Unit 8 Personal Auto Insurance

Lisa is injured by a hit and run driver while driving her on a work related errand. Assuming she carries a $100,000 limit for uninsured motorist coverage, how much of the $125,000 in medical expenses would Lisa be paid under her personal auto policy? A. $0 B. $75,000 C. $100,000 D. $125,000

A. $0 An insurer will not pay any part of a loss that could be covered under workers' compensation law. If Lisa was driving her car and this same accident occurred while she was not working, the loss would be paid. $100,000 would be paid for bodily injury per person.

Which of the following terms states that the company will pay only its share of a loss that is also covered by other insurance? A. Other insurance B. Out of state coverage C. Limits of liability D. Underinsured motorist

A. Other insurance

Michael loses control of his car and hits a parked car. Which coverage of Michael's personal auto policy will pay for the damage to the parked car? A. Part A B. Part B C. Part C D. Part D

A. Part A

Which of the following is considered a collision loss? A. An automobile is swept away in flood waters. B. A bird flies into the windshield of an auto C. An automobile is stolen from a parking lot D. An automobile flips over an embankment on its side

D. An automobile flips over an embankment on its side

Which of the following losses would NOT be excluded under Coverage A of the personal auto policy? A. Bill uses his car as a taxicab on the weekends. One evening, he hit a parked car while pulling in a driveway to pick up a passenger B. Out of anger and intentionally, Julia rear ends her brother's car causing damage to the bumper C. Justin hits a pedestrian after running a red light with his motorcycle D. Denise's 16-year-old son hits a parked car while on his way to school to pick up his siblings.

D. Denise's 16-year-old son hits a parked car while on his way to school to pick up his siblings.

Which dispute method takes place when the insured and insurance company cannot agree on the amount to be paid by the uninsured or underinsured motorist coverage? A. subrogation B. meditation C. arbitration D. settlement

C. arbitration

The term occupying means all of the following EXCEPT A. in a vehicle B. upon a vehicle C. owning a vehicle D. getting into, onto, out of, or off of a vehicle

C. owning a vehicle

An insured has to testify in court at the insurance company's request. What is the amount of reimbursement that the insured can receive for loss of earnings due to the time spent in court? A. Up to $250 a day B. Up to $100 a day C. Up to $500 a day D. Up to $50 a day

A. Up to $250 a day

Tim and Michelle were both injured when they were struck by a car while walking across the street. The driver, who could not be identified , left the scene of the accident. Would this loss be covered under Tim and Michelle's personal auto policy? A. Yes, it would be covered under Part C uninsured motorist coverage B. Yes, it would be covered under Part C- underinsured motorist coverage C. No, it would not be covered since the drive could not be identified D. Yes, it would be covered under Part A- liability coverage

A. Yes, it would be covered uner Part C uninsured motorist coverage

Under Part D of the personal auto policy, a temporary substitute auto is considered A. a nonowned auto B. a covered auto C. an owned auto D. a no-fault auto

A. a nonowned auto

An automobile insurance plan for drivers with poor driving records is also known as A. an assigned risk plan B. a termination plan C. a high risk plan D. a subrogation plan

A. an assigned risk plan

If the insured's policy pays for bodily injury (BI) or property damage (PD) caused by an uninsured motorist, the insurance company has the right to sue the unisured motorist for the damages it paid. This is also known as A. subrogation B. meditation C. arbitration D. settlement

A. subrogation

How many days after purchase does an insured have to request that a new car is added to her personal auto policy? A. 10 B. 14 C. 20 D. 30

B. 14

Part B covers reasonable expenses for necessary medical and funeral services incurred within how many years of the date of the injury, regardless of fault? A. 1 B. 3 C. 5 D. 10

B. 3

Which of the following terms means bodily harm, sickness, or disease, including death? A. Personal injury B. Bodily injury C. Property damage D. property injury

B. Bodily injury

Which of the following statements regarding uninsured motorist coverage is NOT correct? A. It pays the difference between in insured's actual damages and the amount the insured was able to collect B. It is mandatory in all states C. This coverage indemnifies the insured for bodily injury and property damage. D. This minimum financial responsibility limit imposed by most states often falls short of fully reimbursing the insured for a loss

B. It is mandatory in all states

Lee was injured when she lost control of her car and hit a guardrail. Which part of her personal auto policy will cover her medical expenses? A. Part A B. Part B C. Part C D. Part D

B. Part B

The personal auto policy considers a newly acquired car to be A. a nonowned auto B. a covered auto C. an owned auto D. a no-fault auto

B. a covered auto

In addition to collision and Other than Collision coverage, Part D provides coverage for up to $20 a day, with a maximum of of $600 for A. nonowned autos B. transportation expenses for collision C. physical damage coverage D. underinsured autos

B. transportation expenses for collision

Which of the following autos owned by the named insured could NOT be covered under the personal auto policy for losses occurring from physical damage or liability? A. A pick-up truck used on the insured's farm B. A sedan that the insured's licensed children drive on occasion C. A station wagon used to make deliveries for the insured's small business D. A small trailer designed o be pulled behind by a car

C. A station wagon used to make deliveries for the insured's small business

During a storm, a tree branch fell on Tina's car and broke the windshield. Which coverage of her personal auto policy will cover the damage to the car? A. Part B B. Part C C. Collision coverage of Part D D. Other than Collision coverage of Part D

D. Other than Collision coverage of Part D

Which of the following individuals would not be covered under Coverage B - medical payments coverage? A. The named insured who was driving the car B. The family members of the named insured C. Passengers in the named insured's car D. Passengers in the car that the named insured hit in a collision

D. Passengers in the car that the named insured hit in a collision