Lesson2 Ch. 5: Personal Auto Policy

The comprehensive portion of a personal automobile policy will extend to which nonowned vehicle? a.a rented vehicle for a family vacation b.a motorcycle c.a delivery van used for commercial autos d.a friends vehicle left for the insureds use temporarily

a. A rented vehicle for a family vacation

Auto insurance medical payments can best be described as: a.medical and funeral costs for your family not in your vehicle b.medical costs to medical professionals c.medical costs to the other driver d.medical and funeral costs for any person within your vehicle

a. Medical and funeral costs for your family not in your vehicle Auto insurance medical payments covers you and everybody in your car. Bodily injury, which is part of liability, will pay for other people

An insured has been drinking too much and runs off the road into a house. The home is damaged substantially, which portion of the insureds auto policy will cover the damage to the home? a.property damage b.nothing because the insured was drunk c.collision d.bodily injury

a. Property damage Property damage falls under Auto insurance Libability coverage. It is the last number in 30/60/25 and it fixes other peoples cars, houses and guardrails etc. Collision would fix your car, property damage fixes the damage to the other persons home.

Which of the following would be covered under the collision portion of an auto insurance policy? a.the insured takes a steep curve too fast and flips b.a drunk driver strikes the insured c.a deer is struck by the insured d.a truck driver strikes the insured

a. The insured takes a steep curve too fast and flips Collision is at fault coverage

Which of the following is not considered a covered auto under a personal auto policy? a.a company car used by the insured b.a four wheel passenger van c.a temporary substitute vehicle d.a farm vehicle

a. a company car used by the insured A company car falls under commercial/business auto and not personal auto. Company cars are also known as "Drive Other Car" insurance.

F was in a car accident and injured M's car. Which portion of the personal auto policy will fix F's car? a.collision b.bodily injury c.property damage d.other than collision

a. collision Collision fixes your car if you are at fault. Property damage (Liability) fixes the other guys car. Since F hit M and the question asks about Fs car, the answer is collision.

Which of the following would be covered under the comprehensive portion of a Personal Auto Policy? a.flood damage b.a hit-and-run c.pothole damage to a tire d.wear and tear

a. flood damage Other than Collision (Comprehensive) will fix your car if natural damage (flood, hail, fire, etc.) or if you hit an animal or if your car is stolen

A personal auto policy will cover all of the following EXCEPT: a.a motorcycle b.a small car c.a pickup truck d.a van with a trailer

a. motorcycle Motorcycles only have 2 wheels and personal auto policies require 4 wheels. Motorcycles are covered under Miscellaneous Coverage policies, like golf carts.

The minimum limits of insurance in this state are? a.100,000 / 300,000 / 25,000 b.30,000 / 60,000 / 25,000 c.50,000 / 100,000 / 25,000 d.15,000 / 30,000 / 25,000

b. 30,000/60,000/25,000

How many hours is the waiting period if a vehicle is stolen and before the insurer will pay a claim? a.96 hours b.48 hours c.72 hours d.140 hours

b. 48 hours Comprehensive insurance covers stolen vehicles, but the insured must give the police 2 days to find the car

The Motor Vehicle Safety Act, states all of the following CAN be rejected in writing, EXCEPT: a.uninsured and underinsured motorist b.liability c.medical payments d.PIP

b. Liability Liability insurance cannot be rejected

The provision of other-than-collision (comprehensive) would cover which of the following? a.payments to a friend in the event of an accident b.striking a deer in the road c.a dent in the fender from a pole d.backing into a pickup truck and damaging the bumper

b. Striking a deer in the road Other than collision (Comprehensive) fixes your car if you strike an animal, or if your car floods, is stolen or has any natural damage to it

Which of the following must be offered to a prospective customer but may be rejected in writing? a.collision b.underinsured motorist c.comprehensive d.rental reimbursement

b. Underinsured motorist Uninsured, underinsured, medical payments and personal injury protection (PIP) MUST be OFFERED to all customers. They can reject them in WRITING if they do not want the coverages. Liability cannot be rejected.

N hit Ts car and N has less than the state minimum coverage. Which portion of Ts policy will pay for the damage? a.legal liability b.uninsured motorist c.underinsured motorist d.collision

b. uninsured If you have less than the state minimum coverage (30/60/25), then you do not have insurance. They are uninsured

J borrowed Ks car and is involved in an at-fault accident. J's policy has limits of 10,000 and Ks policy has a per person limit of 25,000. What amount will Ks policy pay? a.10,000 b.35,000 c.25,000 d.15,000

c. 25,000 The car being driven is the primary insurance. Since it is Ks car, Ks policy will pay up to $25,000

In this state, which of the following will satisfy the Motor Vehicle Acts requirements? a.Automotive Uninsured Motorist Coverage b.Automotive Under-Insured Motorist Coverage c.Automotive Liability Coverage d.Automotive Collision Coverage

c. Automotive Liability Coverage

Which coverage must be included in ALL auto policies unless rejected in writing? a.collision coverage b.other than collision coverage c.personal injury protection d.towing and labor

c. Personal injury protection Personal injury protection (PIP), Uninsured motorist and underinsured motorist must be offered to all customers, but they can reject them in writing

A Personal Auto Policy (PAP)s uninsured motorist portion would cover which of the following incidents? a.the insured runs over a pothole b.the insured crashes their truck into a jersey wall c.the insured is hit and run while riding a bicycle d.the insureds vehicle is struck by flying debris

c. The insured is hit and run while riding a bike Car insurance covers you even if you are not in a car at the time. As long as you are damaged by a car, you can file under car insurance. Uninsured motorist covers hit-n-runs

P was struck by a driver with insurance limits less than that of which would cover the loss, which of the following applies? a.bodily injury b.property damage c.under-insured motorist d.uninsured motorist

c. Under-insured motorist Under-insured motorist fixes YOUR can and bodily injury if the person who hit you does not have enough coverage. However, the maximum you can receive is your limits subtracting their limits

Which of the following is covered under a personal auto policy? a.revoked licensed driver b.motorcycle c.unlicensed driver d.suspended licensed driver

c. Unlicensed driver Unlicensed drivers are covered, think of a 16 year old on a learners permit

A personal auto policy will NOT provide coverage in which scenario? a.used to drive to and from the supermarket b.a deer is hit by a car rounding a turn c.a temporary substitute vehicle d.the insured using a delivery truck to deliver merchandise

d. The insured using a delivery truck to deliver merchandise A delivery truck would be business auto, not personal auto

Under which scenario would an insurer decide to deny a claim for an at-fault car accident under a Personal Auto Policy? a.the vehicle had prior damage b.the insured was speeding c.the insured was at fault d.the vehicle involved in the accident was stolen by the insured

d. The vehicle involved in the accident was stolen by the insured If you steal a car, then wreck it, the insurance company won't pay your claim because you just committed a felony... Don't steal cars

F was injured in an accident by K where K was at-fault. Ks policy will pay for all of the following EXCEPT: a.property damage b.pain and suffering c.medical payments d.traffic fines

d. Traffic fines Car insurance doe not cover traffic fines