Property/Casualty CH.6 EXAM QUESTIONS
Uninsured motorist coverage provided by a Personal Auto policy covers insureds while they occupy or use which of the following vehicles? A A covered vehicle owned by the named insured B A vehicle being used as a taxi C A vehicle being used to carry property for a fee D A vehicle being driven without permission
A A covered vehicle owned by the named insured
Which of the following is covered under a Personal Auto Policy? A A vehicle driven with permission by an unlicensed driver B Intentional damage done by the insured C Use of a non-owned vehicle used without permission D Liability for damage caused by a vehicle designed mainly for off road use
A A vehicle driven with permission by an unlicensed driver
Other than collision coverage provided under Part D of an insured's Personal Auto policy would cover losses to an insured vehicle caused by all of the following, except: A Driving into a tree B Hail C Larceny D Fire
A Driving into a tree
When an insurer pays for a physical damage loss covered by Part D of a Personal Auto policy, all of the following are true, except: A If the insurer returns a stolen car to the insured, it does not have to pay for damage that resulted from the theft B The insurance company can keep or return a stolen car C The insurance company can decide whether to pay money or repair the vehicle D Claim payments made in cash will include any applicable sales tax
A If the insurer returns a stolen car to the insured, it does not have to pay for damage that resulted from the theft
Whose policy will be primary for bodily injury coverage for the injured party if a neighbor borrows an insured's car and injures a pedestrian? A The insured's Personal Auto policy B The neighbor's Personal Auto policy C The neighbor's Homeowners policy D There is no coverage for this loss
A The insured's Personal Auto policy
A A vehicle that is being used as a residence
A standard Personal Auto policy considers all of the following to be uninsured motor vehicles, except: A A vehicle that is being used as a residence B A hit-and-run vehicle whose owner or operator cannot be identified C A vehicle with insurance from an insurer that becomes insolvent D A vehicle with no liability insurance coverage
C It is written only with split limits of liability
All of the following are true regarding liability coverage provided by a Personal Auto policy, except: A It automatically provides personal injury protection coverage while the insured is driving in states that require it B Supplemental payments are paid without reducing the Part A limit of liability C It is written only with split limits of liability D Part A does not provide coverage for loss to property owned by an insured
A 48 Hours
An insured's covered auto is stolen, and the insured incurs transportation expenses in order to get to work each day. Transportation expenses coverage under Part D of their Personal Auto policy begins how long after the theft? A 48 hours B 72 hours C 24 hours D Immediately
A $49,500
An insured, whose Personal Auto policy has 25/50/10 limits, is at-ault in a car accident. Claimant A has bodily injuries in the amount of $25,000. Claimant B has bodily injuries equaling $20,500. Claimant C has bodily injuries equaling $4,000. What is the insurer's liability for this accident? A $49,500 B $60,000 C $25,000 D $50,000
Under a Personal Auto policy, which of the following will be paid by supplementary payments provided by Part A? A $1,000 for loss of earnings when the insured is disabled B A $250 bail bond C Medical expenses when the insured's daughter is injured in an auto accident D A judgment against the insured for damages related to a third party's bodily injury
B A $250 bail bond
The limit of liability applying to medical payments coverage on a Personal Auto policy applies to: A All claims during the policy term B Each person injured in any one accident C Each occurrence that results in bodily injury D All persons injured in any one accident
B Each person injured in any one accident
Which of the following is not a supplementary payment provided by the liability coverage of a Personal Auto policy? A Up to $250 for the cost of bail bonds B Medical payments for an occupant of an insured vehicle C UP to $200 per day for the insured's lost earnings due to the trial D Reasonable legal expenses incurred at the insurer's request
B Medical payments for an occupant of an insured vehicle *Medical payments are paid out of Part B of the policy. Supplementary payments are provided under Part A for expenses related to a defense provided by the insurer.
Generally, which of the following vehicles is not eligible for coverage under a standard Personal Auto policy? A 5,000-pound van with custom furnishings B Pickup with gross vehicle weight of 12,000 lbs. C SUV for an individual's personal use D Automobile used to transport farming materials
B Pickup with gross vehicle weight of 12,000 lbs. *Passenger vans and pickups often have to meet a certain weight requirement in order to be eligible for a Personal Auto policy, usually 10,000 pounds or less. This helps distinguish them from autos intended for commercial uses. However, private passenger autos used for incidental business purposes, such as delivering or transporting goods and materials for farming or ranching purposes, are still eligible for PAP coverage.
