ISO Personal Auto Policy Endorsements

ISO PERSONAL AUTO POLICY ENDORSEMENTS

(September 2024)

Protection under the basic (unendorsed) Personal Auto Policy (PAP) is designed for a routine personal auto exposure. This approach achieves several goals. A basic policy can be used for a very large base of customers, create uniformity of coverage, and help to control the cost of coverage for the greatest number of consumers. How are costs controlled? By making additional or broader coverages optional, those insureds whose needs are met by the basic policy don’t have to subsidize those who need or desire special coverage.

ISO has a variety of endorsements. Most of these optional forms are designed for consumers whose coverage needs are not met by the basic PAP contract; the forms typically require additional premium. ISO uses a common system to number its forms: two letters followed by a four-digit form number, then the form’s edition month and year.

With ISO’s introduction of its 09 18 edition of the PAP, some minor formatting and editing has been included along with more significant changes. A couple of minor items worth mentioning regarding most of the 09 18 endorsements. First, ISO removed reference regarding the need that a form be attached to a Change Endorsement when a given policy has been written prior to the endorsement’s use and issuance. Second, with those forms containing schedules, most have been changed to make them more organized and easier to read. (09 18 Change)

Note: The various endorsements are presented in order of Insurance Services Office’s form numbers.

PP 00 08–Transition Endorsement

Withdrawn

PP 00 09–Transition Endorsement

This form is designed to, essentially, transform a 01 05 Personal Auto Policy into the 09 18 edition. The change is made by modifying the sections to incorporate the changes introduced to the PP 00 01 form.

PP 02 01–Suspension of Insurance

This form allows an insured to suspend protection under their PAP for any (or all) vehicles that are listed on the policy (or policy declarations) as covered autos. Policyholder qualifies for a refund when suspension lasts for 30 or more consecutive days. This form is often used with vehicles that are used seasonally.

PP 02 02–Reinstatement of Insurance

This form reverses the action initiated by form PP 02 01, restoring coverage that had been suspended policy. The restoration is effective per the date stated on the form.

PP 03 01–Federal Employees Using Autos in Government Business

This form allows an insured who is a federal employee to be covered under a PAP, with the important exception of when an auto is used on behalf of his or her government duties.

PP 03 02–Optional Limits Transportation Expenses Coverage

This form allows an increase in the amount of coverage for transportation expenses. Coverage may be triggered by a loss to either an owned or a non-owned auto. This endorsement increases the daily and maximum limit available under Coverage Part D, Damage to Your Auto, Transportation Expenses. Instead of merely raising the limit to a specified higher amount, the form allows an insured to select their preferred limits for covering the expense of a covered auto that is unavailable for regular use.

PP 03 03–Towing and Labor Costs Coverage

This endorsement pays up to the amount shown in its schedule or in the policy declarations for towing and labor costs when a covered (owned or nonowned) auto is disabled. Covered labor costs just include those incurred at the point of disablement. In other words, no coverage is provided for work performed at a garage or any other location.

PP 03 05–Loss Payable Clause

This form is used to attach information about any parties having a financial interest in a given covered auto.

PP 03 06–Extended Non-Owned Coverage - Vehicles Furnished or Available for Regular Use

The PP 03 06 provides liability and medical payments coverage for a named individual who is using a regularly furnished non-owned vehicle.

Related Article: PP 03 06─Extended Non-Owned Coverage - Vehicles Furnished or Available For Regular Use

PP 03 07–Trailer/Camper Body Coverage (Maximum Limit of Liability)

This endorsement pays for loss to any described trailer or camper body as well as to awnings, and cabanas or other equipment which is attached to a covered auto and are designed to create additional living facilities. This endorsement should not be confused with PP 03 18–Customizing Equipment endorsement described below.

Related Article: PP 03 07–Trailer/Camper Body Coverage

PP 03 08–Coverage for Damage To Your Auto

Endorsement PP 03 08 amends Part D of a Personal Auto Policy in order to provide coverage to a described vehicle on a stated amount basis. The company's limit is the least of the stated amount shown, actual cash value or the repair or replacement cost; subject to the applicable deductible.

