CH. 6 Personal Auto Policy

Supplementary payments under Part A of the Personal Auto Policy will pay which of the following? A. Doctor bills when the insured is injured in an auto accident B. $250 for bail bonds C. A judgment against the insured in excess of liability limits D. Loss of earnings when the insured is disabled

$250 for bail bonds Of the items listed, only $250 for bail bonds is a supplementary payment.

A leased auto is an eligible vehicle if the lease contract is for a continuous period of at least ___________ months. A. 3 B. 6 C. 9 D. 12

6 A leased vehicle under a contract for a continuous period of at least 6 months by the insured is an eligible vehicle.

Which of the following is not covered under Uninsured Motorist Coverage? A. A vehicle that is used for hire B. Family members C. A friend occupying the insured auto D. Passengers

A vehicle that is used for hire A taxicab or other vehicle for hire is not eligible for coverage.

Choose the vehicle that is not considered an uninsured motor vehicle. A. A vehicle insured by an insolvent insurer B. A hit and run vehicle C. A vehicle without a liability policy D. A vehicle used as a residence

A vehicle used as a residence A vehicle while located for use as a residence would not be an uninsured vehicle.

Which of the following is not included in the definition of a covered auto in the Personal Auto Policy? A. An additional auto that was purchased by the insured two months ago B. An auto used by the insured while his is being repaired C. An auto leased by the insured for at least 6 months D. The automobile that is described in the Declarations

An additional auto that was purchased by the insured two months ago Automatic coverage for newly acquired vehicles is 14 days.

Bob had a Personal Auto Coverage Form with liability limits of 100/300/50. In an accident for which Bob was liable, there were BI claims in the amounts of $80,000; $105,000; $115,000; and PD claims of $20,000 and $35,000. How much will his policy pay? A. $300,000 BI and $50,000 PD B. $280,000 BI and $50,000 PD C. $280,000 BI and $50,000 PD, less the insurer claim expenses D. $300,000 BI and $50,000 PD, less the insurer claim expenses

BI = $80,000+100,000+100,000 = 280,000; P. D. = maximum of $50,000. Liability Limits: 100 PER PERSON 300 PER ACCIDENT 50 PROPERPERTY BI 80,000+100,000+100,000= 280,000 PD 20,000+35,000=55,000 (Limit for property 50,000)

Which statement is false regarding uninsured motorist coverage under a Personal Auto Policy? A. Coverage includes someone using the vehicle without permission B. A covered person means the named insured, family members and any other person occupying the covered auto C. Coverage does not apply to any vehicle being used to carry property or persons for a fee D. Coverage does not apply to a vehicle used primarily for use off public roads

Coverage includes someone using the vehicle without permission Coverage does not apply when a person is using the vehicle without permission.

Which of the following is a true statement about the Named Non-owner endorsement? A. Does not meet the state's financial responsibility law requirements B. Does not apply if the insured rents vehicles C. Covers only the person named on the endorsement D. Provides only Liability coverage

Covers only the person named on the endorsement This endorsement is for a person who does not own a car, but often borrows or rents a car and wants to assure personal coverage for liability, medical payments, and UM.

The definition of Bodily Injury in the Personal Auto Policy includes which of the following? A. Defamation of character B. Physical injury to, destruction of, and loss of use of tangible property C. False arrest D. Bodily harm, sickness or disease, including death that results there from

D. Bodily harm, sickness or disease, including death that results there from

Choose the false statement about automobile liability coverage. A. It may be written either split or single limit B. It protects the insured for losses when the insured is legally liable C. It provides third party protection D. It is written on an aggregate limit basis

D. It is written on an aggregate limit basis

The Limit of Liability under Medical Payments in the Personal Auto Policy is shown in the Declarations as the maximum the policy will pay for which of the following? A. Each person injured in any one accident B. All persons injured in any one accident C. All claims during the policy term D. Each person during the policy term

Each person injured in any one accident The Medical Payments limit is a per person limit that applies to each accident.

All of the following are false about Damage to Your Auto, except: A. Coverage includes the cost to repair previous damage if required to fix new damage B. The Limit of Liability is the greater of the vehicles actual cash value or the cost to repair C. In the event of total loss, adjustment will be made for the physical condition of the vehicle D. The sales tax on a replacement vehicle is not covered

In the event of total loss, adjustment will be made for the physical condition of the vehicle The physical condition of the vehicle is considered in the event of a total loss.

All of the following are true of automobile liability coverage, except: A. It may be written either split or single limit B. It protects the insured for losses when the insured is legally liable C. It provides third party protection D. It is written on an aggregate limit basis

It is written on an aggregate limit basis Aggregate limits do not appear in personal auto policies.

Choose the physical damage claim that is covered under the Personal Auto Policy. A. Malicious mischief to the tires B. Loss due to war C. Mechanical breakdown D. Loss due to radioactive contamination

Malicious mischief to the tires This is covered under Other Than Collision. The other items are excluded.

Coverage for recreational vehicles can be added to the Personal Auto Policy by the: A. Recreational Vehicles Endorsement B. Miscellaneous Type Vehicle Endorsement C. Cross Terrain Endorsement D. Cross Country Endorsement

Miscellaneous Type Vehicle Endorsement The Miscellaneous Type Vehicles coverage includes recreational vehicles.

Which of the following vehicles is covered by Liability coverage under the Personal Auto Policy? A. Company car B. Non-owned golf cart C. Uninsured owned vehicle D. Motorcycle

Non-owned golf cart Vehicles designed mainly for use off public roads, other than non-owned golf carts, are excluded.

All of the following are true of supplementary payments under Part A of the Personal Auto Policy, except: STUDY STUDY A. It pays up to $250 for the cost of bail bonds B. It pays up to a specific daily limit for lost earnings while you assist with your defense C. It will pay other reasonable expenses incurred at the insurer's request D. Payments are deducted from other limits of liability

Payments are deducted from other limits of liability Payments are deducted from other limits of liability

Which statement is true of medical payments in a Personal Auto Policy? A. Reasonable expenses incurred for necessary medical and funeral services sustained by the insured are covered under medical payments in a Personal Auto Policy B. Bodily injury must accompany medical payments coverage C. It pays medical expenses only when the insured is legally liable D. Medical expenses include insured's injuries that occur in a recognized racing activity

Reasonable expenses incurred for necessary medical and funeral services sustained by the insured are covered under medical payments in a Personal Auto Policy Coverage applies to any occupant of the insured vehicle and also to members of the insured's household as pedestrians when struck by a motor vehicle or as an occupant of another person's vehicle.

Occupying an automobile is not considered which of the following? A. Getting out of the car B. Standing by the car exchanging insurance information C. Jumping off the trunk D. Slamming fingers in a closing door

Standing by the car exchanging insurance information Occupying means in or on a vehicle which includes getting in, getting out, and jumping off.

The insurer's liability would not exceed which of the following in the event an auto is insured by two automobile policies with the same insurance company? A. The highest limit of the two policies B. The limit of the first one purchased C. The combined limit of the two policies D. The limit of the last one purchased

The highest limit of the two policies Coverage will not be duplicated, so the policy with the highest limit applies.

Which statement is false regarding medical payments under a Personal Auto Policy? A. The named insured and family members are covered if injured while occupying any auto B. The named insured and family members are covered if injured as pedestrians C. Persons other than the named insured and family members must be occupying the insured auto in order to be covered D. The policy limit applies per occurrence

The policy limit applies per occurrence Auto medical payments coverage has a per person limit.