Auto Liability Questions

Which of the following is the lowest single limit automobile liability that meets the requirements of the Florida Financial Responsibility Law? A. $10,000 B. $20,000 C. $30,000

C. $30,000

Mary has a personal auto policy with liability limits of 100/300/50. She hits another car with three passengers, and all three are insured. Mary is sued by all three of the passengers. The first sues for $100,000; the second sues for $125,000; the thirs sues for $50,000. The vehicle mary hit has $40,000 in damages. Mary's insurance company pays $25,000 for mary's defense. PIP and Med pay have already been exhausted. How much could Mary's insurance policy pay for this claim? A. $315,000 B. $340,000 C. $325,000 D. $240,000

A. $315,000

Joe has 10/20/10 liability limits, and heborrows Sue's car. Sue has 15/30/15 limits of liability. Joe injures a pediatrician while driving sue's car and the pediatrician's medical bills equal $22,000 (after PIP and Med Pay are paid out). How muchis paid from liability? A. Sue's policy pays $15,000 and Joe's policy pays $7,000 B. Sue's policy pays $11,000 and Joe's policy pays $11,000 (pro-rate) C. Sue's policy pays $7,000 and Joe's policy pays $15,000

A. Sue's policy pays $15,000 and Joe's policy pays $7,000

An insured had an accident in another state that required liability limits of 25/50/25. 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 limits of the other state C. Our insured's policy will pay up to it's 10/20/10 limits and the insured will be responsible for any balance

B. Our insured's policy will respond to the higher limits of the other state

Your insured has purchased the minimum split limit policy that meets Financial Responsibilty Law in Florida. He causes the following bodily injuries to passengers in his car: Carl $12,000 ; Jeanne $10,000 ; and Charlie $10,000. How much will his policy pay? A. Nothing B. $10,000 each to all who were injured C. $20,000 for the total BI portion of accident D. $32,000 total for all injuries from Part A liability

C. $20,000 for the total BI portion of accident

Which statement below is true regarding auto liability coverages? A. You may buy a liabilty endorsement to cover yourself from injuries when you are at fault B. Applies only when insured is "not at fault" C. Can become primary when operating an uninsured non-owned auto D. Can be endorsed to cover losses on a replacement cost basis

C. Can become primary when operating an uninsured non-owned auto

Oscar works for Burger Queen and part of his benefits package is a company car that he can use for business as well as personal use. Oscar wants to make sure his personal policycovers him while driving the company car. What should his agent recommend adding to his personal auto policy? A. Named Non Owner endorsment B. Business Pursuit Liability endorsment C. Extended Non Owner endorsement D. No endorsement needed. Personal policy will extend coverage to the business auto

C. Extended Non Owner endorsement

An insured has 25/50/25 liability limits and injures 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. $32,500, the policy limit and the attorney's fees for defense

Homer had basic PIP ($10,000) and Property Damage liability ($10,000) but let his policy lapse and injures another driver. The other driver has basic PIP ($10,000) and 100/300/50 liability limits and 50/100 UMC. Medical bills for the other driver are $65,000, and he has $20,000 in damage to his vehicle. What total amount could Homer be responsible for payment? A. $10,000 B. $25,000 C. $65,000 D. $85,000

D. $85,000

The "trigger" of the financial responsibility law is: A. Carrying a gun in a personal auto B. Buying a second personal auto C. An accident involving bodily injury or property damage rendering the vehicle inoperable or a serious violation such as a DUI

C. An accident involving bodily injury or property damage rendering the vehicle inoperable or a serious violation such as a DUI