Personal insurance coverages- Personal Auto Insurance
Which of the following could be covered under the Liability section of a named insured's Personal auto policy?
B Injuries to a person struck by the named insured's auto
Mr. Jones and Mr. Smith have an accident. Mr. Jones is at fault. Mr. Smith's insurance company can collect from Mr. Jones' insurance company under the principle of:
B subrogation
Which of the following losses could be paid under Uninsured Motorists coverage?
B Lee, the insured, is injured when she is struck by a car that runs a red light. The driver has no Liability insurance.
Amelia has Underinsured Motorist Coverage in the amount of $50,000. In the event of an accident with a motorist carrying liability limits of 25/50/15, who is completely at-fault, Amelia could collect which of the following amounts from a $50,000 BI settlement:
A $25,000 from the other insurer and $25,000 from her own policy.
If the named insured acquires a new car that does not replace a previously insured auto, what must the insured do to obtain coverage for the auto under her Personal Auto policy?
C Notify the insurance company of the new car within 30 days of the purchase.
The insured drives over a neighbor's bicycle parked in the street. The damage to the bike will be paid by which part of the insured's auto policy?
C Property damage liability
The insured's automobile liability coverage pays for:
C The claimant's bodily injury (BI) or property damage (PD) caused by the insured.
The insured has a Personal Auto policy with a $300,000 single limit for Liability coverage. The insured causes an auto accident that results in $150,000 bodily injury to the other driver, $200,000 to a passenger in the other driver's car and $8,000 in property damage to the other car. How much would the insured's policy pay for this accident?
A $300,000
Which one of the following losses would be paid under Part D (Physical Damage to Your Auto) of the Personal Auto policy?
A A permanently installed tape player was damaged when thieves attempted to remove it from the car
An Assigned Risk Plan covers:
A Insureds who are uninsurable in the standard market
Ned loses control of his car & hits a parked car. Which coverage of Ned's Personal Auto policy will pay for the damage to the parked car?
A Part A- Liability coverage
In which of the following situations would the Personal Automobile policy not provide coverage under the Liability section?
A The named insured borrows a motor home for a vacation
If you are driving someone else's car & have an at-fault accident, the insurance that pays will be:
A The one that follows that car, not the driver.
Janice owns two cars. One car is insured under a Personal Auto policy. The other car, which is older & has very little resale value, is not insured. While driving the older car, Janice hits a telephone pole & is injured. Could she collect for her injuries under Medical Payments coverage?
B No. The vehicle is not insured.
During a windstorm, a tree limb fell on Tom's car & broke the windshield. Which coverage of his Personal Auto policy will cover the damage to his car?
B Other than Collision coverage (Comprehensive coverage) of Part D- Physical Damage coverage
Sally was injured when she lost control of her car & hit an embankment. Which part of her Personal Auto policy will cover her medical expenses?
B Part B- Medical Payments coverage
An insured is found liable for $100,000 in damages as a result of a car accident. Her insurance company incurred $25,000 in expenses defending the insured against the suit. The insured's auto policy limit is $100,000. How much will the insurance company pay for this loss?
A $100,000
If an automobile policy is written with liability limits of 100/300/50, the most any one person can collect for BI damage is:
A $100,000
When a person borrows another person's automobile:
B The insurance on the auto being driven is primary
Who of the following are provided liability coverage under Mr. Stump's Personal Auto policy?
A, B, C Edna, Mr. Stump's wife, who resides with him Mr. Stump's 16 year old son, who lives at home A neighbor who borrows Mr. Stump's car with Mr. Stump's permission
What are the conditions that must be met for a loss to be covered under Part A- Liability coverage under a Personal Auto policy?
A, B, C The person involved must be an insured. The insured must be legally responsible for the damages. Damages must involve BI or PD and result from an auto accident.
Which of the following losses would be excluded under Part A- Liability of the Personal Auto policy?
A, B, C, D, E
Which of the following autos owned by the named insured could be covered under the Personal Auto policy?
A, B, C, E Pickup truckup used on the insured's farm Station wagon Chevrolet sedan Small trailer designed to be pulled by a car
Which of the following could be considered an uninsured motorist?
A, B, D Has no liability coverage Driver whose insurance company is insolvent Unidentified hit & run driver
Who is the named insured under a Personal Auto policy?
A,C Named insured Named insured, spouse, as long as the spouse lives in the household
Which of the following losses would be excluded under part D- Physical Damage Coverage of the Personal Auto policy?
