The Personal Automobile Policy

Correct

The answer is B: The denial is incorrect because a disablement from any cause qualifies, up to the scheduled amount.

PP 03 03 pays towing and labor costs each time the covered auto is disabled, whatever the cause, up to the amount scheduled on the endorsement. Labor is covered when it is performed at the place of disablement, so a roadside tire change qualifies, while repair work done later at a garage does not. Coverage is not limited to collisions, no preferred-vendor rule applies, and the endorsement does carry a per-disablement limit, so the denial is wrong.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is D: A neighbor who borrows the pickup to move furniture with the named insured's permission.

Part A treats any person using your covered auto as an insured, so a neighbor who borrows the pickup with permission is covered. A named driver exclusion removes the person it names. The policy also excludes liability coverage for anyone using a vehicle without a reasonable belief that he is entitled to do so, which describes both the thief and the friend who was refused.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is D: The insurer may deny coverage if it shows the failure to give notice and cooperate prejudiced it.

The PAP conditions coverage on prompt notice and cooperation in the investigation, settlement or defense of a claim, and the insurer has no duty to provide coverage if the failure to comply is prejudicial to it. Pennsylvania also requires an insurer relying on late notice to prove prejudice from the breach (Brakeman). An insured who settles alone and never notifies the insurer takes that risk, because the policy leaves the insurer to settle or defend as it considers appropriate. Such a settlement does not bind the insurer, and defense and supplementary payments are owed only where coverage applies.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is A: PP 03 23 (Miscellaneous type vehicle)

PP 03 23, the miscellaneous type vehicle endorsement, adds vehicles such as golf carts, motorcycles, all-terrain vehicles, dune buggies and motor homes to the policy, with coverages shown in its schedule. The base policy excludes an owned vehicle that has fewer than four wheels or is designed mainly for use off public roads. The towing, extended non-owned and joint ownership endorsements address other needs.

Reviewed in our October 2026 Pennsylvania fact-check.