Auto Insurance

UM coverage under PAP pays for: a. damage to the insured's car caused by a hit and run driver b.injury to a pedestrian caused by the insured c. none of the above d. bodily injury to the insured caused by a hit and run driver

d

An insured purchases Extended PIP; this changes his medical reimbursement to: a. 100% b. a higher dollar limit c. 80% d. 60%

a

Which of the following is a "defined motor vehicle" under Florida No-Fault Law? a. golf cart b. Public transit bus c. 9,500 pound SUV d. Motorcycle

c

An insured buys mechanical breakdown coverage on his NEW car. For what length of time and mileage will he have coverage? a. 12 months/ 12,000 miles b. 36 months/ 36,000 miles c. 24 months/ 24,000 miles d.36 months/ 12,000 miles

b

An insured has basic PIP with no deductible. In an accident he incurs medical bills of $8,000, 1,000 in lost wages, and $500 in replacement services. How much will PIP portion of policy pay? a. $7,500 b. $9,500 c. $6,400 d, $8,000

a

Joe has 10/20/10 liability limits, and he borrows Sue's car. Sue has 15/30/15 limits of liability. Joe injures a pedestrian while driving Sue's car and the pedestrian's medical bills due from liability total $22,000 (PIP & Med Pay are exhausted). How much is paid from Liability? a. Sue's policy pays $15,000 & Joe's policy pays $7,000 b. Sue's policy pays $11,000 &Joe's policy pays $11,000 (pro-rata) c. Sue's policy pays $15,000 & Joe's policy pays $10,000 d. Sue's policy pays $7,000 & Joe's policy pays $15,000

a

The Financial Responsibility Law may be satisfied by which of the following? I. Buying liability auto insurance in the amount of 10/20/5 split limits II. Buying liability auto insurance in the amount of 10/20/10 split limits III. Buying liability auto insurance in the amount of $30,000 single limit a. II and III only b. I only c. II only d. I and II only

a

Which of the following statements is FALSE concerning No-Fault Auto Insurance? a. Negligence must be established b. It covers insured's resident relatives c. There is no complete immunity under Florida's No Fault Law d. It covers loss of income

a

An insured and his spouse have two cars insured under a Personal Auto Policy. What coverage is available for a car that the wife borrows from a friend to use for the weekend? a. there is no automatic coverage b. the borrowed car would have the broadest coverage available on the policy c. the coverage would extend to the borrowed car if notifies her insurer prior to use d. the borrowed car would have the same coverage as the least covered vehicle

b

An insured had an accident in another state that required liability limits of 25/50/10. Our insured had 10/20/10 limits. What happens if the liability he incurs exceeds 10/20/10? a. Our insured's license will be revoked since he did not comply with the other state's requirements b. Our insured's policy will respond to the higher limit of the other state c. Our insured's policy will pay up to 10/20/10 limits and insured will be responsible for any balance d. None of the above

b

An insured has "stacked" UM with 25/50 limits on each of 2 vehicles that he owns. How much UM coverage is available to the insured in the event of an accident with a hit & run driver? a. 25/50 b.50/100 c. 10,000 d. Not covered in this case

b

An insured has a Personal Auto Policy for his car, but uses a company car regularly. What endorsement should his agent recommend to make sure the insured's PAP would respond if necessary? a. Named non-owned b.Extended non-owned c. Miscellaneous type vehicle d. Extension coverage

b

An insured took his TV to a shop for repairs. On the way, he stopped suddenly and the TV fell off the seat, breaking the TV. How will his PAP respond? a. The PAP will pay ACV for the TV damage b. The PAP will not respond c. The PAP will respond under physical damage section minus deductible d. The PAP will pay Replacement Cost for the TV

b

If a person must furnish a SR-22, and does not own an auto, what should they purchase? a. A physical damage policy b. A Named Non-owner policy c. An extension of liability policy d. A waiver of auto liability policy

b

On an auto policy, the Company may cancel for any reason (except discrimination) during the first: a. 30 days b. 60 days c. 90 days d. At end of policy period before first renewal

b

An auto accident results in liability claims of $15,000 for property damage and bodily injury of $17,500 to a single person. Which policy affords more coverage? a. A split limit policy of 25/50/10 b. A single limit policy of $30,000 c. A split limit policy of 25/50/15 d. All would pay the same amount

c

An insured borrows his neighbor's utility trailer to pick up his Christmas tree. Which of the following best describes the coverage from the insured PAP if he has an accident? a. His auto is insured, but not the borrowed trailer b. The liability of the PAP extends to the trailer, but no physical damage coverage c. His PAP will extend liability to the trailer and physical damage will extend $1,500 of coverage for damages to the borrowed trailer d. His PAP will extend coverage only if proper endorsement is obtained

c

An insured had an accident and his car was rendered inoperable. The body shop loaned him a temporary replacement vehicle. IF he has an accident, how will his own PAP respond? a. His PAP will not respond b. His PAP will respond if he has it endorsed with "named non-owned" c. His PAP would respond since he has coverage for temporary use of a vehicle while his auto is being repaired d. His PAP would respond if he called his agent and made formal notice and added temporary use vehicle to his policy

