Personal Auto Policy

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 to carry property for a fee C A vehicle being driven without permission D A vehicle being used as a taxi

A A covered vehicle owned by the named insured ***Insureds occupying or using autos owned by the insured that are considered a Your Covered Auto are protected by Part C. Coverage is excluded for insureds occupying or using an auto owned by the named insured that is not covered by the policy, an auto being used without reasonable belief of entitlement, and an auto used as a public or livery conveyance.

Under a Personal Auto policy, which is covered under Part D - Coverage for Damage to Your Auto? A A newly acquired vehicle reported to the insurer 10 days after purchase B Custom painting on a van C Radar and laser detection devices D Road damage to tires

A 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.

Physical damage to which of the following items is covered by an unendorsed Personal Auto policy? A A pickup's bedliner B A radar speed gun C Disks and tapes D Custom graphics

A A pickup's bedliner ***Part D of a Personal Auto policy excludes coverage for custom furnishings or equipment, like special carpeting or custom graphics, but a pickup's cap, cover, or bedliner would be covered. Radar and laser detection equipment, tapes, records, and disks are also excluded from coverage.

Under an unendorsed Personal Auto policy, which of the following vehicles would not be considered Your Covered Auto? A A sedan furnished for the named insured's regular use B An non-owned SUV being used temporarily after the insured's auto was totaled in an accident C A hatchback owned by the named insured and described on the Declarations page D A farm implement being towed by the named insured's pickup truck

A A sedan furnished for the named insured's regular use

Which of the following vehicles is not considered an uninsured motor vehicle under Part C of a Personal Auto policy? A A vehicle owned by the government B A vehicle that disappears after a collision and cannot be identified C A vehicle with liability insurance whose coverage is denied by its insurer D A vehicle insured for less than the state's minimum required liability coverage

A A vehicle owned by the government ***Vehicles owned by any governmental agency do not meet the definition of uninsured motor vehicles. Other vehicles that are not considered uninsured motor vehicles are company cars, vehicles owned or operated by a self-insurer, vehicles that operate on rails or crawler treads, off-road vehicles, and vehicles used as a residence.

Under Part D - Coverage for Damage to Your Auto of the Personal Auto policy, vehicle upset would be covered under: A Collision coverage B Transportation expenses coverage C Other than collision coverage D Comprehensive coverage

A Collision coverage ***As defined in the policy, collision means the upset of the covered auto or non-owned auto, or their impact with another vehicle or object. OTC coverage, also called comprehensive coverage, offers open perils coverage, but excludes collision losses.

If an insured has comprehensive physical damage coverage provided by their Personal Auto policy, the insurer would deny which of the following physical damage claims? A Loss to the covered auto's tires caused by road damage B Loss to sound reproduction equipment permanently installed in the covered auto C Earthquake damage to the covered auto D Loss to the covered auto's electronic ignition equipment

A Loss to the covered auto's tires caused by road damage

Insureds who have collision and comprehensive coverage for a covered auto under Part D of their Personal Auto policy are subject to: A One deductible for collision losses and a separate deductible for comprehensive losses B A deductible applicable only to losses covered by comprehensive coverage C A deductible applicable only to collision losses D A single deductible applicable to any loss under Part D

A One deductible for collision losses and a separate deductible for comprehensive losses **Collision and comprehensive coverage both require a deductible, and the deductibles will be indicated separately.

If a bird hits a windshield and breaks it, which Personal Auto policy coverage would pay the loss? A Other Than Collision coverage B Supplementary payments C Collision coverage D Uninsured motorists coverage

A Other Than Collision coverage ***Coverage for damage caused by contact with a bird or animal is included under Other Than Collision coverage under Part D - Coverage for Damage to Your Auto.

In the event a Personal Auto policy is to be terminated, which of the following provisions applies? A Proof of mailing a notice is considered sufficient proof that the insurer provided a termination notice B If the insurer chooses to nonrenew the policy, an oral notice is required C Insurers may only cancel a policy within the first 60 days of the policy's effective date D Any insured may cancel the policy anytime

A Proof of mailing a notice is considered sufficient proof that the insurer provided a termination notice ***Proof of mailing is considered sufficient proof of notice. The named insured shown on the Declarations has the right to cancel the policy at any time. The insurer may also cancel the policy at any time, but if the policy has been in effect for at least 60 days, it can only do so for certain reasons. Advance written notice is required for all termination notices, and oral notice alone would not be sufficient.

