Property & Casualty Practice Exam: Personal Auto
Calculate the amount the insurer would pay, under a PAP, for a loss in the following circumstances, with the following coverage limit: Collision coverage - $500 DED, other-than collision coverage - $50 DED. Damage to the insured's vehicle - $1,050 after the insured misses a stop sign and hits another vehicle. A) 550 B) 1050 C) 500 D) 1000
A
Car A is in an accident with car B. A suffers $10k of damage but is determined that A is 25% responsible for the accident. How much would A receive under comparative negligence rules? A) 7.5k B) 10k C) 0 D) 2.5k
A
If an insured purchases an all-terrain vehicle (ATV), what endt can be added to the Personal Auto Policy to insure the vehicle? A) Misc. type vehicle endt B) Recreational vehicle endt C) ATV endt D) There is no endt available for this exposure
A
If an insured rents an auto while on vacation, what coverage, if any, will be available for physical damage coverage under a personal auto policy? A) Broadest coverage on any auto shown in the declarations B) Coverage of the last auto shown in the dec C) least coverage on any auto shown on the dec D) No coverage available
A
If an insured under a personal auto policy leaves a covered auto dealer for repairs, and the auto is involved in an accident while being test driven by employee of the dealer, how will the personal auto policy respond to liability claims A) PAP is excess B) PAP will share the dealer's policy on a pro-rata basis C) There is no coverage under the PAP D) PAP is primary
A
If an insured with a personal auto policy has an accident in a state with personal injury protection, how does the policy respond? A) Coverage automatically is broadened to provide PIP B) PIP coverage is provided only for medical providers in that state C) Coverage remains as written D) The insured may apply for the additional PIP coverage within 10 days of the accident
A
Kim's car is insured with a personal auto policy. The coverage includes medical payments with $2000 limits, which of the following is true statement about the medical payment coverage for necessary medical expenses? A) Kim gives her neighbor a ride to the store in the insured car. She has an auto accident in which they each incur over $2k in medical expenses. The maximum amount that Kim's policy will pay is $2k to her and $2k to her neighbor. B) Kim's daughter is struck by a car while crossing the street. Kim's policy will pay nothing because Kim's daughter was not in a car at the time of the accident. C) Kim is injured an accident while riding in her neighbor's car. The nighbor's policy covers $2k in medical payments. The max. amount that would be paid by both policies for Kim's injuries is a total of 2k. D) Kim's daughter is struck by a car. Kim's policy will pay nothing because she was riding her bike in the street.
A
Max's personal auto policy (PAP) has liability and collision coverage. His neighbor's car has liability coverage only. Max borrows his neighbor's car to go the store and has an accident that is his fault. He damages his neighbor's car another car. Max PAP provides: A) Liability coverage that is excess of his neighbor's liability coverage. his collision coverage also applies, but on a primary basis B) Collision coverage bc the neighbor does not have thisd coverage. Liability coverage does not apply C) Collision and liability coverages on a priomary basis D) Liability coverage that is excess his neighbor's liability coverage. The collision coverage does not apply
A
Of the following loss scenarios, identify the one that is excluded from coverage under both the collision and other than collision coverage of an insured's PAP: A) A palm pilot computer owned by the insured is stolen from the vehicle while parked in the insured's driveway. There are forcible signs of entry into the vehicle B) A sign is blown off a building during a wind storm, causing severe damages to the vehicle while it is parked in an outdoor public parking lot. C) The vehicle is swept downstream during a flashflood. D) Theft of the vehicle occurs when the insured leaves the keys in the ignition while inside a grocery store
A
The best definition of the term "collision," as found in a PAP, is which of the following? A) Hitting any other vehicle or object with the insured vehicle, or the upset of the insured vehicle B) Hitting any moving or flying object such as a bird or animal with the vehicle C) Hitting another object with the vehicle D) Hitting only another while the insured vehicle is being driven on public roadways and freeways
A
The collision of a Personal Auto policy does not cover the following loss situations, EXCEPT: A) Large limbs and branches of a tree that have fallen into the street as a result of a windstorm. The insured collides with them. B) Flood water that damages the insured's vehicle. C) A dog belonging to a enighbor runs into the street and is injured when the insured unintentionally strikes the dog while he/she is driving the insured vehicle. D) These are all included under the collision coverage section of PAP
