special personal auto policy (SPAP)
An auto policy that provides only limited nonowned and permissive use coverage.
Specifically, it limits coverage for family members to maintenance or use of
the named insured's covered autos only. It also limits coverage for a permissive
user to maintenance or use of the named insured's covered auto up to the state's
minimum financial responsibility requirements. Developed by Insurance Services
Office, Inc. (ISO), as a way for its member companies to offer nonstandard auto
coverage, the SPAP adds exclusions for the following: punitive damages, newspaper
and food delivery, business use of nonowned autos, driving under the influence,
use by an unlicensed operator, undisclosed business use, undisclosed operator,
and customizing equipment. Unlike the personal auto policy (PAP), the SPAP does not provide the following:
a 90-day extension of coverage for a nonresident spouse, liability coverage
for a nonowned golf cart, rental coverage after theft of the covered auto, and
the $1,000 of coverage contained in the PAP for aftermarket electronic equipment.