What it does
Losses under the policy are paid to the named insured and the loss payee as interests may appear. The loss payee's interest is not invalidated by the insured's fraudulent acts unless the loss results from conversion, secretion or embezzlement of the auto; the loss payee gets the same advance notice of cancellation as the named insured, and the insurer is subrogated to the loss payee's rights when it pays the loss payee.
Who needs it
Every financed vehicle; lenders require it on the declarations or by endorsement.
Quoting and selling notes
- Leased vehicles usually also need PP 03 19 (Additional Insured – Lessor).
How PAP endorsements attach
PAP endorsements modify PP 00 01 and are listed on the declarations (PP DS 01). In the 2018 revision ISO also made editorial changes across the multistate endorsements, including a statement that schedule information not shown on the endorsement will be shown in the declarations, so check the declarations page for limits, vehicles and named persons.
Editions and availability
Current edition 09 18, replacing 08 86. State adoption varies; many states use state-specific versions of the PAP endorsements.
