Auto Insurance: Personal and Commercial
An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured $4,000 for the first passenger and $8,000 for the second passenger. How much will the policy pay under medical payments coverage???
$14,000 (5,000 limit per person)
Tom's Truck Service's vehicle is stolen. The policyholder may obtain coverage for transportation expenses subject to what limits?
$20 per day; $600 max
What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsements?
$25
An insured hits a deer and crashes his car into a tree. The total damage to the vehicle is $6,000. How will this loss be covered?
$6,000 would be paid under other-than-collision coverage.
An insured has a personal auto policy with both comprehensive (other-than-collision) and collision coverage. His car is stolen and recovered five days later. If the insured claims transportation expenses of $20 per day, how much will his policy pay?
$60 the policy will pay $20 per day after 48 hours, not to exceed 30 days in total.
In the split limit coverage in personal auto policies, which limit indicates the maximum amount the policy will par for bodily injury per person?
1st limit
Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period?
3 years
An insured has an auto liability policy with limits of 25/50/15. The insured is involved in an accident caused by her negligence and is held legally liable for bodily injuries of 3 persons in the other auto. How much will her insurer pay in total for all injuries?
50,000
An insured owns and operates a ranch. The insured has several vehicles that are used in the ranching operation and for personal use. What would NOT be insured under a personal auto policy?
A two-ton grain truck with a 6,500 capacity (limit is 10,000 for GVW)
An uninsured motor vehicle includes all of the following EXCEPT A. A vehicle being used for public livery B. The accident was a hit-and-run C. The insurance company denies coverage D. The vehicle has no liability bond or insurance in force
A. A vehicle being used for public livery
All of the following are true regarding physical damage coverage EXCEPT A. The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle B. Losses to nonowned autos will be covered the same as the broadest coverage available for any covered auto, except nonowned trailers are limited to $1,500 C. The policy will pay up to $20 per day up to a max of $600 for rental transportation D. The insurer will pay for direct and accidental los to a covered auto minus any applicable deductible
A. The limit of liability is greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle.
In a personal auto policy, the medical payments coverage is similar to....
Accident insurance, because it pays medical expenses regardless of fault
Which of the following would NOT qualify as a hired auto?
An auto borrowed from an employee
Under a personal auto policy, in what locations would a vehicle primarily garaged in California be covered?
Any other state
While an insured's covered auto is in the repair shop following damage caused by a collision, the insured would have coverage for which of the following vehicles under a personal auto policy?
Any vehicle not owned by the insured, but furnished for use while the covered auto is out of normal use because of repair
What would be considered an insured under a business auto coverage form?
Anyone while using, with permission, a covered auto owned by the name insured
With respect to the personal auto policy, which of the following vehicles could be classified as a nonowned auto? A. A vehicle rented for the insured's personal use B. A vehicle that is titled to another person, but is being used with permission by an insured C. A vehicle leased to the name insured for 12 months by a leasing company D. A vehicle that is titled and insured by the name insured, but is driven principally by the named insured's son, who is a resident of the household
B. A vehicle that is titled to another person, but is being used with permission by an insured
With regards to the personal auto policy, in the event of a claim or loss, the insured is required to do all of the following EXCEPT A. Promptly contact the police if the accident was a hit-and-run B. Immediately report to an emergency room for medical examination C. Notify the insurer as soon as possible with a description of the accident D. Protect the insured auto from further damage
B. Immediately report to an emergency room for medical examination
The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT A. A friend is injured while driving the insured's vehicle with permission B. The insured is injured while exiting a friend's mobile home C. The insured is injured by a motor vehicle while crossing the street D. The insured's child sustains injuries when the car she is in accidentally rolls down a hill
B. The insured is injured while exiting a friend's mobile home
What would NOT be covered under the liability section of a personal auto policy?
Bodily injury is caused by the insured's negligence while driving a three-wheel all-terrain vehicle
Which one of the following symbols used in a business auto coverage is correctly described? A. Symbol 2 - owned autos subject to no-fault B. Symbol 7 - hired autos only C. Symbol 9 - nonowned autos only D. Symbol 1 - owned auto only
C. Symbol 9 - nonowned autos only
All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT A. Premiums on appeal bonds in any suit the insurer defends. B. Up to $250 for bail bonds required because of a covered accident C. Up to $100 for the cost to secure the release of a vehicle from an impounding lot following a covered accident D. Up to $200 a day for loss of earnings due to attendance at hearing or trials
C. Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident
An insured was involved in an automobile accident for which the insured was at fault. Which of the following coverages would pay for damage to the insured's automobile?
Collision
The designation symbols used in commercial auto policies can be found in what policy section?
Covered auto
If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT A. Uninsured motorist B. No-fault medical payments C. Liability D. Physical damage
D. Physical damage
All of the following are parts of a personal auto policy EXCEPT A. Medical payments coverage. B. Duties after an accident or loss. C. Liability coverage. D. Physical damage coverage
D. Physical damage coverage
An employee drives a company auto, but does not own a vehicle herself. What endorsement could be added to the insurance policy covering the company auto that would provide coverage to the employee when she drives someone else's car for her personal use?
Drive other car coverage
What endorsement is used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle?
Individual named insured
Extended nonowned coverage endorsement in a PAP broadens what coverages?
Liability and medical payments
What personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss?
Liability coverage
An insured is driving her automobile and strikes a large pothole that causes a flat tire. Which coverage of the insured's personal auto policy will pay for the repair?
Loss is not covered
A restaurant is out of business for 3 days after an insured's automobile hits an electrical pole. The pole falls and hits the building, knocking out all electrical power supply. What is NOT covered under the insured driver's auto?
Lost revenues from the restaurant
A meteorite hits the insured's car, causing damage. Under which of the following coverages in a personal auto policy would this loss be paid?
Other-than-collision
While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store?
Property damage liability
Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is
Provided by the insured's policy on an excess basis
What is covered under the physical damage coverage of a personal auto policy?
Sound reproduction equipment permanently installed in the covered auto
What symbol is available to an insured with vehicles subject to no-fault coverage?
Symbol 5
What section of a commercial auto policy will you find specific information about the policy period?
The conditions
What is true regarding a mobile equipment endorsement in commercial auto policies?
The endorsement is available for additional premium
What losses would be covered under the property damage liability coverage of a personal auto policy?
The insured damages a rented garage when he failed to stop in time
What circumstance would be EXCLUDED under medical payments coverage of a personal auto policy?
The insured is injured while driving his motorcycle on his resident premises
Who is NOT an insured for liability on a BAP?
The owner of a car the insured borrows
When a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy?
They do not change
A trucking business swaps trailers with other carriers. What coverage is necessary to cover loss to the other's trailer while in the borrower's possession?
Trailer interchange coverage
In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for
Uninsured motorist coverage
What is business auto coverage territory for?
United States and its territories, Canada, or worldwide for private passenger hired autos
Under the business auto coverage form, mobile equipment is covered for liability insurance
When being carried or towed by a covered auto
When would uninsured motorist coverage apply?
When the other party is legally liable but has no insurance
The bankruptcy provision found in the personal auto policy states that bankruptcy of the insured
Will not relieve the insurer of its policy obligations