A
The territorial limits of a PAP include which of the following? A) Toronto B) Los Cabos C) Hong Kong D) All are excluded
A
To be covered for a hit and run accident under the Uninsured Motorist Property Damage coverage of a PAP, what is required to be provided to the insurer? A) License number of the hit and run vehicle B) Photos identifying the hit and run vehicle C) Testimony of an eyewitness to the accident D) Legal affidavit describing the accident
A
Under a PAP, who qualifies as an insured while using a covered auto? A) Any person B) Only the named insured and resident relatives C) Only the named insured, resident relatives, and other entities responsible for the use of the auto D) Only the named insured, resident relatives, and passengers
A
What coverage is available under the misc. type vehicle endt? A) All coverage under the personal auto policy B) liability and physical damage only C) physical dmage only D) liability only
A
What is one of the principle rating factors under Prop 103 allowed for personal auto policies? A) Safety driving record B) Credit record C) year of the auto D) make of the auto
A
What is the limit per day for transportation expenses in an unendorsed Personal Auto Policy, in the event of theft, after is is reported and auto is not returned within 48 hours of theft? A) 20 B) 10 C) 30 D) none
A
Which of the following may be covered under the Physical Damage insuring agreement of a Personal Auto policy? A) Loss of a CD player installed in the vehicle B) Theft of a CB raido C) Damage to the vehicle caused by an engine failure D) All are covered
A
Which of the losses listed would be covered under Dick's personal auto policy other than collision coverage? A) Someone shoots Dick's car rear window while the car is parked on the street over night B) Dick's suitcase is stolen from his car while car is parked at the airport C) Sides and top of Dick's car are damaged when it rolls over an icy curve D) Dick locks his keys in the car, and then breaks a window to gain quick access
A
A PAP contains the following limitations; $30,000person and $50,000/accident for bodily injury. An accident occurs that injures three people resulting in a number of lawsuits. The outcome of lawsuits found the insured to be liable and responsible for the following damages: $10,000 for the first person; 13,000 for the second person and $35,000 for the third person; what will the policy pay? A) 30k B) 50k C) 45k D) 53k
B
All of the following are considered an uninsured motor vehicle, according to policy definitions found in a PAP, except: A) A vehicle that was driven by a hit and run driver who cannot be identified B) A vehicle that is self-insured bc it is owned by a state agency C) A vehicle that has no personal auto liability or bond required by law D) A vehicle that is covered by a PAP, but the company has recently been declared insolvent by the commissioner
B
All of the following are principal rating factors under Prop 103 for PAP, except: A) Driver's safety record B) Number of listed drivers C) Years of driving experience D) Annual miles driven
B
An insured has a Personal Auto Policy and did not pay the initial insurance premium when it was due. Insurer cancels the policy for non-payment. How many days notice must the insurer give? A) 20 B) 10 C) 15 D) 5
B
An insured living in California has the following coverage's under PAP: with liability, medical payments, and loss other than collision. The individual vehicle is stolen from her driveway and then totally wrecked. Which of the following cover this loss? A) This loss is not covered B) Other than collision coverage C) Property damage covered D) Collision coverage
B
Damage which is the result of a hailstorm, is covered in which of the following ways under a personal auto policy? A) Covered as a collision loss B) Covered as an other than collison loss C) Excluded as a catastrophic event D) Covered only if the vehicle was under some type of covering at the time of the damaging storm
B
If an insured rents vehicle while on vacation in the U.S, what coverage is provided under the personal auto policy? A) Liability coverage only B) All coverage is in force in the PAP C) No coverage available because the vehicle is not a "covered auto" D) Liability, medical, and uninsured motorist coverage only
B
Steven's (unendorsed) PAP liability coverage would pay for: A) Damage or injury caused intentionally by Steven B) The cost of repiaring the neighbor's fence that Steven damaged due to the negligent operation of his car C) Steven's rental care expense, when his car is unusable due to a collision that was not his fault D) Steven's broken windshield caused by a rock thrown by the tire of a passing car