PP 03 09–Single Liability Limits

Endorsement PP 03 09 is available to convert the split limits liability coverage of a Personal Auto Policy to a combined single limit basis.

PP 03 10–Change Endorsement

Note: Form withdrawn because ISO removed the wording under its base policy forms that formerly required post-policy issued endorsements to be attached.

PP 03 11–Underinsured Motorists

This form adds protection for accidental loss caused by a driver who carries insufficient protection.

PP 03 13–Excess Electronic Equipment Coverage

Provides coverage that supplements the very modest amount of electronics protection provided by the unendorsed PAP.

PP 03 15–Full Safety Glass Coverage

Endorsement PP 03 15 provides coverage for replacing loss or damage to auto glass caused during a covered collision.

PP 03 18–Excess Custom Equipment Coverage

Endorsement PP 03 18 provides coverage for the types of custom equipment that is limited to only $1,500 coverage under Part D–Damage to Your Auto of the Personal Auto Policy.

The endorsement covers furnishings that are routinely installed in vans and trucks such as thick carpeting and insulation, beds, bars, sinks, cabinets, water heaters and other items. External custom features which are eligible for coverage include hand paintings, decals, and height-extending roofs.

The same coverage and deductible extends from the covered vehicle. Coverage is granted for the maximum amount that appears in the endorsement’s schedule or on the policy declarations.

PP 03 19–Additional Insured–Lessor

This endorsement allows you to add the insurable interest for a lessor onto a PAP that is insuring a leased automobile. Coverage may be added on either a single or split liability limit basis and actual cash value minus the deductible for Collision and Other Than Collision losses.

PP 03 20–Snowmobile Endorsement

Endorsement PP 03 20 is available under the Personal Auto Policy to schedule coverage for snowmobiles, and it includes an option to exclude the Passenger Hazard.

Related Article: Snowmobile Policy Coverage Form Analysis –a discussion of a full PAP as modified by the PP 03 20 Snowmobile Endorsement.

PP 03 21–Limited Mexico Coverage

Endorsement PP 03 21 extends all Liability, Medical Payments, Uninsured Motorists, Damage to Your Auto, and any no-fault coverage afforded to a covered person, to accidents occurring in Mexico within 25 miles of the United States border, while the covered person is on a trip of 10 days or less.

PP 03 22–Named Non-Owner Coverage

Endorsement PP 03 22 may be used with a Personal Auto Policy to provide coverage for an individual who does not own an auto. (It is not to be confused with PP 03 06–Extended Non-Owned Coverage for Named Individual Endorsement described above.)

Related Article: PP 03 22, Named Non-Owner Coverage

PP 03 23–Miscellaneous Type Vehicles

This form is used to convert the PAP into a policy that will cover the applicable, described vehicles.

Related Article: PP 03 23–Miscellaneous Type Vehicle

PP 03 26–Liability Coverage Exclusion Endorsement

Use of this endorsement amends the PAP to exclude coverage for bodily injury suffered by a named insured or any family member when injured by a “covered vehicle.”

PP 03 28–Miscellaneous Type Vehicle Amendment (Motor Homes)

Transforms the coverage of a PAP to protect a described motor home.

PP 03 34–Joint Ownership

This form allows relatives other than husband and wife (regardless of residency) or unrelated, resident individuals who jointly own private passenger vehicles to be insured as joint owners.

Related Article: PP 03 34–Joint Ownership Coverage

PP 03 35–Auto Loan/Lease Coverage(09 18 Change)

Endorsement PP 03 35 is a coverage that should be discussed with all insureds who finance or lease an auto. Traditional car loan/lease periods are lengthening from an average of 36 to 60 months and beyond. An auto’s value may depreciate more quickly than the customer's loan balance. Thus, in a total loss, the insured may receive an actual cash value payment that is less than the loan amount. This gap can now be covered by endorsement PP 03 35. The coverage will not pay any excessive use payments for leased vehicles, or costs for warranties and other loan add-ons, or any late fees or overdue lease or loan payments.

