For the Kentucky Personal Lines exam, the Personal Auto Policy (PAP) is tested two ways: the national policy structure and the Kentucky auto laws layered on top of it. This standalone guide walks through the lettered parts every PAP uses, then focuses on the Kentucky rules an agent applies every day—the choice no-fault system, Basic Reparation Benefits (PIP), the 25/50/25 financial-responsibility minimums, pure comparative negligence, and the uninsured/underinsured-motorist coverages. Spend your study time on the Kentucky overlay; that is where the state questions live.

The national fundamentals (quick version)

The Personal Auto Policy insures individuals and families for the vehicles they own and drive. It is divided into clearly labeled parts:

• Part A — Liability Coverage: pays for bodily injury (BI) and property damage (PD) the insured is legally responsible for, with a duty to defend and defense costs paid on top of the limit.
• Part B — Medical Payments: pays medical and funeral expenses for the insured and passengers regardless of fault.
• Part C — Uninsured/Underinsured Motorists (UM/UIM): pays your injuries when the at-fault driver has no insurance or too little.
• Part D — Coverage for Damage to Your Auto: Collision and Other Than Collision (Comprehensive), each with a deductible, paid at Actual Cash Value (ACV).
• Part E — Duties After an Accident or Loss and Part F — General Provisions set the rules.

An insured generally includes the named insured, the resident spouse, resident family members (including a child away at school), and anyone using the covered auto with permission. Eligible vehicles are private passenger autos, pickups, and vans not used primarily for business. That skeleton is the same nationwide; Kentucky changes the dollar limits and the legal environment around it.

Kentucky is a choice no-fault state

Unlike a pure at-fault state, Kentucky operates a choice no-fault system under the Motor Vehicle Reparations Act (MVRA). When a motorist buys auto coverage, they are presumed to accept a tort limitation and, in return, receive Basic Reparation Benefits (BRB)—Kentucky's name for personal injury protection (PIP). BRB pays the insured's medical, wage-loss, and related expenses regardless of who caused the crash, up to a statutory amount.

The "choice" is the distinctive part: an insured who wants to keep the unlimited right to sue must reject the tort limitation in writing. If they don't reject it, they trade away the right to sue for lesser injuries and rely first on their own BRB. The single most important sentence to memorize: Kentucky provides no-fault Basic Reparation Benefits unless the insured rejects the tort limitation in writing.

When fault does come into play (in liability claims), Kentucky uses pure comparative negligence. A claimant's recovery is reduced by their own share of fault but is not barred—even a claimant who is mostly at fault recovers something. This differs sharply from a modified-comparative state with a 50% or 51% cutoff.

Financial responsibility: the 25/50/25 minimums

Kentucky drivers must demonstrate financial responsibility, almost always by buying liability insurance that meets the state's minimum split limits, commonly cited as 25/50/25 (verify the current statute):

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage per accident

Agents say this aloud as "25/50/25." In split limits, the first number is the most paid for one person's bodily injury, the middle number ($50,000) caps all bodily injury in one accident, and the third number ($25,000) is the property-damage limit. These are bare minimums—most clients should buy more to protect their assets.

Basic Reparation Benefits, Med Pay, UM and UIM

• Basic Reparation Benefits (PIP) is the no-fault first-party coverage that pays the insured's own medical and wage-loss expenses regardless of fault—the centerpiece of Kentucky auto coverage.
• Medical Payments (Med Pay) is a separate first-party coverage that pays reasonable medical and funeral costs for the insured and occupants regardless of fault. Don't confuse it with BRB.
• Uninsured Motorist (UM) pays the insured's damages when the at-fault driver carries no liability insurance (and responds to hit-and-run).
• Underinsured Motorist (UIM) applies when the at-fault driver has insurance but not enough, paying the gap between the other driver's lower limits and the insured's UIM limit.

The recurring theme: UM = the other driver has none; UIM = the other driver has too little.

Physical damage and other coverages

• Collision pays for damage from impact with another vehicle or object, or overturning; Comprehensive (Other Than Collision) pays for fire, theft, vandalism, hail, falling objects, and animal strikes. A deductible applies to physical-damage coverages, and a total loss is paid at ACV.
• The coverage territory is generally the United States, its territories and possessions, and Canada.
• A newly acquired auto is covered for a limited time if reported within the required period, and a permissive user is generally covered.
• A policy excludes loss while the auto is used in organized racing or speed competition, among other listed exclusions.

Cancellation and nonrenewal notice

Kentucky limits how and when an insurer can end a personal auto policy and generally requires advance notice before canceling or nonrenewing, so the insured can shop for replacement coverage. Treat specific day-counts as statutory and verify; the testable point is that notice is required and post-establishment cancellation is limited to defined reasons.

Required vs. optional coverages in Kentucky

Key Kentucky numbers to memorize

Common exam traps

• Treating Kentucky as pure tort. It is choice no-fault: BRB/PIP by default unless the tort limitation is rejected in writing.
• Applying a 50%/51% bar. Kentucky is pure comparative negligence—recovery is reduced, not barred.
• 25/50/25—don't transpose the $25k property-damage figure into a bodily-injury slot.
• Confusing BRB with Med Pay. BRB is the statutory no-fault benefit; Med Pay is a separate optional coverage.
• Mixing up UM and UIM. UM = no coverage; UIM = too little coverage.
• Hitting an animal is Comprehensive, not Collision.
• Liability defense costs are paid in addition to the limit (national rule that still applies in Kentucky).

Quick recap

• The PAP keeps its national Parts A–F structure; Kentucky changes the limits and legal context.
• Kentucky is a choice no-fault state under the Motor Vehicle Reparations Act, providing Basic Reparation Benefits (PIP) regardless of fault unless the insured rejects the tort limitation in writing.
• For liability, Kentucky uses pure comparative negligence (recovery reduced, never barred).
• Financial-responsibility minimums are commonly 25/50/25 (verify).
• UM covers an at-fault driver with no insurance; UIM fills the gap when limits are too low; Med Pay is a separate optional first-party coverage.
• Physical-damage coverages settle at ACV, and the insurer must give advance notice to cancel or nonrenew.