Why might Matt's personal auto policy (PAP) liability insurer deny coverage for the accident he caused while delivering coal?

The correct answer indicates that Matt's accident occurred during employment-related activities. In the context of personal auto policies, coverage is typically limited to personal use of the vehicle. When an accident happens while performing job-related duties, such as delivering coal for work, the personal auto policy may exclude coverage because it does not extend to business uses of the vehicle.

Most personal auto policies specifically include exclusions for vehicle use that is commercial or for business purposes. This means that if Matt was engaged in an activity for his job — in this case, delivering coal — the insurer may determine that he was not using the vehicle in a manner covered by his personal auto policy.

Other options relate to different scenarios; for example, a deliberate act would imply intent, which isn't the nature of a liability claim typically covered by a personal auto policy. Using company property during personal time could suggest that Matt was not using his personal auto at all. Lastly, exceeding the usage limit of a personal vehicle could indicate a problem with policy compliance but does not directly relate to the nature of the accident or its cause. Thus, the significant factor in determining coverage revolves around whether the activity was considered a personal or business use when the accident occurred.