The form has been modified. Its coverage explanation is divided into parts A. and B. Part B. advises that, if other sources of coverage similar to the protection provided by this form exist, then the PP 03 35 responds on an excess basis. (09 18 Change)

PP 03 56–Mexican Collision Coverage

Endorsement PP 03 56 extends the PAP protection that exists under Part D. Coverage For Damage to Your Auto, to accidents occurring in Mexico. The policy’s declarations must indicate that Part D. applies to the vehicle that suffers a loss. The highest deductible for Part D. coverage that appears on the applicable policy applies when more than one covered article are damaged in the same accident. The form also adds its own exclusion which does two things. First, it only allows repairs to be made in Mexico when the damaged vehicle is incapable of being driven back to the U.S. Second, payment is restricted to ACV as it would be calculated in the U.S.

PP 03 96–Extended Non-Owned Coverage For Named Individual (Auto Business)

PP 03 06 provides liability and medical payments coverage for a named individual who is using a vehicle in which they (or any family member) have no ownership interest. Essentially, coverage is granted to persons in the auto business while operating vehicles owned by other parties.

PP 04 01–Single Uninsured Motorists Limits

This form allows an insured to convert the limits of insurance that is provided for uninsured motorists coverage from the (default) split limit of liability to a single limit basis.

PP 04 02–Single Underinsured Motorists Limits

This form allows an insured to convert the limits of insurance that is provided for underinsured motorists coverage from the (default) split limit of liability to a single limit basis.

PP 13 01–Coverage for Damage to Your Auto Exclusion

This endorsement bars claims asking reimbursement for a perceived, post-loss reduction of a vehicle’s market value.

PP 13 02–Trip Interruption Coverage

This form provides coverage for certain additional expenses an insured has to pay because of the breakdown and, subsequent, loss of use of a covered auto. Coverage is capped at $600 per covered incident and the covered vehicle must be unavailable for more than 24 hours. Further, the loss has to take place at least 100 miles away from the insured's home. Covered expenses include the cost of hotels/motels and meals.

PP 13 03–Trust Endorsement

This form was introduced with the 01 05 edition of the PAP program (replacing form PP 03 33–Certificate of Insurance - Trusts.) It applies in situations where a trust owns a vehicle. It includes a schedule for listing the applicable trust and its trustees and it alters the base policy so that the named trust is given status as a covered person under the PAP. It also changes the notification provision so that a notice of either a policy cancellation or non-renewal is sent to the trustee.

Its schedule was expanded under the 09 18 edition to list specific parties. Instead of just a trust’s name and address, similar space is provided for grantors/settlors and trustees who are not the same as the named insured. The form’s definitions and general provisions were also expanded, clarifying intent regarding owned vehicles, notification requirements and reporting on changes in a trust’s status.

PP 13 05–Extended Non-Owned Coverage - Vehicles Furnished Or Available For Use As Public Or Livery Conveyances.

This form allows a named individual to have liability (and medical payments) coverage while using a non-owned vehicle for certain transport situations (either persons or goods).

PP 13 06–Custom Equipment Exclusion Endorsement (09 18 withdrawn)

The wording of this endorsement has been incorporated into the PP 00 01 wording.

PP 13 16–Low Speed Vehicle Endorsement

This form modifies the PAP to expand coverage for small, slow-moving, 4-wheeled vehicles (between 20 – 25 mph on pavement). Coverage applies to any such vehicle that is described in the form’s schedule. Protection is available for both liability and physical damage.

PP 23 16–Personal Vehicle Sharing Program Exclusion Endorsement

Withdrawn

The wording of this endorsement was incorporated into the PP 00 01 09 18 edition.

PP 23 40-Public or Livery Conveyance Exclusion Endorsement

Withdrawn

The wording of this endorsement was incorporated into the PP 00 01 09 18 edition.

