Chapter 6- Auto Policy
Which of the following is not considered an uninsured motorist vehicle under the Personal Auto Policy?
A -vehicle insured by a bankrupt insurance company B-A vehicle for which there is no liability policy C-A vehicle newly acquired by the named insured that has not been reported to the insurer D-A hit and run vehicle C- A vehicle owned by the insured would not fit the definition of an uninsured vehicle.
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?
A- $125,000 B- $170,000 C- $120,000 D- $150,000 C- Coverage is as follows: Driver - $50,000; Passenger 1 - $30,000; Passenger 2 - $20,000, since the policy will only pay $50,000 per person and a total of $100,000 per accident. The property damage is fully covered, totaling $120,000.
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?
A- $21,000 B-$21,500 C-$9,500 D-$11,000 A- The policy will pay $11,000 in property damage under liability, $1,000 for injuries under medical payments, and $9,000 for physical damage after the deductible is met, totaling $21,000.
The Limited Mexico coverage provides coverage for how many miles into Mexico?
A- 10 miles B-100 miles C-50 miles D-25 miles The limit is 25 miles and the endorsement also applies only if the insured's visit to Mexico is for 10 days or less.
Transportation Expenses Coverage under Part D of the Personal Auto Policy begins how long after the covered auto has been stolen?
A- 72 hours B- 24 hours C- Immediately D- 48 hours D- Transportation Expenses Coverage pays $20 per day, up to $600, for transportation expenses incurred due to loss of the covered auto. Coverage begins 48 hours after a theft.
Under Uninsured Motorist Coverage of the Personal Auto Policy, which of the following would be an insured?
A- A family member, occupying an insured auto struck by an uninsured vehicle B-A family member occupying an uninsured auto C- The operator of an uninsured motor vehicle involved in an accident with the insured D- The owner of an uninsured motor vehicle involved in an accident with the insured A- Uninsured Motorists Coverage provides liability coverage for an uninsured vehicle involved in an accident with an automobile occupied by the insured or a family member. However, it provides no protection for the owner or operator of the uninsured auto.
The Personal Auto Policy may be used to insure all of the following, except:
A- A farm pickup B-A station wagon C-A motorcycle D-A conversion van C- Motorcycles may not be covered under the PAP.
Which of the following vehicles IS covered under Part B - Medical Payments of the PAP?
A- A van used as a residence B- 3-wheel vehicle used off-road C- A company car issued to a family member D- A car used to carpool with colleagues D- A share-the-expense vehicle is not considered a public or livery conveyance, and is therefore not excluded under the policy.
Under the Personal Auto Policy, medical payments do not apply to passengers occupying which of the following?
A- A van used in the insured's business in the course of employment B- A van being used for shared car pools C- A newly acquired vehicle D- A non-owned vehicle A- Workers' Compensation coverage is an exclusive remedy for injuries incurred in the course of employment. Therefore, these injuries are excluded under Medical Payments coverage.
Which of the following is not eligible for coverage under the Personal Auto Policy?
A- A vehicle being used in a share-the-expense carpool B-A van weighing 5,200 pounds C-A vehicle with fewer than four wheels D-A pickup C- The Personal Auto Policy does not provide liability coverage for vehicles with less than four wheels or designed for off-road use, except under certain circumstances.
Which of the following is not considered an uninsured motorist vehicle under the Personal Auto Policy?
A- A vehicle insured by a bankrupt insurance company B-A hit and run vehicle C-A vehicle newly acquired by the named insured that has not been reported to the insurer D-A vehicle for which there is no liability policy Check Answer C- A vehicle owned by the insured would not fit the definition of an uninsured vehicle.
A Personal Auto Policy is designed to cover:
A- An individual's or family's personal use of an auto B- The use, by an individual and/or spouse only, of a personal automobile C- Personal and commercial autos that are owned by an individual or family D- Only the non-business use of a personal automobile A- The Personal Auto Policy is designed for insuring individuals and families. A private passenger automobile used for business purposes is eligible, but commercial automobiles are not eligible.
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?
A- Arbitration B-Compromise C-Subrogation D-Financial Responsibility A- The policy allows arbitration of a disagreement between the insurer and the insured as to whether that insured is legally entitled to recover damages, or as to the amount of damages recoverable.
Under the PAP, a temporary substitute would be covered if used:
A- Because the insured's auto is an automatic, and their daughter wants to learn to drive manual B-While an insured auto needs servicing C-To test drive new models D-To pick up a new refrigerator that will not fit in the family car B- A temporary substitute is a covered auto as long as an owned car is out of normal use due to breakdown, repair, servicing, loss, or destruction.
Which type of standard policy includes coverage options that would not exclude damage by flood?
A- Commercial Property B-Dwelling C-Personal Auto D-Homeowners C- Part D - Coverage for Damage to Your Auto covers flood, including flash flood.
Which statement is true of medical payments in a Personal Auto Policy?
A- Expenses for medical services sustained by the insured are covered B-Medical expenses include insured's injuries that result from racing activity C-Medical payments are provided by Part A D-Medical expenses are paid only when the insured is legally liable A- 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.
