7.1 Part D: Coverage for Damage to Your Auto

Arkansas Property & Casualty Insurance State

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1 Standalone Coverage Map

Standalone Coverage Map

2 Introduction: Arkansas Property & Casualty Insurance Exam Overview

Arkansas Property & Casualty Exam Overview

3 National Portion: Insurance Fundamentals

1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority

4 National Portion: Property Insurance Concepts

2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses

5 National Portion: Dwelling Policies (DP)

3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage

6 National Portion: Homeowners Policies - Forms & Section I

4.1 Homeowners Forms HO-2 through HO-8 and Eligibility 4.2 Section I Coverages A-D and Additional Coverages 4.3 Section I Perils Insured Against and Exclusions 4.4 Replacement Cost vs. ACV and Loss Settlement in Homeowners

7 National Portion: Homeowners Policies - Section II & Endorsements

5.1 Section II Coverages E (Liability) and F (Medical Payments) 5.2 Homeowners Conditions and Duties After Loss 5.3 Common Homeowners Endorsements (scheduled property, water backup, ordinance or law)

8 National Portion: Personal Auto Policy - Liability & Injury

6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists

9 National Portion: Personal Auto Policy - Physical Damage & Duties

7.1 Part D: Coverage for Damage to Your Auto 7.2 Exclusions and Part E: Duties After an Accident 7.3 Part F: General Provisions, Endorsements, and No-Fault Concepts

10 National Portion: Liability Insurance Concepts

8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury

11 National Portion: Commercial Property Insurance

9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP

12 National Portion: Commercial General Liability - Coverages

10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments

13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions

11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements

14 National Portion: Commercial Auto Insurance

12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements

15 National Portion: Workers Compensation

13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements

16 National Portion: Other Commercial Lines - BOP, Crime & Marine

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17 National Portion: Other Commercial Lines - Specialty & Professional

15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability

18 National Portion: Other Commercial Lines - Surety, Flood & Specialty

16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines

19 National Portion: Insurance Regulation & Market Conduct

17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations

20 National Portion: Ethics & Unfair Trade Practices

18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection

21 Chapter 1: Arkansas P&C Insurance Regulation & Licensing

1.1 Arkansas Insurance Department 1.2 Arkansas P&C Producer Licensing Requirements 1.3 Arkansas Producer Responsibilities

22 Chapter 2: Arkansas Property Insurance

2.1 Arkansas Homeowners Insurance 2.2 Arkansas Commercial Property Insurance

23 Chapter 3: Arkansas Casualty & Auto Insurance

3.1 Arkansas Auto Insurance Requirements 3.2 Arkansas Liability Insurance 3.3 Arkansas Workers' Compensation Insurance

24 Chapter 4: Arkansas Ethics & Professional Conduct

4.1 Ethical Practices and Consumer Protection

7.1 Part D: Coverage for Damage to Your Auto

Key Takeaways Explain This Topic AI

Part D has two triggers: Collision (upset/impact with a vehicle or object) and Other Than Collision (fire, theft, hail, flood, vandalism, glass, animal contact).

Hitting a deer is OTC; swerving and hitting a tree is Collision - the loss-causing event controls the classification.

Loss settlement pays the lesser of ACV or repair/replacement cost, minus the applicable deductible; ACV is the effective limit.

Transportation expenses (default $30/day, $900 max) begin 48 hours after a theft, contingent on carrying the relevant physical-damage coverage.

Wear and tear, mechanical breakdown, road-hazard tire damage, and diminished value are excluded - Part D is accident coverage, not a warranty.

Last updated: June 2026

Part D: Coverage for Damage to Your Auto

Part D of the ISO Personal Auto Policy (PP 00 01 09 18) is the physical-damage section. While Parts A through C cover liability, medical payments, and uninsured motorists, Part D pays to repair or replace the insured's own vehicle . It is first-party, property coverage, and unlike liability it is optional in most states unless a lienholder requires it. Exam questions almost always turn on the split between the two coverage triggers and how the deductible and loss-settlement clauses apply.

The Two Coverage Triggers

Part D provides two distinct, separately purchased coverages, each with its own deductible:

Collision - direct and accidental loss caused by the vehicle's upset (overturning) or its impact with another vehicle or object. Hitting a guardrail, a parked car, or a pothole that bends a rim are collision losses. Rolling the car on an icy curve is collision even though no second object is struck.

Other Than Collision (OTC) , also called Comprehensive - everything else listed as covered: fire, theft, larceny, explosion, earthquake, windstorm, hail, water, flood, malicious mischief or vandalism, riot or civil commotion, contact with a bird or animal, and breakage of glass.

The classification matters because the deductibles usually differ and because an exam favorite is the glass and animal trap . Hitting a deer is OTC (contact with an animal), not collision - even though it feels like an impact. Likewise, a cracked windshield is OTC. But swerving to avoid a deer and hitting a tree is collision , because the loss-causing event was impact with an object. The policy lets the insured elect to have glass breakage treated as collision when it results from a collision, to avoid two deductibles for one event.

What "Your Covered Auto" Includes

Part D follows the same definition of "your covered auto" used throughout the policy: any vehicle shown in the Declarations, a newly acquired auto, a trailer you own, and certain temporary substitute vehicles. A key limitation: a newly acquired auto receives the broadest physical-damage coverage you carry on any other auto only if you ask the insurer to insure it within a stated window. Under the 09 18 edition the window is 14 days if you already carry collision/OTC on at least one auto; if you carry no physical damage on any auto, you must request it within 4 days to get OTC and collision (with a $500 deductible default).