3 - C Personal Auto
Which of the following does NOT count as "bodily injury" according to a personal auto policy? A. Sickness B. Psychological trauma C. Death D. Disease
B. Psychological trauma
According to the "definitions" section of a personal auto policy, which of the following is NOT "occupying" her vehicle? A. Rachel leaves her cat in her car, with the windows cracked, while she goes into the drugstore to fill a prescription B. Trishey is leaning on her car during a lunch break while she eats her lunch C. Jaminda is sitting on top of her car as she talks to her best friend on the phone D. Jordan is sitting in her parked car listening to music while she waits for her sister to finish yoga class
A. Rachel leaves her cat in her car, with the windows cracked, while she goes into the drugstore to fill a prescription
Define: Supplementary payments
Assists policyholder with a variety of accident-related expenses (such as lost wages or bail bonds) and is not subject to liability limit
Nancy and Drew borrow Joe's car so they can have a picnic at the old water tower. On their way to the picnic, Drew accidently rear ends Mr. Jackley, causing $2,900 in damage. Whose liability insurance will pay first for the damages? A. Mr. Jackley's B. Joe's C. Nancy's D. Drew's
B. Joe's
Lemon Insurance Co. decides not to renew Hugh's Personal Auto policy, which is set to expire on May 31. Which of the following statements is TRUE? A. Lemon Insurance must notify Hugh at least 10 days before the policy expires. B. Lemon Insurance must notify Hugh at least 45 days before the policy expires. C. Hugh's policy will be effective until 12:00 AM on June 1. D. Hugh's policy will be effective until 11:59 PM on May 31.
B. Lemon Insurance must notify Hugh at least 45 days before the policy expires.
PIP coverage will pay for injuries to all of the following persons, EXCEPT: A. Your passenger without PIP B. The driver you struck C. You, when riding in another person's automobile D. Your family member
B. The driver you struck
Medical payments pays for covered medical expenses for up to _____ after an accident. A. Six months B. Three months C. Three years D. Six years
C. Three years
Define: Part A - liability
Covers insured's financial liability for damages he causes
Define: Part E - Duties after an accident or loss
Lists eight duties, such as reporting accidents promptly and cooperating with the insurer's investigation
Define: PIP coverage
No-fault coverage for the insured's own injuries caused by car accidents; primary coverage, meaning it pays before part B kicks in
Define: Part C - uninsured motorist
Optional, no-fault coverage for damage and injuries caused by drivers who have no insurance or not enough insurance
Define: Part B - medical payments
Optional, no-fault coverage for insured's own bodily injuries resulting from car accidents
Define: Part D - coverage for damage to your auto
Pays for damages to insured's vehicle. Available as collision or other than collision coverage
Define: Liability limits
The insured may also pay a higher premium in exchange for higher liability limits (such as 50 / 100 / 50 or 100 / 200 / 100)
Mark is driving along and looking for an address on the East side of Walker Street. As he squints to see the numbers posted on the buildings, he plows into the back of a car waiting at a stoplight. Both the driver and the passenger of the struck car are injured. The driver suffers $70,000 in bodily injury, the passenger suffers $65,000 in bodily injury, and the vehicle Mark hit sustains $30,000 in damage. Mark has liability coverage with split limits of 50/100/25, and both injured people carry the minimum PIP for Florida. How much will Mark be responsible for out-of-pocket after this accident? A. $20,000 B. None; Mark is totally covered by his policy. C. $15,000 D. $45,000
A. $20,000
D'Anton spills coffee in his lap while driving, causing him to veer off the road and smash into a telephone pole. Which part of his auto insurance policy will help him pay for the repairs to his car? A. Collision coverage B. Comprehensive coverage C. McDowells coffee coverage D. Liability coverage
A. Collision coverage
Which of the following would NOT be covered under part A of a personal auto policy? A. Damage the insured causes to his own garage B. Damage the insured causes while driving his friend's car C. Legal defense costs D. Lost wages
A. Damage the insured causes to his own garage
Which of the following is NOT one of the advantages of no-fault insurance? A. It helps to eliminate insurance fraud. B. It reduces the number of liability lawsuits. C. It is a simple and straightforward form of coverage. D. It enables the policyholder to deal directly with her own insurer.
