Which two conditions allow the BAP coverage territory to be anywhere in the world?

• A. A covered private passenger type auto leased, hired, rented, or borrowed without a driver for 30 days or less; and the insurer agrees to a settlement or where damages are awarded in a suit brought in the described territory
• B. The auto must be owned by the insured; The insured must pay extra premium
• C. The territory must be Mexico
• D. The policy must have liability coverage

Answer: (A)

The key idea is that the Business Auto Policy can extend its coverage territory beyond the usual US/Canada/Puerto Rico area when a non-owned auto is used only temporarily and the insurer agrees to cover that broader territory. Specifically, if a covered private passenger auto is leased, hired, rented, or borrowed without a driver for 30 days or less, the policy can extend worldwide for claims arising in that territory, but only if the insurer agrees to cover or settle claims there (or damages are awarded in a suit brought in that territory). Those two conditions together—short-term use of a non-owned auto and the insurer’s consent to coverage in the other territory for settlements or judgments—make worldwide coverage possible.

The other options don’t fit because simply owning the auto or paying extra premium isn’t what allows the global extension. Limiting the territory to Mexico isn’t consistent with the “anywhere in the world” intent, and having liability coverage alone doesn’t create the worldwide extension; the extension hinges on the short-term non-owned auto arrangement and the insurer’s agreement to cover in that territory.