Symbol 1 Coverage under the BAP

December 8, 2014

We have a major discussion going on about the coverage with a commercial client. The commercial client purchased a new vehicle three months into his policy period. He has symbol 1 on the BAP for coverage. We understand that during that policy period the client has automatic liability coverage for a newly acquired vehicle.

Symbol 1 says coverage exists until the end of the policy period. When that policy renews, and the insured does not place that vehicle onto the policy at renewal, is there then coverage for that vehicle if there is an accident for liability? It is no longer a newly acquired vehicle, but an owned vehicle that is in regular daily use.

Iowa Subscriber

Symbol 1 makes any auto a covered auto, so even if the insured does not place the vehicle onto the policy he has liability coverage. It is up to the insurer to attach the proper premium for that vehicle at the end of the policy period while conducting the audit. There are no exclusions to prevent coverage, and the insuring agreement and symbol 1 are the primary considerations.