Personal Insurance - Review

According to Part A - Liability Coverage Case Study, how much will Sam's PAP pay to Sam?

$25,000

What time does the policy period start?

12:01 AM

Per the TX PAP handout, what is the max. gross vehicle weight for autos, pickups, and vans?

25,000 Pounds

Q26

ACV

Three elements of personal liability loss exposure:

Assets exposed to loss, causes of loss, and financial consequences of loss

Other Than Collision (OTC) coverage was previously referred to as:

Comprehensive

What is the definition of insurance?

Contract for transferring the risk of loss

The Named Insured is listed in which section of the PAP?

Declaration page

Where in the insurance policy would you find specific details about the insured?

Declarations page

A portion of a covered loss that is not paid by the insurer is called a _____.

Deductible

An _____ is a document that amends an insurance policy.

Endorsement

If you borrow a friends car and have an accident, your PAP coverage would apply. However, your coverage would be _____ over any physical damage coverage your friend has on their car.

Excess

Under the PAP, damage "due and confined" to wear and tear, freezing, mechanical or electrical breakdown or failure, and road damage to tires is _____?

Excluded

All of the following are examples of common policy conditions:

Insured's obligation to pay premiums, insured must report losses promptly, insured must provide appropriate documentation for losses

Part D of the Personal Auto Policy (PAP) includes all of the following provisions:

Insuring Agreement, Appraisal, Exclusions, Transportation Expenses, Limit of Liability, Payment of Loss, No Benefit to Bailee, Other Sources of Recovery

The primary function of exclusions is not only to _____ coverage but to also clarify the coverages granted by the insurer.

Limit

Any condition or situation that presents a possibility of loss, whether or not an actual loss occurs is known as:

Loss exposure

What is the name of a risk control technique that reduces the frequency of a particular loss?

Loss prevention

What covers physical damage to a covered auto that is a result of any cause of loss except collision?

OTC

The six sections of the Personal Auto Policy (PAP)?

Part A - Liability Coverage Part B - Medical Payments Coverage Part C - Uninsured Motorists Coverage Part D - Damage to Your Auto Coverage Part E - Insured Duties Following an Accident or Loss Part F - General Provisions

A _____ is described as the actual means by which property is damaged or destroyed.

Peril

Per the TX PAP handout, there are two coverages under Part B - Medical Payments, Medical Payments, and _____?

Personal injury protection

Tangible property consisting of land, all structures permanently attached to the land, and whatever is growing on the land is called what?

Real property