B
The limit of liability under a PAP under the section "coverage for damage to your auto" is typically the lesser of the dollar amount needed to replace or repair the damaged property or the _____ of the damaged property. From the following choices, fill in the blank with the correct answer: A) RC B) ACV or fair market value C) Guaranteed RC D) RC less DED amount
B
Under a PAP, how would the damage sustained to an insured vehicle from the insured smashing into a large fallen tree that had come down several hours earlier as the result of a lightening strike be covered? A) This type of loss would not be covered as it would be impossible to determine when the lightening actually struck B) Under the collision section of the policy C) Under the other than collision section of the policy D) No coverage. Acts of nature losses are not covered under PAP
B
What endt can be used to insure a motorcycle under a PAP? A) No endt is available to broaden a PAP to cover motorcycles B) Misc type vehicle endt C) Named non-owner coverage endt D) No endt is needed; the unendorsed PAP covers motorcycles
B
What is the minimum number of days that an insurer must give an insured, prior to canceling a policy for non-payment? A) 30 B) 10 C) 20 D) no minimum
B
When an auto insurance policy is cancelled at the request of the insured, and the insurance co. keeps all earned premiums, in addition to an amount to pay for overhead expense incurred by the insurer, it is referred to as what type of cancellation? A) Flat rate type B) Short rate type C) Pro-rata type D) None
B
When does a Personal Auto Policy require the insured to notify the police? A) Thefts only B) Hit and run accidents and thefts C) No requirement to notify the police D) For all accidents and thefts
B
Which of the following coverages may you buy with a named operator policy? (Choose most complete answer) A) Liability only B) Liability, uninsured motorist, medical payments, collision, and other than-collision C) Liability and uninsured motorist D) Liability, uninsured motorist, and medical payments
B
Which of the following events within the last 3 years would disqualify an individual from receiving a good driver discount? A) A not-at-fault accident involving minor bodily injury B) An at-fault accident involving minor bodily injury C) An at-fauly accident involving only property damage D) A moving violation while driving a company car during business hours
B
Which of the following is a true statement about CAARP? A) Commercial risks are not eligible for CAARP B) Minimum liability for CAARP policies are 15k/30k/5k C) CAARP offers dwelling coverage, but not homeonwersd D) Only agents with 2 or more years of experience are eligible to place business with CAARP
B
Your insured client has an auto policy with liability and collision coverage's. the insured experience an at fault accident the first time he uses the neighbor's truck which has liability coverage only. His PAP provides coverage and will pay for the entire loss since he was driving the truck A) This is how the insurer would handle this claim B) This is not how the insurer would handle this claim
B
A Personal auto policy is written for Lisa providing liability coverage. Which of the following auto liability situations would not be covered unless Lisa has an endorsement attached and paid an additional premium? A) Lisa's car is being repaired. She drives into a telephone pole while driving a "temporary substitute" auto B) Lisa trades in her car, and runs over a pedestrian while driving her new car home from the dealership. She did not let her agent know of the new car at the time of the accident. C) Lisa destroys a mailbox while driving a (non-owned) company car furnished for Lisa's regular use D) Lisa has an accident while towing her rowboat trailer. Trailer breaks loose and damages a parked car.
C
A car is insured using a PAP. The car is damaged by hail. The loss is: A) Covered as a collision loss B) Excluded bc of the uninsurable catastrophic potential damage by hail C) Covered as other-than-collision loss D) Covered only if the car was in a garage or shelter at the time of the hail
C
After a collision loss, the Personal Auto policy requires the insured to: A) Submit a written notice of the loss to the company B) Press charges against the other aprty C) Allow the company to inspect the damaged property before it is repaired D) Promptly notify the police of the accident
C
An auto insurance company is permitted to cancel a PAP for which reasons listed below? A) Insured person attains the age of 65 B) Insured doesn't send the insurance company a written notification of an accident within 20 days of the accident where the insured was more than half at fault C) The insured's driver license is suspended. This is the person that normally drives the vehicle. D) Any of these are reasons for an insurance company to cancel a PAP.