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 $125,000 B $120,000 C $170,000 D $150,000

B $120,000

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 $58,500 B $50,000 C $49,500 D $83,000

B $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.

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 50 miles B 25 miles C 10 miles D 100 miles

B 25 miles

A standard Personal Auto policy considers all of the following to be uninsured motor vehicles, except: A A vehicle with insurance from an insurer that becomes insolvent B A vehicle that is being used as a residence C A hit-and-run vehicle whose owner or operator cannot be identified D A vehicle with no liability insurance coverage

B A vehicle that is being used as a residence ***Vehicles used as a residence are excluded from the definition of an uninsured motor vehicle.

The Extended Non-Owned Coverage Endorsement available to Personal Auto policies should be added by an insured who is: A Renting a motorcycle B Being furnished a company car C Towing a rented snowmobile D Traveling to Mexico and renting a car there

B Being furnished a company car ***The endorsement covers non-owned autos furnished or available for the insured's regular use.

Liability coverage provided by a Personal Auto policy would cover which of the following damages? A Damage to property being transported by the insured in a covered auto B Damage to a private garage rented to the insured, caused by the insured's child driving a covered auto C Damage to a storefront caused by a valet driver operating a covered auto D Damage to a neighbor's riding lawn mower that is in the care of the insured

B Damage to a private garage rented to the insured, caused by the insured's child driving a covered auto ***Liability coverage for property rented to, or in the care, custody, or control of the insured is excluded, except that damage to a residence or private garage rented to, used by, or in the care of the insured would be covered. Because valet drivers are engaging in the business of parking motor vehicles, any damage accidentally caused by them would not be covered by the auto owner's PAP.

Part B of a Personal Auto policy would pay for which of the following expenses? A Cost of an ambulance after a third party is injured in an accident caused by an insured B Funeral service expenses incurred by an insured C Loss of income after an insured is slandered D An insured's pain and suffering

B Funeral service expenses incurred by an insured ***Part B - Medical Payments Coverage pays reasonable expenses incurred by an injured insured for necessary medical and funeral services. The medical expenses of an injured third party would not be covered by Part B, and damages awarded against the insured for those expenses would be covered by Part A - Liability Coverage. Pain and suffering is not a medical expense, and slander is a form of personal injury.

An insurer has the right to do all of the following regarding a Personal Auto policy, except: A Comply with its policy obligations when the insured is insolvent B Transfer its subrogation rights to the insured C Deny coverage if an insured submits a fraudulent claim D Make premium changes if the number or use of insured vehicles changes

B Transfer its subrogation rights to the insured

Which of the following uses of a vehicle is not excluded under Part B - Medical Payments Coverage of a Personal Auto policy? A A neighbor uses the insured's car without permission B An insured drives a company car C An insured uses a pickup truck for incidental purposes D An insured rides a motorcycle

C An insured uses a pickup truck for incidental purposes ***Bodily injury sustained by an insured is not covered if the insured is using a vehicle while engaged in business. However, this exclusion includes a coverage giveback that applies to private passenger autos, pickups, vans, and owned trailers. This exclusion applies to the business use of commercial vehicles.

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 Hail B Fire C Driving into a tree D Larceny

C Driving into a tree ***Collision means the upset of the covered auto or its impact with another vehicle or object, meaning damage caused by the running into a tree would be covered under collision coverage.

The named insured's spouse will not be considered an insured on the named insured's Personal Auto policy if: A The spouse lives in the same household, but insists they will not operate the auto B It has been 60 days since the spouse moved to a different residence away from the named insured C It has been 90 days since the spouse moved to a different residence away from the named insured D The spouse lives in the same household, but does not have a driver's license

C It has been 90 days since the spouse moved to a different residence away from the named insured ***The named insured's spouse is no longer considered an insured at the end of 90 days following the spouse's change of residency. If the named insured's Personal Auto policy expires, or another Personal Auto policy names the spouse as a named insured, that may also terminate the spouse's status as an insured. The named insured's resident spouse is considered an insured even if they do not operate the auto or have a driver's license.

