Ch. 6: Personal Auto Policy
newly acquired auto
A vehicle for which the insured becomes the owner during the policy period and may be a replacement or additional vehicle
While driving in another state with higher coverage requirements, which of the following sections of the PAP automatically provides the required coverage?
out of state coverage
Other than Collision (OTC)
provides coverage on an open perils basis, meaning all causes of loss other than a collision loss and not excluded in policy
A ____________vehicle is a covered vehicle when Your Covered Auto is being repaired due to a covered loss.
temporary substitute
Policyholder G wants her PAP to insure her sedan, primarily used for sales calls, her husband's SUV for car-pooling, the station wagon that their daughter uses to drive to school, and the van their son uses part-time to deliver dry-cleaning. Which of the following cars will G's agent tell her is not eligible?
van
trailer
A vehicle designed to be pulled by a private passenger auto, pickup, or van
Which vehicle is covered under Part B - Medical Payments of the Personal Auto Policy? A A vehicle used for car pools B A family member's company car C A 3-wheel vehicle D A vehicle used as a residence
A
S carries a Personal Auto Policy with Liability limits of 50/100/25. What is the maximum the policy will pay if S struck another vehicle causing injury to the occupants as follows: Driver - $70,000; Passenger 1-$30,000; Passenger 2-$50,000 and property damage to the other vehicle - $20,000?
120K
Under Part D, Within how many days must an insured report the purchase of a new vehicle that is replacing an existing vehicle covered by collision coverage?
14
If an insurer non-renews an insured's policy for underwriting reasons, what is the minimum number of days' notice to the insured?
20
J has a personal auto policy with Liability limits of 50/100/25, UM/UIM limits of 50/100, a Medical Payment limit of $5,000 and Comprehensive and Collision deductibles of $500. J's vehicle slides on ice and hits a guardrail causing $9,500 in damage to the vehicle and $11,000 damage to the guardrail. J also sustains $1,000 in injuries. How much will the policy pay for all damages?
21,000; The policy will pay $11,000 in property damage under liability, $1,000 for injuries under medical payments, and $9,000 for physical damage
Under medical payments coverage, how long after an accident does the insured have coverage for resulting medical expenses?
3 years
A Medical Payments claim will be paid by the insurer within how many months from the date of the occurrence?
36
Transportation Expenses coverage under the Personal Auto Policy begins how long after a covered auto has been stolen?
48 hours
Claimant A has bodily injuries in the amount of $49,500; claimant B, $19,500; and claimant C $14,000 arising out of a 4-car accident caused by the insured, whose PAP carries limits of 25/50/10. What will the insurer pay?
50K because multiple people involved
A private passenger auto includes a leased vehicle as long as the lease contract is continuous for how many months duration?
6
Each of the following is a Part A - Liability Coverage Supplementary payment, except: A Payment for all defense costs B Premiums on appeal bonds C $200 a day for loss of earnings due to an insurer request to assist in the trial D $250 for the cost of a bail bond
A
Which of the following is covered under Part D of the Personal Auto Policy? A Water or flood damage to a convertible when the top is left down B Theft loss to a portable CD player C Damage to a van used as a livery D Damage to a radar detector
A
Which of the following is not considered 'occupying an automobile'? A Standing by the car exchanging insurance information B Closing a car door C Jumping off the trunk D Getting out of the car
A
Which of the following statements regarding the Part A limit of liability under the Personal Auto Policy is FALSE? A If the loss is covered under more than one Part of the policy, payment will be duplicated B The limit of liability is the maximum the policy will pay regardless of the number of insureds C The limit of liability is the maximum the policy will pay regardless of the number of vehicles involved in the accident D The limit of liability is the maximum the policy will pay in any one accident
A
Which of the following vehicles IS covered under Part B - Medical Payments of the PAP? A A car used to carpool with colleagues B A van used as a residence C A company car issued to a family member D 3-wheel vehicle used off-road
A
Which statement is false regarding the Personal Auto Policy? A Theft is covered under property damage liability B Uninsured Motorist Coverage is provided by Part C C The PAP provides medical payments for up to 3 years D Collision coverage will cover damage to the insured vehicle regardless of liability
A
Which of the following is not a duty of the insured if the insured's vehicle is damaged when it hit a tree? A Promptly notify the insurance company B Call the police C Submit a proof of loss D Submit to a physical exam
B
Which of the following persons cannot collect a claim payment under Uninsured Motorist coverage? A A pedestrian struck by a hit-and-run vehicle B The owner of a parked car struck by a falling object C The owner of a car struck by an uninsured motorist D The owner of a car that was struck by a vehicle whose auto carrier was insolvent at the time of the accident
B
temporary substitute
Any auto or trailer that is non-owned while being used in place of an insured vehicle which not available because of breakdown, repair, servicing, loss, or destruction
declared auto
Any vehicle shown in the Declarations
Under the Personal Auto Policy, when the insured and the insurer do not agree on the insured's legal right to recovery of damages or the amount recoverable by the insured, what system is used to resolve the disagreement?