C
An endorsement and an extra premium would be required for which of the following liability losses under a PAP? A) These would not be covered under a PAP bc of the uniqueness of each situation B) The insured collides with a cement retaining wall while pulling a camper trailer with the insured vehicle C) The insured regularly uses, at the permission of his employer, a company owned car, and has an accident with the vehicle D) The insured experiences an accident while driving her new personally leased vehicle home from the dealer
C
An insured's vehicle is stolen. Following this the insured rents a replacement vehicles for two months until her auto is repaired by the insurer. Will her personal auto policy pay for the cost of the rental, and if so how? A) Policy will pay all needed expense the insured incurs for the rental car B) Rental care expense will not be paid C) Policy will pay all needed expense the insured incurs for the rental car up to the stated limits found in the policy D) The policy will pay all needed expenses the insured incurs for the rental car only if the insured has an endt for extended transportation expenses in the policy
C
An unendorsed personal auto policy would cover which of the following under the liability coverage part? A) The insured's windshield is smashed when a brick falls from a bridge that is being constructed over a freeway where the insured is driving B) A rental car expense after the insured's vehicle is damaged and is not drivable following an accident that is not the fault of the insured C) The repair expenses thare needed to fix the damage to a neighbor's fence that was the result the insured negligently driving trhough it while driving unsafely D) Property damage or bodily injury that is intentionally caused by the insured
C
Damage done by an earthquake to an insured auto is covered by the PAP: A) Under no circumstances. Earth movement losses are not covered B) Only if the car was in the insured's garage C) If the other than collision coverage is purchased D) If the earth movement endt is purchased
C
How would the damage resulting from hail be covered under a PAP? A) Covered only if the vehicles was parked at the insured's location as named in the policy B) Covered as a collision C) Covered as other than collision loss D) Not covered as it is considered an act of God
C
If an insured borrows a neighbor's vehicles to run a personal errand, how do the policies respond in the event of an auto accident? A) The driver's policy is primary and the neighbor's policy is excess B) Both policies respond on a pro-rate basis C) The neighbor's policy is primary and the driver's policy is excess D) Only the neighbor's policy is excess
C
In reference to the coverages provided in the basic form, the Boat Owners Policy is similar to what other policy? A) Commercial ocean marine policy B) Homeowners policy C) The personal Auto Policy D) A commercial inland marine policy
C
Jackie's personal auto policy(which is unendorsed) would provide payment for which of the following? A) Expense incurred as the result of an intentional injury caused by Jackie B) Expense of a rental car when Jacki's vehicle is not drivable as the result of a collision that was not her fault C) Expense of repairing a neighbor's wall, surrounding a garden, that Jackie accidentally backed though D) Expense incurred as the result of cracked windshield from a rock thrown by the tire of a truck
C
Lee has a PAP with $250 DED collision coverage and $100 DED other-than-collision coverage. He runs a stop sign and hits another car. There is $1.3k worth of damage to his (the insured) car. How much would the insurer pay for the damage to Lee's car? A) 1.2k B) $950 C) 1.05k D) Nothing since it was Lee's fault
C
Lively conveyance is best described as: A) Share the expense carpool B) Vehicle for hire to transport property C) Vehicle for hire to transport people D) Commercial vehicle with more than 4 wheels
C
The PAP collision deductible is $1k and the other than collision ded is $500. How much would the insurer pay for an accident involving the overturn of one vehicle, resulting in $2k of damage? A) 2k B) 0k C) 1k D) 1.5k
C
The PAP coverage for damage to your own auto states that the limit of liability is the lesser of the amount necessary to repair or replace the property or the: A) RC of the stolen or damaged property if the insured has purchased an amount of coverage that is at least 80% of the RC B) RC of the stolen or damaged property C) ACV of the stolen or damaged property D) Guaranteed RC
C
The limited Mexico endorsement applies to trips to Mexico with duration of: A) 14 days or less B) 7 days or less C) 10 days or less D) 2 days or less
C
