Auto Policy Chapter 5
A trucking company owns a large fleet of trucks that transport oil across state lines. According to the financial responsibility requirements set by the Motor Carrier Act of 1980, What is the minimum amount of insurance the company must carry on vehicles that transport oil and certain categories of hazardous waste?
$1 million
A trucking company owns a large fleet of trucks that transport oil across state lines. According to the financial responsibility requirements set by the Motor Carrier Act of 1980, what is the minimum amount of insurance the company must carry on vehicles that transport oil and certain categories of hazardous waste?
$1 million
Transportation expenses are covered under a personal auto policy for
$20 per day, for a maximum of $600
Tom's Truck Service's vehicle is stolen. The policyholder may obtain coverage for transportation expenses subject to which of the following limits?
$20 per day; $600 maximum
What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement?
$25
o meet New York's compulsory insurance and financial responsibility law requirements, a motor vehicle liability policy must be written with limits of at least
$25,00 person, $50,000 per accident bodily injury and $10,000 property damage per accident.
If an auto policy has split limits of 30/50/25, how much will the policy pay for property damage in a single accident?
$25,000
Under OBEl (Optional Basic Economic Loss) coverage, how much extra coverage can a policyowner in New York purchase?
$25,000
Under New York's Motor Vehicle Accident Indemnification Corporation Act, each automobile liability policy issued must provide uninsured/underinsured motorist coverage for bodily injury other than death of at least
$25,000 per person, $50,000 per accident
At the option of the insured, a personal auto policy must provide supplementary uninsured motorist coverage. The maximum limit that an insurer is required to provide is
$250,000 per person, $500,000 per accident
If an auto policy has split limits of 30/50/25, what is the maximum amount the policy will pay for injuries to one person in a single accident?
$30,000
A policyowner wants to purchase as much additional personal injury protection (APIP) coverage as he can. What is the maximum APIP available?
$50,000
An insured has an auto liability policy with limits of 25/50/15. The insured is involved in a accident caused by her negligence and is held legally liable for bodily injuries of 3 persons in the other auto as follows: "A" $15,000, "B"$30,000, and "C" 35,000. How much will her insurer pay in total for all injuries?
$50,000
A tow truck was stolen from the insured's premises. The insured has loss of use coverage on his commercial auto policy. How much will the insured be able to collect from the overage if unable to use the town truck in its operations for 40 days?
$600
An insured is involved in a motor accident, resulting in a medical expense of $125,000. It's determined that the other driver was at fault. If the insured has underinsured motorist limits of $100,000, and the at fault driver has bodily injury limits of $50,000/$100,000, how much would the insured's policy pay for medical expenses?
$75,000The insured's policy acts as excess over the underinsured driver's. The other driver will pay $50,000 (the per person limit), and the insured's policy will pay the difference ($125,000 - $50,000 = $75,000)
According to the financial responsibility requirements set by the Motor Carrier Act of 1980, what is the minimum amount of insurance the company must carry for the transportation of nonhazardous property?
$750,000
If an auto policy has liability limits of 40/60/20, what would be the equivalent combined single limit?
$80,000 (combined total of coverage for Bodily injury and property damage)
.Of the following, which is NOT defined in the personal auto policy as an uninsured motor vehicle?
( A vehicle in which the driver or owner is unknown; A vehicle which is not covered by a bodily injury liability policy; A vehicle covered by a bodily injury liability policy, but the coverage limit is less than the minimum required by the financial responsibility law)A vehicle owned by a government entity
An uninsured motor vehicle includes all of the following EXCEPT
(A vehicle which flees a hit and run accident; a vehicle not covered by an auto insurance policy; A vehicle that has not liability bond in force)A vehicle owned and operated by a self-insurer.
All of the following statements concerning the New York Automobile Insurance Plan are correct EXCEPT
(All insurance companies writing motor vehicle insurance must participate in the plan; In addition to the minimum limits required to meet the financial responsibility laws, the Plan must offer specified excess limits; Each insurer participating in the plan must maintain an office in the state of New York. The plan is not permitted to reject any application for any reason
All of the following are parts of a personal auto policy EXCEPT?
(Duties after an accident or loss; Liability Coverage; Medical Payments coverage) Garage Coverage
All of the following are true regarding physical damage coverage EXCEPT
(Losses to nonowned autos will be covered the same as the broadest coverage available for any covered auto, except nonowned trailers are limited to $1500; The policy will pay up to $20 per day up to a maximum of $600 for rental transportation; The insurer will pay for direct and accidental loss to a covered auto minus any applicable deductible.The limits of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle.
All of the following may be covered by the miscellaneous type vehicle endorsement EXCEPT
(Motorcycles, Golf carts, Dune buggies)Rented recreational vehicles
New York has compulsory insurance and financial responsibility laws that apply to owners and operators of motor vehicles. Proof of financial responsibility can be satisfied by any of the following EXCEPT
(Posting sufficient cash or securities with the state treasurer; Purchasing automobile liability insurance; Maintaining a surety bond)Filling a hold-harmless agreement with the Motor Vehicle Department
The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT
(The insured's child sustains injuries when the car she is in accidentally rolls down a hill; A friend is injured while driving the insured's vehicle with permission; The insured is injured by a motor vehicle while crossing the street.The insured is injured while exiting a friend's mobile home.
What are the 4 categories of uninsured motor vehicles?
1) No insurance or liability; 2) Insurance is less than what's required by the financial responsibility laws; 3) A hit and run accident where the driver cannot be identified; and 4)The insurer denies coverage or becomes insolvent.
In New York State, what is the minimum age requirement for TNC driver?
19 yrs old
In the split limit coverage in personal auto policies, which limit indicates the maximum amount the policy will pay for bodily injury per person?
