9.2 Covered Auto Designation Symbols

Property & Casualty Insurance Exam

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1 Introduction

0.1 About the Property & Casualty Exam 0.2 How to Use This Course

2 Chapter 1: Insurance Fundamentals

1.1 Risk and Risk Management 1.2 Types of Risk 1.3 Principles of Insurance 1.4 The Insurance Contract 1.5 Policy Structure and Components

3 Chapter 2: Property Insurance Concepts

2.1 Property Coverage Basics 2.2 Perils, Hazards, and Exclusions 2.3 Valuation Methods 2.4 Coinsurance and Insurance to Value 2.5 Deductibles and Policy Limits

4 Chapter 3: Dwelling Policies

3.1 Dwelling Policy Overview 3.2 Dwelling Policy Forms (DP-1, DP-2, DP-3) 3.3 Dwelling Property Coverages 3.4 Dwelling Exclusions and Conditions

5 Chapter 4: Homeowners Policies

4.1 Homeowners Policy Overview 4.2 Homeowners Policy Forms (HO-2 through HO-8) 4.3 Section I: Property Coverages 4.4 Section II: Liability Coverages 4.5 Homeowners Exclusions 4.6 Homeowners Conditions 4.7 Common Homeowners Endorsements

6 Chapter 5: Personal Auto Policy

5.1 Personal Auto Policy Overview 5.2 Part A: Liability Coverage 5.3 Part B: Medical Payments Coverage 5.4 Part C: Uninsured/Underinsured Motorists 5.5 Part D: Physical Damage Coverage 5.6 PAP Exclusions 5.7 No-Fault Insurance and PIP

7 Chapter 6: Liability Insurance Concepts

6.1 Liability Insurance Basics 6.2 Negligence and Tort Law 6.3 Types of Legal Liability 6.4 Personal Umbrella Policies

8 Chapter 7: Commercial Property Insurance

7.1 Commercial Package Policy (CPP) 7.2 Building and Personal Property Coverage Form 7.3 Causes of Loss Forms 7.4 Business Income Coverage 7.5 Businessowners Policy (BOP)

9 Chapter 8: Commercial General Liability

8.1 CGL Policy Overview 8.2 Coverage A: Bodily Injury and Property Damage 8.3 Coverage B: Personal and Advertising Injury 8.4 Coverage C: Medical Payments 8.5 CGL Exclusions 8.6 CGL Limits and Conditions

10 Chapter 9: Commercial Auto Insurance

9.1 Business Auto Policy Overview 9.2 Covered Auto Designation Symbols 9.3 BAP Liability Coverage 9.4 BAP Physical Damage Coverage 9.5 Garage and Truckers Coverage Forms

11 Chapter 10: Workers Compensation

10.1 Workers Compensation Overview 10.2 Part One: Workers Compensation Insurance 10.3 Part Two: Employers Liability 10.4 Workers Compensation Exclusions 10.5 Other States and USL&H Coverage

12 Chapter 11: Other Commercial Lines

11.1 Inland Marine Insurance 11.2 Ocean Marine Insurance 11.3 Commercial Crime Insurance 11.4 Surety Bonds 11.5 National Flood Insurance Program 11.6 Professional Liability Insurance 11.7 Commercial Umbrella and Excess Liability 11.8 Boatowners and Personal Watercraft Insurance 11.9 Farm and Ranch Insurance 11.10 Mobile Home and Manufactured Housing Insurance 11.11 Title Insurance

13 Chapter 12: Insurance Regulations and Ethics

12.1 Producer Licensing 12.2 Producer Authority and Responsibilities 12.3 Unfair Trade Practices 12.4 Claims Settlement Practices 12.5 State Insurance Department 12.6 Penalties and Disciplinary Actions

9.2 Covered Auto Designation Symbols

Key Takeaways Explain This Topic AI

There are NINE BAP symbols (1-9); each coverage line on the declarations carries its own symbol, so liability and physical damage are usually written differently.

Symbol 1 (Any Auto) is standard for liability because it blankets owned, hired, and non-owned exposure with no gaps.

Symbols 8 (hired) and 9 (non-owned) are add-ons that fill the rental and employee-car gaps left by owned-only symbols.

Physical damage is usually Symbol 7 (specifically described) or Symbol 2 (owned) because the insurer must value and rate specific vehicles.

Automatic newly-acquired-auto coverage runs 30 days and applies only under Symbols 2, 3, or 4 (and only for the matching auto type); Symbol 7 gives NO automatic coverage.

Last updated: June 2026

Why Symbols Exist

A business fleet is fluid: vehicles are bought, sold, rented, and borrowed constantly. Instead of endorsing each vehicle on and off, the BAP lets the underwriter assign a symbol to each coverage. The symbol number — not a VIN list — defines which autos that coverage reaches. Because each coverage line on the declarations has its own symbol box, a policy commonly reads Symbol 1 for liability but Symbol 7 for physical damage .