The personal Auto policy towing and labor endt pays for: A) Towing and labor charges up to 1k per year B) Cost of towing the disabled car to the garage and up 2 hours fo labor expenses at the garage C) Cost of labor only if the labor is performed at the place of disablement D) Expense of towing a disabled car to a garage nearest the insured's home
C
The personal auto policy territory limits include: A) Mexico city, Mexico B) London, England C) Montreal, Canada D) Tokyo, Japan
C
Under a PAP, how would the damage sustained to an insured vehicle as the result of an earthquake be covered? A) Only if the earth movement and extended coverage is purchased B) Under the collision section of the policy C) Under the other-than-collision section of the policy D) No coverage. Catastrophic perils are excluded under a PAP
C
Under a personal auto policy. If a newly acquired auto is to replace the covered auto with liability coverage only, how long does the insured have to request collision coverage? A) 30 days B) 14 days C) 4 days D) Immediately
C
Under an unendorsed personal auto policy, transportation expense coverage applies to A) Other than collision losses only B) Collision and other than collision losses C) Theft only losses D) None, there is no coverage
C
Under the liability portion of an unendorsed personal auto policy, what coverage is available if the named insured is operating a company car a regular basis? A) Broadest coverage of any of the autos listed in the declarations B) Financial responsibility coverage limitations C) Policy excludes this usage D) Coverage of the vehicle primarily operated by the named insured
C
Under the liability portion of an unendorsed personal auto policy, what coverage is available if the named insured is operating a company car a regular basis? A) The broadest coverage of any autos listed in the dec B) The financial responsibility limits C) The policy excludes this usage D) The coverage primarily operated by the named insured
C
Very often the DED amounts under the collision and other than collision sections of a PAP are different. With this in mind, what would be the amount that an insurer would pay for a loss under the following circumstances? $500 DED for other than collision and $250 for collision losses. An accident occurs when an insured runs a red lights and collides with another car, causing $1,750 worth of damage to his vehicle. A) 1.2k B) 0 C) 1.5k D) 1k
C
What coverage is available under the extended non-owned liability coverage? A) Liability only B) Liability and physical damage C) Liability and medical payments D) Liability, uninsured motorist, and medical payments
C
What is the limit for sound reproducing equipment under the coverage ENDT for excess sound-reproducing equipment, audio, visual, and data electronics, tapes, records, disks, and other media endt in a PAP? A) 1k B) 500 C) 200 D) The amount scheduled on the ENDT
C
What is the minimum discount percentage for the "good driver" discount? A) 25% B) 10% C) 20% D) 5%
C
What is the requirement and what is provided under the Mexico coverage ENDT to a PAP in CA? A) Provides coerage for insured who live within 25 miles of the US/Mexican border in either country B) Provides liability coverage (primary) for any accident in Mexico within 25 miles of the US border C) Provides liability coverage (excess) for any accident in Mexico within 25 miles of US border D) None of these are covered
C
What kind of coverage would you recommend to one of your insureds who is single and does not own a car, but she does, on occasion drives cars that belong to her friends. Additionally, she is planning a vacation to Florida and will be renting a car while there. A) Extended transporation endt B) Extended non-owner coverage endt C) Named non-owner coverage endt D) These types of exposures would not be insurable
C
Which of the following is not an uninsured motor vehicle as defined by personal auto policies uninsured motorist coverage? A) A hit and run vehicle whose owner or operator cannot be identified B) A vehicle which is covered by an automobile liability policy or bond, but the insuring or bonding company is insolvent C) A vehicle owned by a state agency which self-insures its auto D) A vehicle not covered by an auto liability policy or bond
C
Which of the following is the only reason that an insurer can cancel an auto insurance policy? A) The insured did not notify the ins co of an at-fault loss with a dollar mount of over $500 B) Insured has reached the age of 85 C) The drivers license of the individual who usually operates the vehicle that is insured by the policy and who is insured by the policy has had his license suspended temporarily D) None of these are valid reasons for an insurer to cancel. The insurer can only cancel within 30 days of policy renewal
C