An insured with a Personal Auto policy on their car is using a non-owned auto to run errands. Under the insured's policy, liability coverage for use of the non-owned auto is: A Shared pro rata between the insured's policy and the policy on the vehicle B Provided on an excess basis C Provided on a primary basis D Not provided because there is an exclusion for damage to property in the insured's care
B Provided on an excess basis
Part E of the Personal Auto Policy states that after a loss the insured must: A Immediately initiate repairs to the vehicle to protect it from further damage B If the vehicle was stolen, contact the insurer for permission to report the theft to the police C Protect the auto from further damage D Give notice of the accident to the insurer within 30 days
C Protect the auto from further damage
After a 4-car accident caused by the insured, Claimant A has bodily injuries in the amount of $49,500, Claimant B has bodily injuries equaling $19,500, and Claimant C has bodily injuries equaling $14,000. If the insured's Personal Auto policy limits are 25/50/10, what will the insurer pay? A $49,500 B $58,500 C $50,000 D $83,000
C $50,000 *Regardless of the individual claim amounts, because the total of the individual claims ($83,000) exceeds the per accident limit of $50,000, the insurer's liability is limited to $50,000 for all three claimants.
D It may be used to transport goods for hire if receipts are less than $10,000
Choose the false statement about a newly acquired additional vehicle under the PAP: A It must be reported to the insurer within a specified period B It may be used on a farm C Coverage will be as broad as the broadest coverage on any insured vehicle in the household D It may be used to transport goods for hire if receipts are less than $10,000
C Damage to the insured auto after crashing into a light pole
Collision coverage under Part D of a Personal Auto policy would cover: A Broken windows after a riot B Damage to the auto caused by collision with a deer on the road C Damage to the insured auto after crashing into a light pole D Damage to the auto caused by a tree falling on the auto
B Damage to the insured auto after crashing into a light pole
Collision coverage under Part D of a Personal Auto policy would cover: A Damage to the auto caused by a tree falling on the auto B Damage to the insured auto after crashing into a light pole C Damage to the auto caused by collision with a deer on the road D Broken windows after a riot
B Only in the United States, its territories, Canada, and Puerto Rico
Coverages provided by an unendorsed Personal Auto policy apply while the auto is located: A Only in the United States and its territories B Only in the United States, its territories, Canada, and Puerto Rico C Anywhere in the world D Only in the United States, its territories, Canada, Puerto Rico, and Mexico
Under a Personal Auto policy, which is covered under Part D - Coverage for Damage to Your Auto? A Custom painting on a van B Radar and laser detection devices C Road damage to tires D A newly acquired vehicle reported to the insurer 10 days after purchase
D A newly acquired vehicle reported to the insurer 10 days after purchase *Newly acquired autos may be covered by Part D from the date of ownership as long as certain notice requirements are met. As long as the insured is requesting Part D coverage that already applies to an auto on the policy, the insured may report the auto to the insurer within 14 days of ownership for coverage to be provided. If the insured is requesting Part D coverage that does not already apply to an auto on the policy, the insured has 4 days to report the new auto to have coverage apply. Even if the insured misses the relevant notice requirement, Part D coverage can still apply to the new auto as of the day the insured requests coverage. Damage resulting from normal wear and tear, such as road damage to tires, is not covered by Part D.
A Personal Auto policy is designed to cover: A Personal and commercial autos that are owned by an individual or family B Only an individual and their spouse's liability for the personal use of an automobile C Only physical damage to an auto personally used by an individual or their family members D An individual's or their family's personal use of an auto
D An individual's or their family's personal use of an auto
D $600
If an insured has a Personal Auto policy with collision coverage, transportation expenses incurred after a collision are covered, up to a total of: A $1,000 B $500 C $200 D $600
A Damage to a private garage rented to the insured, caused by the insured's child driving a covered auto
Liability coverage provided by a Personal Auto policy would cover which of the following damages? A Damage to a private garage rented to the insured, caused by the insured's child driving a covered auto B Damage to a neighbor's riding lawn mower that is in the care of the insured C Damage to property being transported by the insured in a covered auto D Damage to a storefront caused by a valet driver operating a covered auto
A $280,000 for bodily injury and $50,000 for property damage
Policyholder B has a PAP with limits of 100/300/50. In an accident for which B was liable, there were bodily injury claims in the amounts of $80,000, $100,000, and $125,000; and property damage claims of $20,000 and $35,000. How much will B's policy pay? A $280,000 for bodily injury and $50,000 for property damage B $300,000 for bodily injury and $50,000 for property damage C $305,000 for bodily injury and $50,000 for property damage D $305,000 for bodily injury and $55,000 for property damage
A. $120,000
S carries a Personal Auto policy with liability limits of 50/100/25. S strikes another vehicle, causing bodily injuries to the driver equal to $70,000, bodily injuries to one passenger equal to $30,000, and bodily injury to a second passenger equal to $50,000. The accident also causes $20,000 worth of property damage to the other vehicle. What is the maximum S's policy will pay for the bodily injury and property damage claims? A $120,000 B $170,000 C $150,000 D $125,000
D Amending the definition of 'your covered auto' and 'newly acquired auto' to include any miscellaneous type vehicle
