Chapter 4: Personal Auto Insurance
true
A "named non-owner endorsement" which is attached to a personal auto policy would be advisable for someone who does not own a car, but rents vehicles while traveling for business or pleasure. a) true b) false
all of these can be provided without decreasing the limits of the policy
A personal auto policy provides which of the following types of payments without decreasing the limits of the policy? a) reasonable expenses incurred at the request of the insurer b) cost of defense attorney's fees c) premiums on appeal bonds d) all of these can be provided without decreasing the limits of the policy
motorcycles are only covered with the proper endorsement
An insured owning a Personal Auto Policy has just purchased a new motorcycle, but does not have coverage under the auto policy because: a) motorcycles are covered under homeowners policies b) coverage cannot be obtained on a motorcycle under a pap c) motorcycles can only be insured separately d) motorcycles are only covered with a proper endorsement
yes, the loss will be covered under the property damage liability section of Stan's policy
Stan's young son accidentally releases the brake on the family car causing it to roll down the driveway, across the street, and then strikes the neighbor's vehicle causing $1,800 damage to it. will stan's personal auto policy pay for the damage, and if so which part will cover the loss? a) no, this accident would not be covered b) yes, the loss would be covered under collision coverage of stan's policy c) yes, the loss will be covered under the property damage liability section of stan's policy d) yes, the damage would be covered by the other-than-collision-coverage section of stan's policy
coverage , which is considered excess of other insurance coverage, for accidents that occur in mexico within 25 miles of the US border
The "mexico endorsement" in a personal auto policy provides which of the following? a) required liability coverage while the insured is driving anywhere in mexico b) required added physical damage coverage for US citizens living within a certain distance of the Mexican/US border c) coverage, which is considered excess of other insurance coverage, for accidents that occur in mexico within 25 miles of the US border d) required liability coverage on the vehicles of Mexican citizens anywhere in the continental USA
True
The State of California has a financial responsibility law that requires minimum insurance limits per accident of $15,000 bodily injury per person, $30,000 to all persons injured in the accident and property damage limits of $5,000. a) true b) false
alaska
accidents that occur in which of the following places are covered under a personal auto policy? a) alaska b) peru c) mexico d) all of these would be covered
all of these are applicable
an auto insurer must provide which of the following to an insured? a) 10 days notice prior to cancellation because of nonpayment of premium b) 20 days notice prior to cancellation for reasons other than nonpayment of premium c) 20 days notice prior to an offer to renew d) all of these are applicable
true
an employee with a personal auto policy is driving a car owned by her employer. this company car would not need an endorsement for liability coverage if the employee were to experience an accident with the vehicle a) true b) false
other than collision coverage
in a personal auto policy the damage caused to a vehicle by a hail storm would be covered by which of the following? a) collision coverage b) other than collision coverage c) excluded as a catastrophic act of nature d) none of these are true
$50,000
kim is insured by a personal auto policy that contains limits of $25,000 per person, $50,000 per occurrence for bodily injury claims. an accident occurs, for which kim is found to be at fault which results in bodily injury suits by three people in the amounts of $9,000, $16,000, and $32,000. how much will the policy pay? a) $25,000 b) $28,500 c) $50,000 d) $57,000
up to $2,000 will be paid for all injuries that result from an accident that occurs while the insured is giving his girlfriend a ride int he vehicle, and both are injured
medical payments of $2,000 are provided under a personal auto policy. all of the following are true concerning this coverage except: a) up to $2,000 wil be paid if the insured slams the trunk of her car on her husband's hand b) up to $2,000 will be paid if the insured's child is hit by a car while on the way to school c) up to $2,000 will be paid for all injuries that result from an accident that occurs while the insured is giving his girlfriend a ride int he vehicle, and both are injured d) up to $2,000 will be paid, if the insured is in an accident in friend's car and the friend does not have medical payments coverage
the driver's license of the person who normally drives the vehicle has been suspended
personal auto policies can be cancelled by an insurance company under which of the following circumstances? a) the driver's license of the person who normally drives the vehicle has been suspended b) the insured has been determined to be too old to continue driving c) the insured did not comply, after he was at-fault in an accident, with the requirements of providing a written notification within a stated period of time after the accident d) none of these are reasons why a pap can be cancelled
any of these are settlement options
physical damage losses covered by a personal auto policy can be settled in which of the following ways? a) repairing the damaged vehicles b) replacing the damaged vehicle with a vehicle of like kind and quality c) paying a cash settlement to the insured d) any of these are settlement options
all of these are covered
the other-than-collision section of a personal auto policy would not cover which of the following? a) theft of a hood ornament b) theft of a cd player mounted in the dashboard c) theft of a spare tire from a trunk d) all of these are covered
all of these are used in determining auto policy rates
the premiums for a personal auto policy in the state of california are determined by which of the following factors? a) number of years of driving experience of the insured b) number of miles the insured drives to his or her place of employment c) the driving safety record of the insured, as well as other factors the insurer may adopt by regulation d) all of these are used in determining auto policy rates
colliding with another vehicle, object, or the upset of the vehicle
the term "collision" as used in a personal auto policy can be best defined as: a) colliding with another moving vehicle b) colliding with any object or animal c) colliding with two or more vehicles on a public thoroughfare d) colliding with another vehicle, object, or the upset of the vehicle
true
under the collision coverage of a personal auto policy the rental car expenses incurred by an insured after a covered accident are not covered unless the policy has been endorsed for this expense a) true b) false
true
vandalism damage to a personally owned automobile is covered under the physical damage section of a personal auto policy a) true b) false
bodily injury and property damage coverage
which of these is included in the liability section of a personal auto policy? a) uninsured motorists coverage b) medical payments coverage c) bodily injury and property damage coverage d) all of these are included