A. It helps to eliminate insurance fraud.
Which of the following occurrences would be covered under other than collision coverage? A. Jane's windshield is cracked when she hits a bird B. Jessica's car is confiscated by the federal government C. Jordan runs over a big pothole and ruins one of his tires D. Jimmy's car is completely destroyed in a nuclear explosion
A. Jane's windshield is cracked when she hits a bird
Julie maintains collision coverage with a $1,000 deductible on her 2007 pickup truck. While returning home from work, Julie swerves to miss a deer and ends up crashing into a telephone pole. Julie's truck sustains $35,000 in damages, yet the actual cash value of the vehicle is only $11,000. Which of the following statements is TRUE? A. Julie will be indemnified by her insurer for $10,000 B. Collision coverage will not pay for Julie's accident C. Julie will be indemnified by her insurer for $11,000 D. Julie will be indemnified by her insurer for $34,000
A. Julie will be indemnified by her insurer for $10,000
According to the "definitions" section of a personal auto policy, which of the following would NOT qualify as a "family member?" A. The insured's ex-wife who moved out of the house 4 months ago B. The insured's foster child C. The insured's adopted daughter D. The insured's cousin who is living with the insured
A. The insured's ex-wife who moved out of the house 4 months ago
No-fault insurance in a personal auto policy: A. Typically only provides coverage for bodily injury B. Is limited, but will pay for any damages an insured may cause without requiring proof of loss C. Is mandatory in all states D. Provides liability coverage for a third party, regardless of who is at fault
A. Typically only provides coverage for bodily injury
Which of the following is NOT a reason to buy more insurance than the minimum amount required by Florida? A. Your premiums will be lower when you purchase more coverage. B. Drivers are liable for all damages they cause. C. The cost of an F-250 Super Duty can be upwards of $60,000. D. An auto policy pays for liability, but only up to the set limits.
A. Your premiums will be lower when you purchase more coverage.
In Florida, Uninsured/Underinsured Motorist Coverage: A. is required in every auto policy, unless the insured declines it in writing. B. cannot be stacked. C. is not available in a Personal Auto Policy. D. is mandatory for all drivers.
A. is required in every auto policy, unless the insured declines it in writing.
Define: Endorsements
Add or change coverage
Anyone who registers or drives a car in Florida must have PIP coverage of at least: A. $20,000 B. $10,000 C. $15,000 D. $5,000
B. $10,000
Bill carries $10,000 in PIP coverage with a $500 deductible. One day, he accidentally crashes into a car stopped at a red light. The driver of the stopped car is miraculously free from injury, but Bill's medical bills from the collision come to $14,000. How much will Bill's PIP pay for his injuries? A. $10,800 B. $10,000 C. $9,500 D. $11,200
B. $10,000
What is the minimum amount of PIP coverage required by the state of Florida? A. $5,000 B. $10,000 C. $50,000 D. $25,000
B. $10,000
In Florida, every driver must have $10,000 in property damage liability coverage and $10,000 in PIP in order to operate a motor vehicle. If the driver is in a wreck and is found to be at fault, how much liability coverage must the driver have for total bodily injury per accident? A. $15,000 B. $20,000 C. $30,000 D. $10,000
B. $20,000
Mark is driving along and looking for an address on the East side of Walker Street. As he squints to see the numbers posted on the buildings, he plows into the back of a car waiting at a stoplight. Both the driver and the passenger of the struck car are injured. The driver suffers $60,000 in bodily injury, the passenger suffers $55,000 in bodily injury, and the vehicle Mark hit sustains $30,000 in damage. Mark has liability coverage with split limits of 50 / 100 / 25. How much will Mark be responsible for out of pocket after this accident? A. $15,000 B. $20,000 C. None; Mark is totally covered by his policy D. $45,000
B. $20,000
Janine is in a car accident that is covered by per personal auto policy. What information does Janine NOT have to submit to her insurer? A. A proof of loss, when requested B. A list of the witnesses of the accident C. The report from a damage appraisal D. Medical bills from the collision
B. A list of the witnesses of the accident
which of the following would NOT be covered under a personal auto policy? A. A 15-passenger van weighing 7,200 lbs. B. An 18-wheeler with a driver and a passenger C. A passenger car used by a son or daughter who is home from college D. A passenger car loaned to a friend
B. An 18-wheeler with a driver and a passenger
Bonnie's PAP includes Comprehensive coverage. Which of the following losses could this coverage pay for? A. Bonnie's car breaks down due to an engine malfunction. B. Bonnie's car catches fire. C. Bonnie rolls her vehicle in a one-car accident. D. Bonnie rear-ends another vehicle.