PP 23 41-Transportation Network Driver Coverage (No Passenger) (09 18 change)

This form provides liability, medical payments uninsured motorists and physical damage coverage for losses that occur while a vehicle is logged onto a “transportation network platform.” Coverage continues after the transportation request is accepted but ends when that passenger occupies the vehicle and isn’t restored until that passenger is out of the vehicle. The form includes a schedule with space to enter a described vehicle, desired coverages, limits, and premiums.

The form is modified to include the policy-added exceptions for share-the-expense carpools, charity and volunteer situations.

PP 23 45-Limited Transportation Network Driver Coverage (No Passenger) (09 18 change)

This form provides liability, medical payments, uninsured motorists, and physical damage coverage for losses that occur while a vehicle is logged onto a “transportation network platform.” Coverage ends when a request for transportation has been accepted and isn’t restored until the passenger is out of the vehicle. The form includes a schedule with space to enter a described vehicle, desired coverages, limits, and premiums.

This includes exceptions for share-the-expense carpools, charity and volunteer situations.

PP 33 05-Full Safety Glass Coverage

This form modifies the PAP to add protection against breakage of vehicle safety glass. Payment is not subject to a deductible and is paid under the policy’s Other Than Collision Coverage.

PP 33 10-Replacement Cost Coverage

This form modifies the PAP to add limited term, full replacement cost coverage on selected vehicles. PP 33 10 has its own schedule for entering covered vehicle and premium information. It also replaces the base PAP’s definition of covered auto. The protection is only for owned vehicles, so newly acquired, rented, leased and non-owned vehicles aren’t eligible.

Replacement cost protection is provided for vehicles under the PAP’s Coverage for Damage to Your Auto section. There are limitations. Besides being strictly an owned auto, replacement is provided only for total losses that occur within 24 months of the vehicle’s original ownership by the insured and, at the time of loss it may not have logged more than 24,000 miles.

Payment under the option is to provide a new vehicle of the same type that is totaled. If a new version of the same type is not possible, a substitute that’s as close as possible to the lost auto will be provided, subject to having a value no greater than 110% of the lost vehicle’s MSRP.

PP 33 27-Key Replacement & Related Services Coverage

This form modifies the PAP to add separate protection against the expenses related to the loss of a described covered auto’s keys. A specific limit may be selected and the insurance limit along with a premium must be entered on the form’s schedule.

Besides handling the cost of a key or key fob, the limit applies to related costs such as labor to gain access to a vehicle and programming for the key/fob. Any payment makes consideration of other payment sources such as warranties or auto clubs. When such sources exist, this form’s coverage responds on an excess basis.

PP 33 30-Child Restraint System Coverage

This form expands coverage under the PAP’s Coverage for Damage to Your Auto section to respond to loss or damage to child restraints. The maximum amount paid is the coverage limit that’s specified in the form’s schedule. Further, loss applies only to such a system that’s damaged while located inside an auto (either owned or non-owned) and that’s owned by an insured (named insured or family member, as defined in the policy.)

PP 33 31-Pet Injury Coverage

This form expands coverage under the PAP’s Coverage For Damage To Your Auto section to respond to veterinarian treatment costs for injury to a dog or cat. It also applies to disposal expense if the loss results in the pet’s death.

The maximum amount paid is the coverage limit that’s specified in the form’s schedule. Further, loss applies only to a dog or cat that’s injured while located inside an auto (either owned or non-owned) and that’s owned by an insured (named insured or family member, as defined in the policy.)

PP 33 37–Additional Resident of Your Household

The definition of family member is amended to include whoever is added in the schedule within this endorsement.

PP 33 42-Personal Property Coverage

This form expands coverage under the PAP. Essentially, it attaches coverage similar to what is found under a residential property or personal inland marine form. The endorsement is self-contained with its own schedule, insuring agreement, definitions, exclusions, duties, and general provisions.

It protects certain types of personal property belonging to the named insured. The form responds to direct loss to property that occurs anywhere in the world, subject to the aggregate limit for the property that appears in the schedule. Protection is granted except for the listed exclusions and subject to the listed deductible.