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 Not provided because there is an exclusion for damage to property in the insured's care B Provided on a primary basis C Provided on an excess basis D Shared pro rata between the insured's policy and the policy on the vehicle

C Provided on an excess basis ***The insured's policy will provide excess coverage for the use of a non-owned auto, and it will only provide liability coverage when the auto owner's PAP has exhausted its liability limits. In other words, the car owner's coverage is primary, and the driver's coverage is excess.

Supplementary payments provided by a Personal Auto policy's liability coverage include payments for all of the following, except: A Bail bonds, up to $250 B The insured's loss of earnings due to trial attendance, up to $200 per day C The insured's loss of income due to bodily injury after an accident, up to $200 per day D Appeal bond premiums

C The insured's loss of income due to bodily injury after an accident, up to $200 per day ***Supplementary payments are expenses incurred in connection with the defense provided by the insurer for covered legal claims brought against the insured. These include the cost of bail bonds (up to $250), premiums on appeal bonds, interest accrued after a judgment is rendered, the insured's loss of earnings due to attendance of trials or hearings (up to $200 per day), and other reasonable expenses incurred at the insurer's request.

A Personal Auto policy provides medical payments after an accident for bodily injuries sustained by: A The named insured living in the van involved in the accident B The named insured's nonresident relative while occupying an auto that is owned by the insured but not covered by the policy C The named insured's tenant while occupying Your Covered Auto with permission D The named insured's spouse while using a covered auto as a taxi

C The named insured's tenant while occupying Your Covered Auto with permission **Insureds under Part B of the PAP include any person occupying a covered auto, as long as they have reasonable belief of entitlement to do so. Part B excludes coverage for bodily injuries sustained while occupying vehicles used as a residence or as a public or livery conveyance. It also excludes coverage for bodily injuries sustained while occupying a vehicle that is owned by the insured but not considered a Your Covered Auto.

In the event of an accident, all of the following people may receive medical payments under a Personal Auto policy, except: A The named insured's foster child, who is struck by an auto while on a crosswalk B A family friend, who is a passenger in a covered auto C The named insured, who is struck as a pedestrian by an ATV D The named insured, who is occupying a rental car

C The named insured, who is struck as a pedestrian by an ATV ***Part B of the PAP defines an insured as the named insured or any family member occupying any auto, or acting as a pedestrian when struck by a motor vehicle designed for use on public roads. Because ATVs are not designed for use on public roads, the named insured would not be covered by Part B of their Personal Auto policy. Insureds under Part B also include any other person occupying a covered auto, like a passenger.

Under a Personal Auto policy, all of the following are correct about medical payments coverage, except: A Payments under Part B will not be duplicated if other parts of the policy also provide coverage B The named insured and family members are covered if injured as pedestrians C The policy limit is applied on a per occurrence basis, not per person D Insured passengers must be occupying Your Covered Auto in order to be covered

C The policy limit is applied on a per occurrence basis, not per person ***The limit applying to Part B - Medical Payments Coverage is the most the insurer will pay to each person injured in any one accident, meaning it is a per person limit and not a per occurrence limit. If other parts of the policy provide coverage, payments will not be duplicated. The named insured and their family members are considered insureds while occupying any auto or while acting as a pedestrian. Insureds who are not the named insured or family members must be occupying Your Covered Auto in order for Part B coverage to apply.

N has a Personal Auto policy with 30/60/15 limits. After an accident where N was at fault, $45,000 in damages is awarded against N for bodily injury to the other driver and $10,000 in damages is awarded against N for property damage to the other driver's car. N also incurred defense costs equal to $30,000. How much will N's insurer pay? A $85,000 B $60,000 C $75,000 D $70,000

D $70,000 ***In total, the insurer will pay $70,000. The per person bodily injury limit caps the insurer's coverage for bodily injury damages at $30,000. The $10,000 in damages for property damage is under the per accident property damage limit, so those damages are covered in full. Defense costs are paid in addition to the limit of liability, so those expenses are paid without regard to policy limits. $30,000 + $10,000 + $30,000 = $70,000.