The Legal Action Against Us under Part F - General Provisions of the Personal Auto Policy, states which of the following?
A- Legal action brought against the insurer must be brought within 180 days of the loss B- Legal action against the insurer is permitted only when arbitration is unsuccessful C- Legal action may not be brought against the insurer until the insured has complied with all the terms of the policy D- Legal action brought against the insurer must be brought within 90 days of the loss C- The insured first must comply with all the terms of the policy before any legal action may be taken against the insurer.
A bird hits and breaks a windshield of an insured vehicle. This is covered under which of the following coverages of the PAP?
A- Liability B-Collision C-Other than collision D-Supplementary payments C- Coverage for collision with a bird or animal is provided under Other Than Collision coverage.
Part D of the Personal Auto Policy provides which of the following coverages?
A- Liability Coverage B-Coverage for Damage to Your Auto C-Underinsured Motorists Coverage D-Medical Payments Coverage B- Part D of the Personal Auto Policy includes Collision and Other Than Collision coverages.
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-Loss to permanently installed sound reproduction equipment of the covered auto C-Earthquake damage to the covered auto D-Loss to the covered auto caused by road damage to tires D-While the insuring agreement of Part D is very broad, many perils are excluded, including wear and tear, freezing, mechanical or electric breakdown, or road damage to tires.
Coverage for recreational vehicles can be added to the Personal Auto Policy by the:
A- Miscellaneous Type Vehicle Endorsement B-Named Non-Owner Endorsement C-Recreational Vehicles Endorsement D-Cross Terrain Endorsement A- The Miscellaneous Type Vehicles coverage includes recreational vehicles.
The Personal Auto Policy applies:
A- Only in the U.S. and its territories B-Anywhere in the world C-Only in the U.S., its territories, Canada, and Puerto Rico D-Only in the U.S., its territories, Canada, Puerto Rico, and Mexico C- Coverage does not extend to Mexico except on an excess basis with restrictions.
Which of the following is not considered 'occupying an automobile'?
A- Standing by the car exchanging insurance information B- Jumping off the trunk C-Getting out of the car D- Closing a car door A- Occupying means being in or on a vehicle which includes getting in, getting out, and jumping off.
Which of the following is included in the Personal Auto Policy's coverage territory?
A- The U.S., its territories, Canada, Puerto Rico, and Mexico B-Anywhere location worldwide C-The U.S., its territories, Canada, and Puerto Rico D-The U.S. and its territories only C- The policy only provides coverage for accidents and losses that occur during the policy period and within the policy territory. The policy territory is the United States of America, its territories and possessions, Puerto Rico, and Canada, and while being transported between their ports. Mexico is NOT in the policy territory.
Which of the following is FALSE about a claim payment for a Part D under Personal Auto?
A- The insurance company can decide whether to pay cash or repair the vehicle B-If the insurer returns a stolen car to the insured, it doesn't have to pay claims for vehicle damage C-The insurance company can keep or return a stolen car D-The claim payment will include any applicable sales tax B- If the insurance company returns a stolen car to the insured, it must pay for any damage that occurred as a result of the theft.
Choose the true statement regarding Out of State Coverage in the Personal Auto Policy.
A- The insured should be sure that the liability limits of the policy equal or exceed the minimum limits of the compulsory insurance or financial responsibility laws of any other state where the vehicle might travel B When being used in any state other than the one in which the vehicle is licensed, the liability limits are automatically the minimum financial responsibility limits of the state in which the vehicle is licensed C The limit of liability will be the same as the coverage provided in the home state or the minimum liability requirements in the state where the covered auto is being used, whichever is greater D The liability limits of the policy will be the lesser of home state coverage or the minimum liability requirement of the state in which the vehicle is being used C- The limit of liability will be the same as the coverage provided in the home state or the minimum liability requirements in the state where the covered auto is being used, whichever is greater
Physical damage to the insured auto that is not covered under collision, and is not otherwise excluded, would be covered under:
A- Transportation Expenses B- Named perils C- Comprehensive D-Property Damage Liability C- The Other than Collision coverage, also known as Comprehensive, provides coverage for damages not caused by collision and not excluded in the exclusions.
Which of the following is not a Supplementary Payment under Part A of the Personal Auto Policy?
A- Up to $250 for the cost of bail bonds B-Reasonable expenses incurred at the insurer's request C-Medical payments for an occupant of an insured vehicle D-Payment for lost earnings up to $200/day C- Medical payments are paid out of Part B of the policy and are not considered Supplementary Payments.
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 in any one accident B-All claims during the policy term C-All persons injured in any one accident D-Each person injured during the policy term A- The Medical Payments limit is a per person limit that applies to each accident.
Which of the following are the Territorial Limits of the Personal Auto Policy?
A-The United States, its territories and possessions, Canada, and Mexico B-The United States, Puerto Rico, Canada, and Mexico C-The United States, Mexico, and Canada D-The United States, its territories and possessions, Puerto Rico, and Canada D- The policy covers only accidents and losses that occur within the Policy Territory. Mexico does not fall within the policy territory as the policy is written.