Arbritation
An uninsured motor vehicle is any of the following, except: A A vehicle with liability limits less than the state requirement B A company car C A vehicle insured by an insolvent insurance company D A vehicle that does not have insurance
B
Comprehensive covers all of the following losses, except: A Contact with a deer B Rollover C Theft D Falling objects
B
Regarding Medical Payments under the Personal Auto Policy, the liability limit shown in the Declarations is the maximum the policy will pay for which of the following? A Each person injured during the policy term B Each person injured in any one accident C All claims during the policy term D All persons injured in any one accident
B
Which of the following damages would be covered under the Liability Coverage of the Personal Auto policy? A Damage to a rental car rented to the insured B Damage caused to a rented garage by the insured auto C Damage to property being transported by the insured D Damage to a neighbor's riding lawn mower in the care of the insured
B
Which of the following is correct regarding Other Insurance under Part A of the Personal Auto Policy? A If there is other liability coverage applicable to the insured auto, the policy will share the loss with the other policy on an excess basis B If there is other liability coverage applicable to the insured auto, the policy will pay the proportion that the limit of liability bears to the total of all limits C The Personal Auto Policy is the primary policy in all cases of duplicate coverage D There is no coverage for non-owned vehicles if there is other coverage applicable to such vehicles
B
bodily injury
Bodily harm, sickness, or disease, including death that results
After an automobile policy has been in effect for 60 days, the insurer may cancel the policy for any of the following reasons, except: A Suspension of the driver's license of the named insured's or household resident B Material misrepresentation of information on the application by the insured C Submission of four or more claims during a single policy period D Non-payment of premium
C
The limit of liability is the most paid by the insurer regardless of all of the following, except: A Premiums shown B Number of insureds C Amount of surcharges to be applied to policy D Number of vehicles involved
C
Under Part F of the Personal Auto Policy, which of the following is correct when there are two or more auto policies issued by the insurer on the same auto? A Each policy will share equally in the loss B Each policy will pay the loss independently of the other C The maximum that will be paid is equal to the limit of the policy with the higher limit of liability D This policy will be excess if the other policy is in a different insurer
C
Which of the following Part D claims would be denied under the Personal Auto Policy? A Loss to electronic ignition equipment of the covered auto B Earthquake damage to the covered auto C Loss to the covered auto caused by road damage to tires D Loss to permanently installed sound reproduction equipment of the covered auto
C
Which of the following is covered under Part C - Uninsured Motorist Coverage? A Punitive damages awarded for the insured B The insured is also covered by Workers' Compensation C Accident was caused by a hit-and-run driver D A family member is struck by an insured vehicle
C
Which of the following uses of a vehicle is not excluded under the Medical Payments coverage? A An insured drives a company car B An insured rides a motorcycle C Insured uses a truck for incidental purposes D A neighbor uses the insured's car without permission
C
Which of the following vehicles is not considered an uninsured vehicle under Part C of the PAP? A A vehicle whose coverage is denied by its insurer B A vehicle that disappears after a collision C A vehicle owned by the government D A vehicle insured for less than the state's minimum required coverage
C
Which statement is true of medical payments in a Personal Auto Policy? A Medical expenses include insured's injuries that result from racing activity B Medical payments are provided by Part A C Expenses for medical services sustained by the insured are covered D Medical expenses are paid only when the insured is legally liable
C
When an auto has two auto policies with the same insurer, the insurer's liability would not exceed:
highest limit of the two policies
What does Part D of Personal Auto Policy insure?
