06 - Auto Insurance

A PAP provides coverage for medical payments as a result of an accident as long as the claim is reported within: A. Three years of the accident B. Three years after the inception of the policy C. Three years after the policy period ends D. Two years of the accident

A. Three years of the accident

Liability coverage under a PAP will provide coverage for which of the following losses? A. Intentional damage caused by an insured B. Damage to the insured's covered auto C. Damage to the insured's home caused by the vehicle of another D. Bodily injury to another while operating a nonowned auto

D. Bodily injury to another while operating a nonowned auto

The definition of bodily injury in a Personal Auto Policy includes all of the following, EXCEPT: A. Death B. Bodily harm C. Sickness or disease D. Damage to a vehicle

D. Damage to a vehicle

Which of the following is excluded under "Damage to the Insured Auto"? A. Loss resulting from theft of the vehicle B. Vandalism to tires C. Damage caused by flood D. Theft of personal effects

D. Theft of personal effects

Which of the following would be a nonowned auto that is covered under a PAP? A. A recreational vehicle B. An auto of a family member borrowed by the insured C. An auto that is used principally for business D. An auto that has no liability protection

B. An auto of a family member borrowed by the insured

John uses his sedan to ferry people to work each day. Each passenger pays $5 per ride. Which of the following is true with regard to John's auto? A. It is eligible for coverage under a PAP B. It is ineligible for coverage under a PAP C. It is not a vehicle designed for use on public roads D.It is a recreational vehicle

B. It is ineligible for coverage under a PAP

All of the following are covered by comprehensive coverage included in a PAP, EXCEPT: A. Damage caused by flood B. Loss as a result of road damage to tires C. Collision with a deer D. Vandalism damage

B. Loss as a result of road damage to tires

Which of the following must be submitted to a insurer before a claim will be paid? A. Notice of claim B. Proof of loss C. Conditional receipt D. An accord form

B. Proof of loss

Mary has an auto policy with an underinsured motorist limit of $50,000. She is struck by another driver who carries bodily injury limits of 20/40. Mary is awarded $100,000 in bodily injury damages. How much will her underinsured motorist coverage pay? A. $30,000 B. $50,000 C. $70,000 D. $100,000

A. $30,000

Each of the following is a covered auto under the PAP, EXCEPT: A. A tractor trailer driven across country B. A van with a weight of 9,000 pounds C. A trailer owned by the insured D. Newly acquired auto

A. A tractor trailer driven across country

All of the following are part of a PAP's coverage territory, EXCEPT: A. Mexico B. Canada C. Nevada D. Puerto Rico

A. Mexico

Al's auto policy has limits of 100/300/10. He causes an accident in which a person suffers $15,000 in bodily injury. How much will Al's policy pay? A. $15,000 less any deductible B. $15,000 C. $15,000 plus legal costs D. $100,000

C. $15,000 plus legal costs

A PAP provides coverage for sevearl types of supplementary payments. the policy covers bail bonds in the amount of: A. $50 B. $100 C. $250 D. $500

C. $250

Which of the following is not an insured under a PAP? A. The named insured B. A resident relative C. A person using the auto without permission D. Newly acquired auto

C. A person using the auto without permission

Which of the following is not eligible for coverage under a PAP? A. A 2,000 pound pickup B. A four-door station wagon C. A snowmobile used to drive to work D. A sport utility vehicle

C. A snowmobile used to drive to work

Supplementary payments are also provided by a PAP. the policy will pay for loss of earnings up to: A. $25 per day B. $50 per day C. $100 per day D.$200 per day

D. $200 per day