A,C When the insured fails to pay his taxes, the IRS confiscates his car & sells it. The insured's cell phone that she sometimes carries in her car is damaged in a collision.
Which of the following losses would be paid under the Other than Collision (Comprehensive) coverage of the Personal Auto policy?
B The insured's car is stolen
Lisa's Personal Auto policy has a $20,000 Part A- Liability limit, which meets her state's financial responsibility requirement. While driving in another state, she causes an accident that results in $25,000 of BI & PD. That state's financial responsibility law requires drivers to carry $25,000 in Liability coverage. How much will Lisa's insurance company pay for her loss?
B $25,000
Pat borrows Mike's new car for a test drive. Pat's car is covered by 25/50/15 liability coverage. Mike's new car carries 100/300/100 liability coverage. If Pat hits a pedestrian and the court awards $150,000 as the result of these injuries to the pedestrian, Pat's auto liability will pay the following amount:
B $25,000
Under a no-fault plan:
B An insurance company reimburses its insured for auto losses, regardless of who was at fault for the loss
When would Mr. Jones not be covered under his Personal Auto policy?
B He drives his automobile to Mexico.
Automobile Medical Payments Coverage:
B Includes coverage for funeral expense
Which of the following would be eligible for a Personal Auto policy?
B,C Nancy Smith John & Suzette Oglesby, a married couple who live together
Which of the following are considered family members under the Personal Auto policy?
B,C The insured's mother in law, who resides with the insured. The insured's foster child.
Susan is critically injured by a hit & run driver while she is driving her car on a work-related errand. Her medical expenses, which total $50,000, are paid in full by her employer's Workers Compensation policy. Her injuries are also covered under her Personal Auto policy's Uninsured Motorists coverage. Assuming she carried a $100,000 limit for Uninsured Motorists coverage, how much would Susan be paid under the Personal Auto policy?
C $0
Which one of the following accidents would NOT be covered under the Uninsured Motorists coverage of the Personal Auto policy?
C An accident with a driver who carries the minimum liability limits required by law, but whose insurance is not adequate to cover the damages
The insured hits a deer, which damages the insured's automobile. Which of the following coverages would pay for the damage to the insured's automobile:
C Comprehensive (Other than Collision)
The Physical Damage section of the Personal Auto policy excludes losses arising from:
C Mechanical breakdown
Mr. Jones has Bodily Injury and Property Damage coverage on his vehicle. Upon entering the garage of the dwelling he is renting, Mr. Jones hits the garage wall. Which of the following damages would be covered under his liability coverage?
C The damage to the garage wall
Drivers insured through the Automobile Assigned Risk Plan are insured this way because:
C They cannot obtain insurance through regular/voluntary markets
Label each of the following as a Collision loss or Other Than Collision (Comprehensive) loss: An auto slides on ice, runs into a curb, & flips onto its side. A cow escapes from Mr. Smith's farm & wanders onto the highway. A passing auto runs into the cow. An auto is stolen from a parking lot. An auto stops suddenly on the freeway, causing two motorists following it to crash into it in a chain reaction. A bird flies into the windshield of an auto. An auto is swept away in a flood.
Collision Comp Comp Collision Comp Comp
Mr. Jones has an auto policy with Liability Coverage limits of 25/50/10. Mr. Jones is involved in an accident causing $4,500 in damage to his own vehicle, $7,000 in damage to the vehicle he struck, and $10,000 bodily injury to the driver in the other vehicle. How much will Mr. Jones' liability insurance pay?
D $17,000
Sam is driving John's car with his permission. John doesn't have any insurance. Sam has automobile insurance coverage with Bodily Injury and Property Damage Liability Coverage, along with Collision coverage. Which part of Sam's policy will cover the damage to John's car if Sam was at-fault in the accident?
D Collision Coverage
State Financial Responsibility Laws pertain to what type of automobile coverage:
D Liability
Mr. Jones borrows Mr. Smith's car with Mr. Smith's permission. Mr. Jones is involved in an accident damaging Mr. Smith's car. Whose insurance is primary for the damage to Mr. Smith's car?
D Mr. Smith's Collision
The Personal Auto policy's Medical Payments coverage would NOT provide protection for which one of the following?
D Occupants of a car that was struck by the insured
John Jones and his son, John Jr. each own a private passenger auto and each car is under a separate policy with the owner as the named insured. Mr. Jones is using his son's car while his own auto is in the garage for repairs. In the event of an accident:
D The son's policy will be primary, and the father's policy will apply on an excess basis