Which statement accurately describes BAP’s Rental Lease endorsement?

• A. It covers property damage to autos rented by the named insured or its employees
• B. It does not cover property damage to auto rented or leased by the named insured or its employees
• C. It covers only property damage to owned autos
• D. It covers only liability for rentals

Answer: (B)

The idea being tested is how the Rental Lease endorsement modifies coverage when you deal with vehicles you rent or lease. This endorsement does not extend property damage coverage to autos that are rented or leased by the named insured or its employees. In practical terms, if a rental car is damaged, the BAP’s Rental Lease endorsement will not pay for the damage to that rental vehicle itself; you’d rely on either hired-auto physical damage coverage or the rental company’s own insurance. The endorsement may still affect other aspects of coverage (such as liability exposure when operating a rental or leased vehicle), but it does not provide property damage coverage for the rental or leased vehicle. That’s why the statement describing non-coverage for property damage to rented or leased autos is the accurate description.