Under Symbol 7, if all owned autos already have Symbol 7 and a new auto is added, what is the likely coverage status of the new auto?

Under Symbol 7, if all owned autos already have Symbol 7 and a new auto is added, what is the likely coverage status of the new auto?

• A. Liability only
• B. Full coverage automatically
• C. No coverage until reported
• D. Cancellation of policy

Answer: (A)

The main idea here is how Symbol 7 handles newly acquired autos. Under this symbol, liability protection automatically attaches to owned autos, including those added after the policy starts. However, other coverages such as collision and comprehensive do not automatically apply to a newly acquired auto—you must notify the insurer and get an endorsement to add those coverages. So, when a new auto is added to a policy that already uses Symbol 7 for all owned autos, the vehicle will have liability coverage immediately, but there won’t be automatic full coverage for physical damage unless you report it and obtain the appropriate endorsement and premium. That’s why the most likely status for the new auto is liability only. The other options imply automatic full coverage, no coverage at all, or policy cancellation, which don’t fit how Symbol 7 typically works.

The main idea here is how Symbol 7 handles newly acquired autos. Under this symbol, liability protection automatically attaches to owned autos, including those added after the policy starts. However, other coverages such as collision and comprehensive do not automatically apply to a newly acquired auto—you must notify the insurer and get an endorsement to add those coverages.

So, when a new auto is added to a policy that already uses Symbol 7 for all owned autos, the vehicle will have liability coverage immediately, but there won’t be automatic full coverage for physical damage unless you report it and obtain the appropriate endorsement and premium. That’s why the most likely status for the new auto is liability only. The other options imply automatic full coverage, no coverage at all, or policy cancellation, which don’t fit how Symbol 7 typically works.