B. Bonnie's car catches fire.
As Paul is driving up to the mountains to do some hunting, a deer sprints out in front of him. He strikes the deer, causing $5,000 in damage to his truck at $1,000 in injuries to himself. What insurance coverage would pay for the damage to Paul's truck? A. PIP B. Comprehensive C. Collision D. Liability
B. Comprehensive
Hank has collision coverage with a $2,000 deductible on his 2010 truck. One dark, rainy night, Hank's truck slips off the road and rolls down the embankment. The truck sustains $45,000 in damages, but the actual cash value of the vehicle is only $25,000. Which of the following statements is TRUE? A. Collision coverage will not indemnify Hank for this accident B. Hank will be indemnified by his insurer for $23,000 C. Hank will be indemnified by his insurer for $25,000 D. Hank will be indemnified by his insurer for $43,000
B. Hank will be indemnified by his insurer for $23,000
Sonia maintains collision coverage with a $1,000 deductible on her 2015 sedan. While returning home from work, Sonia swerves to miss a raccoon and ends up crashing into a telephone pole. Sonia's car sustains $25,000 in damages, yet the actual cash value of the vehicle is only $15,000. Which of the following statements is TRUE? A. Sonia will be indemnified by her insurer for $24,000. B. Sonia will be indemnified by her insurer for $14,000. C. Sonia will be indemnified by her insurer for $11,000. D. Collision coverage will not pay for Sonia's accident.
B. Sonia will be indemnified by her insurer for $14,000.
In a personal auto policy, the term "family member" would include: A. The named insured's 18 year old daughter, who lives with her husband in New Jersey B. The named insured's 26 year old son who lives at home C. The named insured's ex-husband, who moved out 4 months ago D. The named insured's ex-husband, who moved out 5 months ago
B. The named insured's 26 year old son who lives at home
Kelly took her eyes off the road and ended up smashing into the back of a passenger van. All five passengers were injured, each one ended up with $25,000 in medical costs. Assuming Kelly has liability coverage with limits of 50 / 100 / 50, how much will she have to pay out of pocket? A. $15,000 B. $50,000 C. $25,000 D. $10,000
C. $25,000
Wilson is a Florida resident who maintains a liability policy with limits of 10/20/10. Recently, he was visiting a friend in Georgia when he ran a red light and hit a BMW, causing $30,000 in property damage. The minimum liability requirement in Georgia is 25/50/25. How much will Wilson's liability insurance pay in this situation? A. $50,000 B. $10,000 C. $25,000 D. $20,000
C. $25,000
Norris borrows Arnold's truck to pick up some lumber from the hardware store. On the way to the store, Norris collides with a car, injuring the three people inside. The driver suffers $15,000 in injuries, one passenger suffers $25,000, and the other passenger suffers $20,000. Norris has a PAP with liability limits of 50 / 100 / 50, and Arnold's policy has liability limits of 25 / 50 / 10. How much will the primary policy pay for the injuries? A. $100,000 B. $60,000 C. $50,000 D. $25,000
C. $50,000
While adjusting the radio station, Jazmine accidentally pulls the steering wheel to the right and heads off the road, crashing into a telephone pole. She is not injured, but her car is ruined. Which coverage type can help pay for Jazmine's car even though she was at fault? A. Liability coverage B. Comprehensive coverage C. Collision coverage D. Uninsured motorist coverage
C. Collision coverage
Having purchased a very nice used car yesterday, Ian decides to drive to Cheryl's house and ask if she would like to go to the movies. On his way over, a dog runs out in front of him. Ian veers hard left to avoid the animal, but overcorrects and flips the car, causing $16,500 in damage to his auto. To make matters worse, Ian hasn't even reported the purchase to his insurer yet, and he doesn't have collision or comprehensive coverage. However, Ian need not fret too much. Why is that? A. Since Ian was on his way to see Cheryl, her homeowner's policy will cover his loss B. Comprehensive and Collision coverage automatically apply to his newly purchased car for the first 14 days after purchase C. Comprehensive and collision coverages automatically apply to his newly purchased car for the first 4 days after purchase D. Since Ian hasn't yet made his first car payment, he isn't responsible for the car
C. Comprehensive and collision coverages automatically apply to his newly purchased car for the first 4 days after purchase
Which section of a PAP would include a provision allowing the insured to suspend coverage on a vehicle for an extended amount of time? A. Part B B. Conditions C. Endorsements D. Declarations
C. Endorsements
Stan has a personal auto policy to cover his two vehicles, but he recently purchased a custom built motorcycle as well. Which type of endorsement will Stan need to cover the motorcycle? A. Two-wheeled vehicle endorsement B. Customized equipment endorsement C. Miscellaneous vehicle endorsement D. Motorcycle endorsement
C. Miscellaneous vehicle endorsement
Which of the following is NOT true of personal injury protection? A. PIP is primary coverage B. PIP restricts the policyholder's right to recover losses in civil court C. PIP is usually secondary coverage D. PIP provides no-fault protection
C. PIP is usually secondary coverage
When Stephen bundles his personal auto liability coverage with another auto insurance coverage, what can his policy be called? A. Contingent responsibility auto policy (CRAP) B. Combined auto policy (CAP) C. Personal auto policy (PAP) D. Multi-lanes auto policy (MAP)
C. Personal auto policy (PAP)
Jada has to leave her car in the shop after crashing it into a telephone pole, but she still needs to get to work and back every day. She does some research and, three days after the crash, she buys a bus pass for $85 / month. Assuming her car is in the shop for three months and she had previously purchased the additional coverage, which policy provision in Jada's personal auto policy could help cover her bus fare? A. Medical transportation B. Workers' compensation C. Transportation expenses D. Public transit endorsement
C. Transportation expenses
Suspension of insurance, towing and labor, and customized equipment are all examples of what?