Which of the following losses is not covered by either the Personal Auto Policy collision or other-than-collision coverage? A) David's car is washed away during a flood B) David's car is severely damaged by a storm when a sign is blown off the roof of a building, hitting his car C) David leaves his personal (non-business) laptop computer in his car over night. Car is parked in the driveway outside fo his home. Computer is stolen from his car. D) David's car is stolen when he leaves the keys in the ignition and the doors and windows are unlocked while he runs into the grocery store
C
Which of these is not included in the definition of uninsured motor vehicle in a PAP? A) A vehicle which was the cause of a hit-and-run and the driver cannot be found or identified B) Vehicles insured by an insurance co in the State of CA that has been determined by the commissioner to be financially insolvent C) Vehicles that are owned by an agency of the State that self-insures the vehicle D) Vehicles not protected an auto liability policy or a bond
C
Your insured has a personal auto policy that provides medical payment coverage $2000. Of the following statements, which is true regarding the amount payable under this section of the policy? A) The insured's son is hit by a car while skate-boarding in the street. Policy pays nothing. B) The insured's daughter is hit by a car as she crosses the street, but is not covered by the insured's policy as she was not a passenger in the vehicle that is insured under the policy at the time of the injury. C) The insured is car-pooling to work with her neighbor whne they are in an accident. Both are injured and incur almost $3k each in medical expenses. The insured and her enighbor would each be paid $2k from the policy. D) The insured is injured in an accident while riding as a passenger in his neighbor's car, both of which have 2k medical payment coverage. The insured's medical expenses are 2k.
C
A PAP contains the state required liability, med payment coverage and as other-than-collision coverage. How would a claim be paid fi there were a loss after an insured vehicle is stolen and then wrecked? A) Claim would be paid under liability payments B) Claim would be paid under medical payments C) Claim would not be paid D) Claim would be paid under "other than collision" coverage
D
A PAP will cover all the following types of losses, EXCEPT: A) During a severe wind and rainstorm, a large sign is blown off a store and damages an insured vehicle B) A flood damages the insured's home washing the car down a nearby riverbed C) The insured leaves the keys in the ignition and the driver's door unlocked and quickly goes into a grocery store. The vehicle is stolen. D) A palm top computer, personally owned by the insured, is stolen from the insured's car while it is parked in her driveway at home.
D
A Personal Auto policy insured's car was a total loss when the car was stolen and wrecked. The insured has the following coverages: liability, medical payments, and other than collision. Her PAP: A) Liability coverage will pay for the loss B) Medical payments will pay for the loss C) Wil not pay for this loss - no coverage D) Other than collision will pay for the loss
D
A private passenger vehicle is added to an insurance policy. According to the CA insurance code: A) No vehicle inspection is required if both comp & collision coverages are carried B) Requires a vehicle inspection for all add cars C) Requires a vehicle inspection only if both comp & collision coverages are carried D) Makes no mention of vehicle inspection requirement
D
A single does not own or lease an automobile. She occasionally drives her housemate's vehicle on an emergency basis. She is going on vacation and will have to rent a car. To obtain full automobile insurance coverage when this occurs, what should she purchase? A) Transporation extension endt B) Misc vehicle endt C) Extended non-owned coverage endt D) Named non-owned coverage endt
D
All of the following expenses are covered, in addition to the limits of liability, under coverage A of Personal Auto Policy, EXCEPT: A) Loss of earnings to attend trials at the company's request B) Cost of bail bonds related to a covered accident C) Premium for appeal bonds D) Pre-judgement interest
D
All of the following factors can be used, according to the Insurance Code in CA, to determine auto insurance policy rates. In addition to any other factors, the insurance Commissioner is allowed to adopt and include by regulation: A) # of miles driven annually by the insured B) Age of the insured C) Driving safety record of the insured D) 1 and 3 only
D
All of the following vehicles are eligible for coverage under a PAP, except: A) A pickup truck leased to a husband and wife B) A conversion van leased to a 19 y/o C) An SUV owned by a 25 y/o D) A private passenger auto owned by a partnership