The Miscellaneous Type Vehicle Endorsement attached to a Personal Auto Policy allows eligibility of a motorcycle by: A Specifically naming it in the Declarations B Adding motorcycles to the list of eligible vehicles C Altering the four-wheel requirement D Amending the definition of 'your covered auto' and 'newly acquired auto' to include any miscellaneous type vehicle
A Covers only the person named on the endorsement
The Named Non-owner endorsement: A Covers only the person named on the endorsement B Provides only liability coverage C Does not supply coverage to meet a state's financial responsibility law requirements D Does not apply to a rented vehicle
D A vehicle newly acquired by the named insured that has not been reported to the insurer
The definition of an uninsured motor vehicle under a standard Personal Auto policy does not include: A A hit-and-run vehicle that cannot be identified B A pickup insured by an insolvent company C A vehicle that has no applicable liability insurance policy D A vehicle newly acquired by the named insured that has not been reported to the insurer
D They are paid in addition to the policy's liability limits
Under Part A of a Personal Auto policy, which of the following is correct about supplementary payments? A They are paid for expenses related to a defense of a suit brought against the insured for an excluded loss B Any payments made for expenses associated with a defense will reduce the policy's liability limits C They are paid as supplementary benefits only after the policy's liability limit is exhausted D They are paid in addition to the policy's liability limits
B A motorcycle the insured owns
Under a Personal Auto policy with no added endorsements, which vehicle would NOT be covered? A An owned trailer used for ranching purposes B A motorcycle the insured owns C A pickup truck with a gross vehicle weight of 7,600 pounds D An eight-passenger van with a gross vehicle weight of 8,600 pounds
D A cargo van used in the course of employment by the insured's business
Under a Personal Auto policy, medical payments do not apply to passengers occupying which of the following? A The insured's van that is being used for share-the-expense car pools B A non-owned temporary substitute auto used by the insured C The insured's newly acquired vehicle D A cargo van used in the course of employment by the insured's business
B A newly acquired vehicle reported to the insurer 10 days after purchase
Under a Personal Auto policy, which is covered under Part D - Coverage for Damage to Your Auto? A Road damage to tires B A newly acquired vehicle reported to the insurer 10 days after purchase C Custom painting on a van D Radar and laser detection devices
B. A vehicle with fewer than four wheels
Unendorsed Personal Auto policies would refuse to provide liability coverage for: A A 5,000-pound pickup truck used to transport farm goods B A vehicle with fewer than four wheels C A non-owned golf cart D An SUV used in a share-the-expense car pool
B A covered vehicle owned by the named insured
Uninsured motorist coverage provided by a Personal Auto policy covers insureds while they occupy or use which of the following vehicles? A A vehicle being used as a taxi B A covered vehicle owned by the named insured C A vehicle being driven without permission D A vehicle being used to carry property for a fee
D The highest limit of the two policies
When an auto has two Personal Auto policies with the same insurer, the insurer's liability would not exceed: A The limit of the first one purchased B The combined limit of the two policies C The limit of the last one purchased D The highest limit of the two policies
A 25 miles
When the Limited Mexico Coverage Endorsement is added to a Personal Auto policy, it provides coverage while the covered autos is how many miles into Mexico? A 25 miles B 10 miles C 50 miles D 100 miles
C Underinsured Motorists Coverage
Which coverage protects the insured against drivers who do not have auto liability insurance limits adequate to cover a loss? A Medical Payments Coverage B Liability Coverage C Underinsured Motorists Coverage D Uninsured Motorists Coverage
C Promptly notify the police in the event of a hit-and-run accident
Which of the following is an insured's duty in the event of loss covered by a Personal Auto policy? A Contact the at-fault party B Refer the claim adjuster to an attorney C Promptly notify the police in the event of a hit-and-run accident D Call the police if legal papers are received
A If the insurer returns a stolen vehicle, the insurer does not have to pay claims for vehicle damage
Which of the following statements about claim payment regarding a stolen vehicle is FALSE? A If the insurer returns a stolen vehicle, the insurer does not have to pay claims for vehicle damage B An insurance company can decide whether to pay cash for, replace, or repair the vehicle C An insurance company may choose to keep or return a recovered stolen car D A claim payment will include any applicable sales tax
C A vehicle owned by the government
Which of the following vehicles is not considered an uninsured motor vehicle under Part C of a Personal Auto policy? A A vehicle that disappears after a collision and cannot be identified B A vehicle with liability insurance whose coverage is denied by its insurer C A vehicle owned by the government D A vehicle insured for less than the state's minimum required liability coverage
A The Right to Recover is an insured's right
Which statement is not correct about the Right to Recover Payment under the PAP? A The Right to Recover is an insured's right B The person who is paid a claim must give the insurance company the right to recover damages C The right to recover involves going after the negligent party to pay for the insured's loss D The insured must reimburse the insurance company if the insured is paid by the other party
C Out of State Coverage
While driving in another state with higher liability coverage requirements, which of the following sections of a Personal Auto policy automatically provides the required coverage? A Automatic Extension of Coverage B Other Insurance C Out of State Coverage D Any State Coverage