This provision of the auto coverage form’s liability section is a two part extension for accidents involving a covered auto that is outside the state in which it is licensed. The first part of the provision automatically increases the policy’s liability limits to meet limits specified by law in the jurisdiction where the covered auto is being used. If, for example, a covered auto is being driven in another state requires a $200,000 limit, the insured’s $100,000 limit is increased to $200,000 while the automobile is in that particular state. This extension does not apply to limits specified by any law governing carriers of passengers or property. In other words, the provision only extends to ordinary compulsory or financial responsibility laws and not to motor carrier laws.

The second part of the provision says that the insurer will provide the minimum amounts and types of coverages required of out of state vehicles by the jurisdiction where the covered auto is being used. For example, if the named insured is driving his/her covered auto in a state that requires no-fault coverage, this form will provide such required coverage to the named insured even if he or she does have that coverage on his or her auto form.