D
An individual is driving home from the store with a new 48-inch flat screen TV. An accident occurs and the TV is destroyed. The driver carriers a Homeowners Policy (HO) as well a PAP. Will the damaged TV bc covered? If yes, how? A) No there would be no coverage for the TV. B) Yes under the property damage coverage part of his PAP C) Yes under the other than collision coverage part of his PAP D) Yes under the personal property part of his HO policy
D
CA has lower financial responsibility than most other states. if Randy, a CA PAP insured, carrying minimum limits on coverage, has an accident in a state that required higher limits then: A) He is breaking the law of that state unless he has added the "other-state" endt B) Policy will provide the higher limits retro, but only when he has paid the diff. in premium C) The unendorsed policy does not cover the out-of-state operation of the auto D) The policy will auto provide the higher required limits - at no extra charge
D
If a motor home is scheduled on a miscellaneous type of vehicle endorsement, all of the following property covered, EXCEPT: A) Awnings B) Refrigeration facilities C) Cabanas D) Luggage
D
If an individual does not own an auto, nor have regular use of an auto, what endorsement to a Personal Auto Policy could be used to properly protect that individual? A) No coverages available B) Misc. type vehicle ENDT C) Extended non-owned liability ENDT D) Named non-owned coverage
D
If an insured requests coverage in a timely manner for a newly acquired auto under an existing PAP, what coverage is provided before the request is made? A) Statutory min. required coverages B) Average coverage for all vehicles shown on the dec C) Lowest coverage for any vehicle shown on the dec D) Broadest coverage for any vehicle shown on the dec
D
In addition to paying legal damages, but without deducting from the policy's limits, which of these would be covered in a personal auto policy? A) The premiums on appeal bonds B) Costs of defense C) Expenses that are incurred by the insured, and considered reasonable, at the insurance company's request D) These are all covered in addition to the limits stated in the policy contract
D
In the event of recovery of stolen property, which of the following is an insurer's option when making a settlement with insured under a Personal Auto policy? A) have the insured purchaser place the auto at an auto section B) Demand that the insured first attempt to settle with the responsible party C) Instruct the insured to repair the vehicle at a designated shop D) Return stolen property to the address shown in the policy
D
Jim, your unmarried homeowner's insured does not own his car. He is planning a vacation trip to Florida and will be renting a car. He also drives cars belonging to friends occasionally. To protect Jim in theses situation, you would recommend a personal auto policy with a: A) Extended non-owned coverage endt B) Extended transportation endt C) misc. vehicle endt D) Named non-owner coverage endt
D
Newly acquired motorcycles are not automatically covered under a PAP bc: A) Motorcycles are too dangerous to insure B) Motorcycles cannot be insured under the PAP C) Motorcycles are insured under a Homeowners Policy D) The unendorsed policy does not cover two-wheeled vehicles
D
Of the following choices, which is correct regarding why a motorcycle is not auto covered under a PAP? A) They are covered auto within limitations B) The risk associated with these types of vehicles does not match the risk profile of an automobile C) A two-wheeled vehicle is covered under a Homeowners policy since it is not considered an auto D) An unendorsed PAP does not auto cover two wheeled vehicles
D
Other than collision coverage of a PAP covers which of the following types of losses? A) The insured must smash a small rear window to obtain access to the vehicle after (accidentally) locking his keys in the vehicle B) Vehicle is damaged when it flips over while sliding and skidding on an icy curve C) Insured has a suitcase stolen from the beack seat of the vehicle while it is parked in a security patrolled parking lot at an International airport D) The windshield of the vehicle is damaged while left overnight on a city street within 5 miles of the insured's residence
D
State of CA DOI minimums for liability coverage are $15k/$30k/$5k. An insured has an accident out of state that has higher financial responsibility limits than CA. Which of these is true? A) Insured must pay an additional premium for the increased differenc ein the requried coverage. B) There is no coverage. C) Policy only pays up to its limits. D) The policy automatically provides the higher necessary limits without an extra premium.
