fleet automatic, auto
In automobile insurance, provides physical damage coverage automatically
to all newly acquired automobiles owned by the insured. Premium charges for
these automobiles are made through either a reporting form or an audit at the
end of the policy period. The term was used before the advent of
the business auto coverage form when a physical damage endorsement was added
to the commercial auto liability policy to afford such coverage. Two versions
of the endorsement were available: fleet automatic and nonfleet automatic. The
business auto policy (BAP) equivalent to physical damage fleet automatic is covered
auto symbol 2, 3, or 4.
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