What requirement must be fulfilled for automatic liability coverage to apply to a newly acquired vehicle in a PAP?

Prepare for the Auto Insurance Exam with study tips, flashcards, and multiple-choice questions. Each question includes hints and explanations to ensure you're exam-ready!

For automatic liability coverage to apply to a newly acquired vehicle under a Personal Auto Policy (PAP), the requirement is to notify the insurer within a specified period, generally within 14 days. This provision allows policyholders to have continuous coverage without experiencing a lapse in insurance, which is particularly important when acquiring a new vehicle. By informing the insurer promptly, the policyholder ensures that the new vehicle is covered for liability, reducing the financial risk associated with potential accidents or damages that could arise before formal policy adjustments are made.

This requirement emphasizes the importance of communication between the insured and the insurer. It also helps in managing the insurer's risk and maintaining accurate and updated records of insured vehicles. Other options involve conditions that might be relevant for different types of coverage or circumstances but are not specifically tied to the automatic coverage for new vehicles.

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