D
The collision coverage of a Personal Auto policy covers: A) A dessert sand storm pitting the car windshield B) A vandal making a deep scratch on the car with a screwdriver C) Collision coverage does nto cover any of these losses D) Damage caused by the insured, driving into a fallen tree, that fell during a storm
D
The limit of liability in a PAP providing coverage for damage to your automobile is stated as the lesser of the amount of necessary to replace or repair the damaged property (vehicle) or the _____. A) Guaranteed RC of the damaged or stolen property B) Guaranteed RC C) RC of the damaged or stolen property but only if the insured carriers at least 80% of the actual replacement cost to value D) ACV of the damaged or stolen property
D
There is exclusion in an automobile insurance issued by admitted insurer in California regarding coverage in Mexico, which can only be provided through an endorsement to PAP. Which is true regarding this endorsement? A) It is liability coverage, on a primary basis, for insureds driving anywhere in the country of Mexico B) There is no coverage unless the loss is reported within 48 hrs of the occurence C) It is a required endt for all PAP issued in CA to Mexican citizens D) It is liability coverage, on an excess basis, provided for losses that occur in Mexico, within 25 miles of the CA/Mexico international border
D
Under an unendorsed personal auto policy, what coverage is available for personal effects? A) All personal property in the auto up to $500 B) Luggage and clothing up to $500 C) Luggage up to $200 D) None of the above
D
Under the CA financial responsibility law, the min. financial responsibility for accidents that involve several people injured in one accident is: A) 10k B) 15k C) 5k D) 30k
D
What is the difference between per accident limit in a split limits policy and the single limits? A) There is no difference B) The per accident limit applies to property damage, and the single limit applies to all claims C) The per accident limit applies to all claims, and the single limit applies only to bodily injuries. D) The per accident limit applies only to bodily injuries and the single limit applies to all claims
D
What would an insurer likely pay if the following were the details surrounding an accident for which the insured was at fault and had BI policy limits of $25k per person and $50k per occurrence? 3 people injured: #1: $11,000 #2: $26,000 #3: $12,000 A) 75k B) 50k C) 49k D) 48k
D
Which of the following cities would fall within the policy territory limits of a PAP issued by CA? A) Madrid B) Acapulco C) Dublin D) Vancouver
D
Which of the following coverages may you buy with a named non-owner liability policy? A) Liability only B) Liability, uninsured motorist, medical payments, collision, and other than-collision C) Liability and uninsured motorist D) Liability, uninsured motorist, and medical payments
D
Which of the following would be covered by the physical damage section of a PAP? A) Theft of an insured's portable CD player which was taken after a window was smashed B) Passengers in the vehicle who are injured in a covered accident C) Mechanical breakdown but only if regular maintenance records can be provided D) None of these are covered
D
Why is a newly acquired motorcycle not automatically covered under the terms and conditions of a persona auto policy? A) Motorcycles are covered through the CAARP B) Motorcycle owners' policies will provide coverage for a motorcycle C) Homeowner's policies will provide coverage for a motorcycle D) These types of vehicles (motorcycles and other types of non-automobiles) are not covered under a PAP that is unendorsed
D
You are the agent for an insured that carries both a homeowners policy and a personal auto policy(PAP) with you through the same insurance carrier. The insured is driving home,(in the auto you have insured),after purchasing a brand new big- screen TV,VCR, stereo, CD/DVD player all in out unit. He collides with a parked car and destroys the new TV. How would this loss be covered? A) PAP other than collision coverage B) PAP collision coverage C) Type of loss, multiple component electronic equipment, is too risky and is therefore not covered D) The Homeowner's policy personal property coverage
D
other than collision coverage of a PAP includes which of the following types of losses? A) Theft of a permanently mounted raido from the insured vehicle B) Theft of the spare tire from the truck C) Theft of a hood ornament D) Theft of any of these would be covered
D
