ARe 143 Assignment 1
On the Personal Auto Policy (PAP), the vehicle identification number (VIN) can be found
On the Declarations page.
Donna owns a car insured by a Personal Auto Policy (PAP) with the minimum liability limits required by her state $10/$20/$5. While on vacation in another state where the minimum liability limits are $15/$30/$5, she causes an accident. For purposes of that loss, her liability limits under her PAP are
$15/$30/$5
Donna owns a car insured by a Personal Auto Policy (PAP) with the minimum liability limits required by her state, $10/$20/$5. While on vacation in another state where the minimum liability limits are $15/$30/$5, she causes an accident. For purposes of that loss, her liability limits under her PAP are
$15/$30/$5. The Out of State Coverage provision applies when an auto accident occurs in a state other than the one in which the covered auto is principally garaged. If an accident occurs in a state that has a law that requires higher liability limits than the limits shown in the declarations, the PAP automatically provides the higher required limits for the accident.
Li insured his car with a Personal Auto Policy (PAP) that has split limits for liability coverage of $50/$100/$25. He was found by a court to be at fault for an accident that injured the other driver and ordered to pay a judgment of $45,000, plus $5,000 in prejudgment interest. How much will Li's insurer pay under his PAP?
$50,000
Rosa's sedan is covered by a Personal Auto Policy (PAP) with split limits for liability coverage of $100/$300/$50. Rosa's friend, Lamont, owns a sports car that is covered by a PAP with split limits for liability coverage of $25/$50/$10. Rosa borrowed Lamont's sports car and caused an accident with another vehicle driven by James. James and his passenger, Fred, were injured and they filed suit against Rosa. A court awarded $35,000 to James for his bodily injuries and $110,000 to Fred for his bodily injuries. Which one of the following will be paid under each policy?
$50,000 under Lamont's policy and $95,000 under Rosa's policy
Rosa's sedan is covered by a PAP with split limits for liability coverage of $100/$300/$50. Rosa's friend, Lamont, owns a sports car that is covered by a PAP with split limits for liability coverage of $25/$50/$10. Rosa borrowed Lamont's car and caused an accident with another vehicle driven by James. James and his passenger, Fred, were injured and they filed suit against Rosa. A court awarded $35,000 to James for his bodily injuries and $110,000 to Fred for his bodily injuries. Which one of the following will be paid under each policy?
$50,000 under Lamont's policy and $95,000 under Rosa's policy.
Which one of the following would qualify as a temporary substitute vehicle under a personal automobile policy?
A car rented by an insured while her own insured auto is being repaired
The Agreement and Definitions page of the Personal Auto Policy (PAP) includes
A general agreement stating that the insurer is providing the coverage subject to payment of premium and to the terms of the policy.
All of the following information is provided on the declarations page of a Personal Auto Policy (PAP), EXCEPT:
A schedule of policy conditions
The medical payments coverage in the Personal Auto Policy (PAP) applies to
Any person occupying a covered auto.
Bo was injured in an auto accident while using his car as a taxicab. Bo's car is covered by a Personal Auto Policy (PAP) that included medical payments coverage. Which one of the following statements about Bo's coverage for the accident is correct?
Bo will not receive medical payments under the PAP because of the Public or Livery Conveyance exclusion.
Which one of the following is an example of a supplementary payment under the liability coverage of the Personal Auto Policy (PAP)?
Cost of bail bonds
For liability, medical payments, and uninsured motorists under the Personal Auto Policy (PAP), a replacement auto is
Covered for the remainder of the policy period, even if the insured does not ask for coverage.
The Part B—Medical Payments Coverage of the Personal Auto Policy (PAP) contains an Other Insurance provision. If two automobile policies from different insurers cover the same owned vehicle,
Each insurer pays its pro rata share.
Regarding the Personal Auto Policy (PAP), which one of the following includes details on coverage related to state-specific laws and regulations?
Endorsements
With respect to a nonowned vehicle, medical payments coverage under a Personal Auto Policy (PAP)
Is excess over other collectible auto insurance that pays medical expenses.
With respect to a vehicle used as a temporary substitute for the insured's covered auto, medical payments coverage under a Personal Auto Policy (PAP)
Is excess over other collectible auto insurance that pays medical expenses. With respect to a nonowned vehicle or a vehicle while used as a temporary substitute for the insured's covered auto, medical payments coverage under a PAP is excess over any other collectible auto insurance that pays medical or funeral expenses.
A temporary substitute auto under the Personal Auto Policy (PAP)
Is treated the same as other nonowned autos for physical damage coverage.
A person, corporation, partnership, or other entity identified as an insured party in a Personal Auto Policy (PAP) Declarations page is known as the
Named insured.
In the auto insurance policy definitions, an eligible private passenger auto, pickup, or van of which the named insured becomes the owner during the policy period is a
Newly acquired auto.
Which one of the following describes a covered auto in the Personal Auto Policy (PAP) definitions?
Newly purchased pickup truck
The Definitions section of the Personal Auto Policy (PAP) defines several words and phrases. Which one of the following words is used in connection with Part B—Medical Payments Coverage and Part C—Uninsured Motorists Coverage, clarifying the coverages provided?
Occupying
Which one of the following sections of the Personal Auto Policy (PAP) would provide coverage for medical costs and loss of wages when the insured is injured by a hit-and-run driver?
Part C—Uninsured Motorists Coverage
The timeframe, beginning with the inception date, during which insurance coverage applies, is known as the
Policy period.
Which one of the following is a component of the Personal Auto Policy (PAP) declarations page?
Rating information
The declarations page of a Personal Auto Policy (PAP)
Shows the name of the insured and the insured's mailing address.
The definitions section of the Personal Auto Policy (PAP) uses
Simple-to-understand language to define important words and phrases that are used throughout the policy.
The Insuring Agreement in Part A—Liability Coverage of the Personal Auto Policy (PAP) addresses all of the following categories, EXCEPT:
Supplementary payments The Part A Insuring Agreement states the insurer's duty to pay damages and defense costs, and defines the persons and organizations insured under Part A. Part A of the PAP contains a separate provision for payment of certain expenses that are considered supplementary payments.
A named insured owns two cars, one covered by a Personal Auto Policy (PAP) and one with no insurance at all. Which one of the following is a correct statement regarding the medical payments coverage provided by the PAP if the insured is injured in a collision while driving the uninsured auto?
The exclusion of other vehicles owned by the insured or available for insured's regular use applies.
Joe and Kitty Clements have a Personal Auto Policy (PAP). Their granddaughter, Katherine, lives with them. Does Katherine qualify as a "family member"?
Yes, as long as Katherine is a resident of the household.
Schedule of Coverages
indicates the coverage and limits that apply to each listed auto along with the premium for each coverage
