What does the bankruptcy provision in a personal auto policy state regarding the insured's bankruptcy?

The bankruptcy provision in a personal auto policy is designed to clarify the relationship between the insured and the insurer in the event that the insured files for bankruptcy. It specifically states that the insurer's obligations to cover claims under the policy will not be affected by the insured's bankruptcy status. This means that even if the insured is declared bankrupt, the insurer is still legally bound to fulfill its obligations according to the terms outlined in the policy.

This provision serves to protect both parties: the insured still has coverage for claims that arise during the policy period, and the insurer remains responsible for its agreed-upon coverage. This enhances consumer protection by ensuring that bankruptcy does not eliminate the insured's ability to receive benefits for claims incurred while the policy was in effect.