The Nine Symbols, Decoded

Symbol Includes Excludes Typical Use
1 – Any Auto Owned, hired, AND non-owned Nothing Liability (broadest)
2 – Owned Only All owned autos, any type Hired & non-owned Liability/phys dmg on owned fleet
3 – Owned Private Passenger Owned cars/SUVs Owned trucks; hired/non-owned Sales-force car fleets
4 – Owned Other Than PP Owned trucks/vans/specialty Owned cars; hired/non-owned Contractors, delivery

5 – Owned Subject to No-Fault Owned autos in PIP states Autos in non-no-fault states Activates PIP automatically

6 – Owned Subject to Compulsory UM Owned autos where UM required Autos in non-UM states Activates UM automatically

7 – Specifically Described Only scheduled vehicles Everything not listed Physical damage
8 – Hired Only Rented/leased/borrowed Owned & non-owned Adds rental exposure
9 – Non-Owned Only Employee/partner personal autos Owned & hired Adds employee-car liability
Symbols 5 and 6 — the State-Mandate Symbols

Symbols 5 and 6 are commonly misread. They do NOT add a category of vehicle; they automatically activate state-mandated coverages . Symbol 5 makes owned autos pick up no-fault / Personal Injury Protection (PIP) wherever required (Florida, Michigan, New York, and others). Symbol 6 does the same for compulsory uninsured motorist (UM) coverage. They ride alongside the liability symbol, not instead of it.

Why Liability and Physical Damage Differ

Liability is usually Symbol 1 — the business wants no gaps if any vehicle hurts a third party.

Physical damage is usually Symbol 7 or 2 — the insurer must know the year, make, model, and value to set the premium and pay a loss, so blanket Symbol 1 physical damage is rarely offered.

The 30-Day Newly-Acquired-Auto Rule

This is heavily tested. Automatic coverage for a vehicle you buy mid-term depends entirely on the symbol:

Symbol on the Coverage Newly Acquired Auto? Reporting
2 (all owned) Auto-covered 30 days Report within 30 days to keep it
3 (owned PP) Auto-covered 30 days IF it is a private passenger auto Report within 30 days
4 (owned other than PP) Auto-covered 30 days IF it is a truck/van Report within 30 days
7 (specifically described) NO automatic coverage Must endorse before loss

Worked example: A contractor's BAP shows Symbol 4 for liability and Symbol 7 for physical damage. The contractor buys a new dump truck and crashes it 10 days later. Liability follows the truck (Symbol 4, within 30 days). But physical damage does NOT — Symbol 7 covers only scheduled units, and the truck was never added. The contractor pays for the truck's own damage out of pocket.

Putting Symbols Together

Business Situation Liability Physical Damage Add-Ons
Large mixed fleet 1 2 or 7 —
Sales reps, all cars 1 (or 3) 7 —
Frequently rents trucks 1 7 8 (hired phys dmg)
Employees run errands 1 7 9 (non-owned liab)

Trap to memorize: Symbol 8 is hired, Symbol 9 is non-owned — students reverse them. Hired = the business pays to use it (rental). Non-owned = a vehicle the business neither owns nor hires (employee's own car).

Reading Symbols on a Declarations Page

On the BAP declarations, each coverage occupies its own row with a symbol box. A typical small-contractor schedule might read:

Covered Autos Liability: Symbol 1 — $1,000,000 combined single limit
Auto Medical Payments: Symbol 2 — $5,000
Uninsured Motorist: Symbol 6 — $1,000,000
Comprehensive: Symbol 7 — $500 deductible
Collision: Symbol 7 — $1,000 deductible

Reading this, liability blankets every auto (owned, hired, non-owned), but physical damage reaches only the trucks actually scheduled. If the contractor rents a backhoe-hauling trailer, liability follows it (Symbol 1 includes hired), yet there is no physical-damage protection on the rental unless Symbol 8 hired-auto physical damage is added.

Symbol Hierarchy and Common Mistakes

Misconception Reality

'Symbol 1 covers physical damage on any car' Insurers rarely write Symbol 1 physical damage — they need a scheduled value (Symbol 7)

'Owned-only includes rentals' Symbol 2 excludes hired; add Symbol 8
'Symbol 9 protects the employee' Symbol 9 protects only the named insured's vicarious liability
'New trucks are always auto-covered 30 days' Only under Symbols 2/3/4 — never Symbol 7

Memorizing these distinctions answers a large share of commercial-auto questions, because exam writers love to pair a symbol with a fact pattern that hides a gap.