A temporary substitute vehicle is not considered a Your Covered Auto if it is used to substitute for which of the following? A A van recently purchased by the named insured B A private passenger auto shown in the Declarations C A trailer owned by the named insured's resident spouse D A rental car that broke down

D A rental car that broke down ***As understood by the PAP, a temporary substitute is a non-owned auto or trailer being temporarily used to substitute for a covered auto that is unavailable due to breakdown, repair, servicing, loss, or destruction. A rental car is not included in the definition of Your Covered Auto, so a vehicle replacing a rental car would not be considered a temporary substitute.

An insured with collision and comprehensive coverage on a Personal Auto policy is using a temporary substitute auto while their owned auto is out for servicing. Which loss would be excluded by physical damage coverage provided by the insured's policy? A A flood destroys the auto B The auto's tires are stolen C All losses to any non-owned auto are excluded D A valet driver crashes the auto into another vehicle

D A valet driver crashes the auto into another vehicle ***Part D excludes losses to covered non-owned autos that are maintained or used by a person engaged in the business of selling, repairing, servicing, storing, or parking vehicles. Theft and flood losses are covered by comprehensive coverage.

Liability coverage under Part A of a Personal Auto policy would be excluded for all of the following, except: A Damage caused by a snowmobile B Use of a non-owned vehicle without permission C Intentional damage caused by the insured D A vehicle driven by an unlicensed driver

D A vehicle driven by an unlicensed driver ***Part A will not provide coverage for intentional damage caused by the insured, damage caused by an insured who is using a vehicle without reasonable belief of entitlement, or damage caused by vehicles designed for use off public roads, such as ATVs. As long as the unlicensed driver is using a covered auto with permission, the driver's liability is covered. For example, property damage caused by a student driver using the named insured's car would be covered.

Unendorsed Personal Auto policies would refuse to provide liability coverage for: A An SUV used in a share-the-expense car pool B A 5,000-pound pickup truck used to transport farm goods C A non-owned golf cart D A vehicle with fewer than four wheels

D A vehicle with fewer than four wheels ***The PAP does not provide liability coverage for vehicles with fewer than four wheels or those designed for off-road use, except under certain circumstances.

Which of the following claims would be covered by collision coverage under Part D - Coverage for Damage to Your Auto of a Personal Auto policy? A Damage to the auto caused by collision with an animal on the roadway B Breakage of the windshield caused by collision with a stone or other missile C Damage to the auto caused by objects blown into it during a tornado D Damage to the insured auto's bumper when the auto crashed into a tree

D Damage to the insured auto's bumper when the auto crashed into a tree ***Part D of the policy specifically stipulates certain causes of loss that are not considered collision. They include missiles or falling objects, fire, theft, explosion, windstorm, and contact with a bird or animal, among others. Collision with another vehicle or tree, or overturn of the vehicle, is covered by collision coverage.

Under Part A - Liability Coverage of a Personal Auto policy, which of the following statements regarding the limit of liability is incorrect? A A combined single limit is the maximum the policy will pay in any one accident for bodily injury and property damage B The limit of liability is the maximum the policy will pay regardless of the number of insureds C The limit of liability is the maximum the policy will pay regardless of the number of vehicles involved in the accident D If the loss is covered under more than one part of the policy, payment will be duplicated

D If the loss is covered under more than one part of the policy, payment will be duplicated

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 UP to $200 per day for the insured's lost earnings due to the trial C Reasonable legal expenses incurred at the insurer's request D Medical payments for an occupant of an insured vehicle

D 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 Automobile used to transport farming materials C SUV for an individual's personal use D Pickup with gross vehicle weight of 12,000 lbs.

D 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.

The limit of liability of Part D - Coverage for Damage to Your Auto under a Personal Auto policy states that the limit is: A The lesser of the market value of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality B Equal to the limit of liability of Coverage A C Reduced by an amount equal to losses paid on the covered auto D The lesser of the actual cash value of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality

D The lesser of the actual cash value of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality