Understanding the Role of Symbols in the BAP

In the world of commercial insurance, the Business Auto Policy (BAP) uses a unique system of numerical symbols to define exactly which vehicles are covered under specific policy sections. For candidates preparing for the Texas General Lines Property and Casualty exam, mastering these symbols is essential. These numbers, typically found on the declarations page, determine the scope of coverage for liability, physical damage, and other endorsements.

The symbols act as a shorthand to describe categories of vehicles. Instead of listing every vehicle's VIN for every single coverage type, the insurer uses a symbol. This provides flexibility for businesses as their fleet changes throughout the policy period. To gain a broader understanding of how this fits into the larger licensing framework, refer to our complete TX General exam guide.

Symbols 1 through 6: Owned and Compulsory Coverages

The first six symbols primarily deal with vehicles owned by the business or those required to have specific coverages by state law.

  • Symbol 1: Any Auto. This is the broadest symbol available and is almost exclusively used for Liability coverage. It covers any auto the insured owns, hires, borrows, or uses, including those acquired after the policy begins.
  • Symbol 2: Owned Autos Only. This covers all autos owned by the named insured. If Symbol 2 is used for liability, it also provides automatic coverage for trailers the insured doesn't own while attached to owned power units.
  • Symbol 3: Owned Private Passenger Autos Only. This symbol restricts coverage to four-wheel private passenger vehicles (cars, station wagons) owned by the business, excluding trucks or buses.
  • Symbol 4: Owned Autos Other Than Private Passenger Autos Only. This is the inverse of Symbol 3, covering commercial vehicles like dump trucks, semi-trailers, and delivery vans owned by the insured.
  • Symbol 5: Owned Autos Subject to No-Fault. This is used in states with mandatory Personal Injury Protection (PIP) laws.
  • Symbol 6: Owned Autos Subject to a Compulsory Uninsured Motorists Law. This applies to autos owned by the insured in states where Uninsured Motorist coverage cannot be rejected.

Coverage Breadth Comparison

FeatureSymbolDescriptionCommonly Used For
Symbol 1Any AutoBroad Liability Protection
Symbol 7Specifically Described AutosPhysical Damage (Collision/Comp)
Symbol 8Hired Autos OnlyRented or Leased Vehicles
Symbol 9Non-Owned Autos OnlyEmployee-owned vehicles used for work

Symbols 7, 8, 9, and 19: Specific and Non-Owned Scenarios

As we move further down the list, the symbols become more specific or address vehicles the business does not actually own.

p>Symbol 7: Specifically Described Autos. This is the most restrictive symbol. Coverage applies only to the vehicles specifically listed in the policy schedule. For the Texas exam, remember that if Symbol 7 is used, the insurer must generally be notified within 30 days if the insured acquires a new vehicle for coverage to apply to that new vehicle.

Symbol 8: Hired Autos Only. This covers autos the insured leases, hires, rents, or borrows. Crucially, this does not include autos borrowed from employees or members of their households.

Symbol 9: Non-Owned Autos Only. This covers autos the insured does not own, lease, hire, or borrow that are used in connection with the business. The most common example is an employee using their personal car to run a business errand. This protects the employer from liability, not the employee personally.

Symbol 19: Mobile Equipment. This covers land vehicles that would normally be defined as mobile equipment (like forklifts or bulldozers) but are subject to a motor vehicle liability law in the state where they are licensed or garaged.

Quick Symbol Reference for Exam Day

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Symbol 1
Broadest Coverage
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Symbol 7
Most Restrictive
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Symbol 9
Employee Vehicles
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Symbol 8
Rentals/Leases
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Texas Exam Strategy

On the Texas General Lines exam, pay close attention to questions regarding Symbol 1 and Symbol 7. Examiners often test the difference between the 'automatic' coverage of Symbol 1 and the 'reporting requirements' of Symbol 7. You can practice these specific scenarios using our practice TX General questions.

Frequently Asked Questions

Technically, symbols 1-6 can be used for any coverage, but Symbol 1 is almost always reserved for Liability. Physical Damage (Collision/Comprehensive) usually uses Symbol 2, 3, 4, or 7 to limit the insurer's exposure to specifically identified or owned vehicles.
Symbol 8 (Hired Autos) covers vehicles the business pays to use (rentals/leases). Symbol 9 (Non-owned Autos) covers vehicles owned by others, primarily employees, used for business purposes without the company paying a rental fee for the vehicle itself.
Only if the insurer already covers all autos owned by the insured for that coverage, or if the new vehicle replaces a previously covered one. Even then, the insured must typically notify the company within 30 days.
Mobile equipment is usually covered under General Liability. However, if a piece of equipment (like a specialized truck) is required by state law to carry auto insurance, Symbol 19 brings it under the Business Auto Policy.