Endorsements
What is the current minimum amount of liability coverage required by the state of Florida for a driver who is found to be at fault in an accident? A. 25/50/10 B. 25/10/50 C. It depends on the value of the car. D. 10/20/10
D. 10/20/10
Jared runs a red light and crashes into a car, injuring the four people inside. All five people involved in the wreck have Personal Injury Protection. Emma gets severe whiplash; Amy suffers permanent scarring on her face; Alexandra has a broken leg, and Adam is paralyzed from the waist down. Florida's no-fault law allows which of these people to sue Jared? A. Alexandra & Adam B. Adam C. Amy & Alexandra D. Amy & Adam
D. Amy & Adam
Taylor is involved in a hit and run accident. He is stunned by the encounter and doesn't get the make, model, or license plate of the hit and run offender. Which of Taylor's insurance coverages could help him pay for the damages to his car? A. Liability coverage B. Bodily injury uninsured motorist coverage C. Comprehensive coverage D. Collision coverage
D. Collision coverage
While driving to the movies, Jayden is sideswiped, and the offending driver speeds off into the night. Not wanting to miss the movie, and because his car is still drivable, Jayden continues on his way to the theater. The next day, he files a claim with his insurer for the damages. Which "duty of the insured" did Jayden fail to address? A. Jayden did not prove probable cause for the accident B. Jayden waited too long to file the claim C. Jayden did not make a reasonable attempt to catch the hit and run driver D. Jayden did not notify the police
D. Jayden did not notify the police
After a covered accident, your PIP will provide coverage for all of the following, EXCEPT: A. Medical costs for your passenger with no PIP B. Your medical costs C. Medical costs for your friend who was driving your car with permission D. Medical costs for the driver you struck
D. Medical costs for the driver you struck
PAP insurance coverage only applies in the "policy territory." Which of the following is NOT part of the policy territory? A. Hawaii B. San Juan, Puerto Rico C. Ontario, Canada D. Mexico City
D. Mexico City
In which case would the insured be indemnified by her liability coverage? A. She gets into an accident that leaves her car totaled B. None; liability coverage never indemnifies the insured C. She causes property damage to her neighbor D. She has to pay a fee to retrieve relevant court documents
D. She has to pay a fee to retrieve relevant court documents
Which of the following is NOT a nearly universal condition of a PAP policy? A. The insured must cooperate with the insurer during the investigation process B. The insured must allow the insurer to inspect a vehicle during a claims process C. The insured must file a report for hit and run accidents with the police D. The insured must actively avoid parking in high crime areas
D. The insured must actively avoid parking in high crime areas
The insuring agreement for part A - liability in a personal auto policy states that: A. The insurer will pay for "bodily injury" or "property damage" to any "insured" because of an auto accident B. The insurer will cover the costs to defend the insured in court in subsequent lawsuits related to the same occurrence, even after the policy limit is reached C. The insurer will cover the cost to defend the insured in court, up to the policy limit D. The insurer has the right to settle liability cases out of court
D. The insurer has the right to settle liability cases out of court
Define: Out of state provision
If an insured meets her home state's liability requirements, but gets into an accident out of state, it is assumed that she meets the minimum requirements of that state as well
Define: Part F - General provisions
Rules regarding cancellation or changes to the policy, subrogation, legal action against the insurer, etc.