c

An insured's golf clubs are stolen from the trunk of his car. Which policy would respond? a. Personal Auto coverage b. Insured's PIP would respond c. Homeowner's is the place to look for coverage d. Liability section of PAP would respond

c

Nonresidents must comply with the Florida No Fault law: a. They do not ever come under this law b. if their auto is in Florida 30 consecutive days c. if their auto is in Florida over 90 of the last 365 days d. if they are driving in Florida

c

Which of the following is FALSE concerning Uninsured Motorist coverage (UM)? a. Can purchase UM amounts equal to liability limits b. Can purchase UM amounts less than liability limits c. Can purchase UM without purchasing liability d. Insurers must notify insureds of UM options available

c

Your insured has purchased the minimum split policy that meets Financial Responsibility Law in Florida. He causes the following bodily injuries to passengers in his car: Carl $12,000 Jeanne $10,000 Charlie $10,000 How much will his policy pay? a. Nothing. b. $10,000 each to all that were injured c. $20,000 for the total BI portions of accident d. $32,000 total for all injuries from Part A Liability

c

An insured has 25/50/25 limits and injured another person. The injured person won a tort claim for $30,000 against the insured and the insured's attorney charged $7,500 to defend the insured. How much is paid by the insured's insurance company? a. 0, since the insured was at-fault b. $50,000 the policy limit c. $37,500 the actual damages and the attorney's fees for defense d. $32,500 the policy limit and the attorney's fees for defense

d

If Jack has an accident that is his fault, Jack has liability insurance with 10/20/10 limits, Extended PIP with no deductible, & Med Pay of $2,000... what is the maximum potential payment to a guest passenger, who suffers injury and does not own an auto, has no auto insurance and has $42,000 in medical expenses? a. $10, 000 (80% PIP + $2,000 Med Pay) b. $32,000 ($10,000 PIP; $2,000 Med Pay; $20,000 BI) c. NONE- Needs to have Health Insurance d. $22,000 (PIP $10,000; Med Pay $2,000; NI $10,000)

d

Jack is involved in an accident- he is driving his car when hit by an at-fault driver, (Florida residents). Jack has two more cars at home. Both Jack and Sam have Basic PIP with no deductible, Med Pay coverage $5,000, Liability of 50/100/50, and stacked UM of $50,000 on each car they own. Jack has a medical claim of $215,000. How much will Jack's UM pay for this claim? a. -0- b.50,000 c. 100,000 d. 150,000

d

While driving on the Pennsylvania Turnpike, William's auto has a collision with a deer that jumps in front of his car. In order for coverage to be afforded, William's Personal Auto Policy must have: a. extended non-owned coverage b. Uninsured motorists c. Collision coverage d. Other than collision coverage

d

Your insured with Part A Liability Limits of 15/30/20 and Part C-UM Limits of 10/20 stacked with three autos, has an accident with third party who was at fault and has Part A Liability Limits 10/20/10 and Part C-UM of 10/20 stacked with two autos. What is the maximum amount for injuries to just your insured from just the at-fault driver's PAP? a. $30,000 b. $20,000 c. $15,000 d. $10,000

d

How do Workers Compensation benefits apply when work related injuries, work loss, and replacement services are also covered by PIP? a. WC excess over PIP b. Coverage shared on a pro rata basis c. PIP excess over WC d. PIP excludes coverage if WC is available

c

An insured buys mechanical breakdown coverage on his used car. For what length of time and mileage will he/she have coverage? a. 12 Months/12,000 Miles b. 24 Months/ 24,000 Miles c. 36 Months/ 36,000 Miles d. Not available for used cars

a

All of the following are TRUE of Named non-owner Coverage EXCEPT: a. this coverage is provided for individuals who do not own an automobile but may borrow or rent vehicles b. The Named Non-owner coverage is an endorsement to the Personal Auto Policy c. An individual with a company auto would never have a need for Named Non-owner coverage d. Named Non-owner coverage may include liability, medical payments, and uninsured motorists coverage

c

Lender's interests in REAL property are protected with a Mortgage clause. How are lender's interests protected in personal property-such as automobiles? a. Loss payable clause b. Assignment clause c. Waiver clause d.Mortgage clause

a

All of the following are "Thresholds" of the No-Fault Law, EXCEPT: a. Death b. Temporary injury c. Permanent loss of bodily function d. Permanent injury other than scarring

b

An insured has 3 vehicles but only insured 2 of them. He and his wife are injured in an accident while occupying the uninsured auto. Which of the following is true concerning PIP coverage? a. PIP would respond to insured but not the wife b. PIP would respond to both if unendorsed c. PIP would respond to both if "stacked" d. There is no coverage for either, since the vehicle is uninsured

d

In Florida, Pt. B, Medical Payments (Med Pay) will pay: a. Primary benefits b. Excess benefit above the liability payment c. Primary or excess depending upon the option selected d. Excess benefits after PIP is exhausted

d

When is the named insured not entitled to the benefit of PIP? a. Injured in Florida while a pedestrian by a defined motor vehicle b. Injured outside of Florida in their insured vehicle c. Injured in Florida in a defined motor vehicle d. Injured outside of Florida while a pedestrian

d