Quite common in automobile policies insuring against risks of fire, theft, collision, personal liability, etc., from the use of the automobile is a provision either effecting a termination of the policy or excluding the particular loss from the coverage of the policy if or when the automobile is used to carry passengers for hire or consideration. The full purport of this type passenger clause is unfortunately too often not realized by the insured person until he is met with a loss, unforeseen and against which he believed himself to be protected. This comment, then, will attempt an analysis of the common types of passenger clause as to the possible and probable effects upon the practical scope of protection offered by the policy. First, it will be concerned with characterizing the "passenger for consideration" as he is contemplated in the policy. Second, it will consider the form of the passenger clause as affecting the insured's protection.
Benjamin G. Cox,
INSURANCE -- EFFECT OF THE PASSENGER-FOR-HIRE CLAUSES ON SCOPE OF PROTECTION UNDER AUTOMOBILE INSURANCE POLICIES,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol37/iss6/7