Coverage for Damage to your auto
All of the following are true of automobile physical damage Coverage D, except: A Damage to the insured auto that is caused by colliding with a deer would be covered under Other Than Collision coverage B It covers damage to the insured auto regardless of liability C Collision coverage usually is written with a deductible D It covers damage to the insured auto and to another auto with which it collided
D
Liability coverage under the PAP will cover which of the following? A Motorcycle B Company car C A van used to deliver newspapers D Non-owned golf cart
D
The insurer's limit of liability for a vehicle damaged by a loss under Part D is which of the following? A Replacement value B The greater of actual cash value and replacement value C Actual cash value D The lesser of actual cash value and replacement value
D
Under the Personal Auto Policy, Medical Payments coverage is provided for which of the following? A A vehicle being used in a recognized racing activity B Any person while occupying a vehicle that has fewer than four wheels C The policyholder's vehicle while it is being used as a public or livery conveyance D A passenger while occupying the covered auto
D
Which of the following claims would be insured under Uninsured Motorists Coverage? A The insured was driving his uninsured car at the time of the accident B A thief stole the insured's car and was paralyzed after being struck by a drunk driver C An insured is sued and the other party is awarded an injury settlement and punitive damages D The insured's resident son suffered severe injuries after being rear-ended by an uninsured driver
D
Which of the following statements is not true about a claim payment for a collision loss under the PAP? A An insurance company can decide whether to pay cash for, replace, or repair the vehicle B A claim payment will include any applicable sales tax C An insurance company may choose to keep or return a recovered stolen car D If the insurer recovers and returns stolen property to the insured, no further payment is due
D
What does Part F of Personal Auto Policy insure?
General Provisions
Two or More Policies
If two or more policies issued by the same insurer apply to the same accident, the maximum limit of liability that will be paid will not exceed the policy with the highest limit
What does Part A of Personal Auto Policy insure?
Liability Coverages
What does Part B of Personal Auto Policy insure?
Medical Payments
Private Passenger Auto
Shall be deemed to be owned by a person if the auto is owned or leased under contract for a continuous period of at least 6 months
The limit of liability of Coverage D, Damage to Your Auto, under the Personal Auto Policy states that:
The limit of liability is the lesser of the actual cash value (ACV) of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality
You and Your
The named insured listed in the declarations, and the spouse if a resident of the same household. The named insured should always be the person or persons to whom the vehicle is titled and registered, unless it's a leased vehicle
Collision
The upset of the covered vehicle or a non-owned auto, or its impact with another vehicle or object, such as a tree
he Legal Action Against Us under Part F - General Provisions of the Personal Auto Policy, states what?
legal action can't be brought against insurer until the insured has complied with all the terms of the policy
T/F: Bankruptcy or insolvency of an insured does not relieve the insurer of its obligations under the policy
True
What are the Territorial Limits of the Personal Auto Policy?
USA and its territories, Puerto Rico, and Canada
What does Part C of Personal Auto Policy insure?
Uninsured Motorist (UM)
What does Part E of Personal Auto Policy insure?
duties after an accident or loss
The Miscellaneous Type Vehicle Endorsement attached to a Personal Auto Policy allows eligibility of a motorcycle by
amending the definition of "your covered auto" to include any misc. type vehicle
Under Part D - Coverage for Damage to Your Auto of the Personal Auto Policy, vehicle upset would be covered under:
collision
Physical damage to the insured auto that is not covered under collision, and is not otherwise excluded, would be covered under:
comprehensive
What is the purpose of the Extended Non-Owned Coverage for a Named Individual endorsement?
covers non-owned vehicles furnished for the insured's regular use (ex. rental car)