The exam teaches the ISO Personal Auto Policy (PAP) as the model, but California insurers file their own forms, so the policy a consumer buys can differ. One California example: under Insurance Code §11580.1(d)(1), the insurer and a named insured can agree in a signed writing that coverage will not apply while a person designated by name drives. That agreement binds every insured and every third-party claimant, and it applies to all coverage under the policy, not just physical damage.

Eligibility: the PAP is built for private passenger autos, and qualifying pickups or vans, owned by individuals for personal use. Business delivery, carrying passengers for a charge and heavy commercial trucks belong on commercial auto forms. A taxi owned by one person is still a problem, because of its public or livery use.

Who is an insured: the named insured and a resident spouse (together called "you"), family members, and any person using the named insured's covered auto. The CDI outline puts it simply: any person qualifies as an insured while using a covered auto. California law speaks of permissive users (Vehicle Code §16451 and Insurance Code §11580.1(b)(4)), so the driver needs permission but does not need to be listed on the declarations. A named-driver exclusion is the California limit on this rule.

Separated spouse: under the ISO definition, a spouse who stops living in the household stays within "you" only until the earliest of: - 90 days after the change of residence - the start of another policy naming that spouse - the end of the policy period Status does not end on moving day, and it does not run until a divorce decree.