1st limit
Coverage for medical payments under a personal Auto Policy applies to expenses following a covered accident that are incurred and services rendered within what time period?
3 years
Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period?
3 yrs
In the event of theft of a covered vehicle, transportation expenses coverage in a personal auto policy will cover the expenses starting how many hours after theft?
48 hours
What is a combined single limit in personal auto policies?
A single limit of coverage for bodily injury and property damage in one accident
What would be considered a newly acquired auto?
A vehicle acquired by the insured during the policy period
What is a covered auto?
A vehicle shown in the policy declarations
In a personal auto policy, the medical payments coverage is similar to
Accident insurance, because it pays medical expenses regardless of fault
In Personal Auto Policy, to What geographical region does the out of state coverage apply?
Any U. S state or territory, as well as Canada
Under a personal auto policy, in which of the following locations would a vehicle primary garaged in California be covered?
Any other state
Which of the following would be considered an insured under a business auto coverage form?
Anyone while using, with permission, a covered auto owned by the named insured
The garage coverage form is used to insure
Auto businesses, such as auto dealers, service stations, and auto repair shops.
Who does the Garage Coverage form insure?
Auto dealers, service stations, auto repair shops.
What types of losses are indicated by the split limits in an auto insurance policy?
Bodily injury per person, bodily injury per accident, and property damage per accident
What are the coverage forms used in commercial auto insurance?
Business Auto Coverage Form, Business Auto Physical Damage Coverage Form, Garage Coverage Form, and Motor Carrier Coverage Form.
A small trucking company stops transporting hay for area farmers and begins to haul hay for its own farm exclusively. In regard to the coverage on its trucks, which of the following is true?
Business auto coverage form may apply
What coverages are available in the physical damage section of the personal auto policy?
Collision and other than collision coverages
A transportation Network Company (TNC) does which of the following?
Connects riders with drivers that will transport them for a fee
Which of the following statements is true concerning underinsured motorist coverage under a personal auto policy?
Coverage applies only to the extent that the underinsured motorist limits exceed the bodily injury limits carried by the operator of the other vehicle.
The designation symbols used in commercial auto policies can be found in which policy section?
Covered Auto
Uninsured motorist bodily injury coverage pays for all of the following EXCEPT
Down Payment on a new vehicle.
Which endorsement under the commercial auto policy provides the insured's employees additional protection while using a vehicle not owned, hired, or borrowed for the insured business?
Employees a insureds
What are the 2 parts of the Garage Liability Coverage?
Garage Operations- Covered Autos, and Garage Operations- Other than covered Autos
A vehicle rented from a commercial rental company is known as what type of auto?
Hired Auto
Which of the following would covered under the Garage Liability Coverage Form?
Insured's business premises
What losses are excluded from coverage in the liability section of the Personal Auto Policy?
Intentional injury or damage, damage to property owned or transported by the insured, use of a vehicle as a public conveyance, or use of a vehicle without permission.
Supplemental uninsured motorist coverage (SUM) is an optional coverage that an insured may purchase to protect against financial loss when
Involved in an accident with an at-fault motorist who is uninsured
How does the Auto Medical Payments Coverage endorsement modify the auto policy?
It adds medical payment coverage to a commercial auto policy
Which of the following personal auto coverage would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss?
Liability coverage
To comply with requirements for insurance for public liability under the Motor Carrier Act of 1980, which endorsement is added to motor carrier coverage form?
MCS-90
A common exclusion found under physical damage to your auto includes
Mechanical breakdown
Which of the following is NOT included in the definition of an "auto" under a commercial auto policy?
Mobile equipment
Why don't commercial auto coverage forms automatically include medical payment coverage?
Often, any person occupying a commercial vehicle would be covered under a workers compensation policy.
When would uninsured motorist coverage apply?
Only when the other party is legally liable but has no insurance.
What Personal Auto coverage would pay for damages to a covered auto caused by a collision with a deer?
Other Than Collision (Comprehensive)
Which of the following person auto coverages would apply for damage caused by a bird hitting the windshield?
Other than collision coverage
What Personal Auto Coverage would pay for the insured's travel expenses and loss of earnings while the insured is involved in the settlement process of a covered loss?
Part A- Liability
If an insured is injured while driving his own car, what coverage in his personal auto policy will pay for the loss?
Part B: Medical Payments
If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT
Physical damage
Under the New York No Fault Law, which of the following claims would NOT be restricted from tort action?
Property damage claims
Which of the following statements is true regarding a mobile equipment endorsement in commercial auto policies?
Provided by the insured's policy on an excess basis
As defined in commercial auto policy forms, mobile equipment includes all of the following types of land vehicles EXCEPT
Self-propelled vehicles used for snow removal
Which of the following symbols is available to an insured with vehicles subject to no-faults coverage?
Symbol 5
Which one of the following symbols used in business auto coverage is correctly described?
Symbol 9- nonowned auto only. (Symbol 1 is used for any auto, Symbol 2 is used for owned autos only, and Symbol 7 is used for specifically described autos only)
A parking garage owner completed major renovations to a parking garage just prior to selling it to another company. Three months later, overhead concrete fell onto cars in the second floor level. Under the garage coverage policy conditions, which of the following is true?
The damage occurred when the concrete fell.
A passenger in a friend's car is injured while getting into the car. Which of the following statements would apply if both the passenger and the driver had a medical payments coverage unders a personal auto policy?
The driver's policy would be primary
Which of the following statements is true regarding a mobile equipment endorsement in commercial auto policies?
The endorsement is available for additional premium
Which of the following circumstances would be EXCLUDED under medical payments coverage of a person auto policy?
The insured is injured while driving his motorcycle on his resident premises
Underinsured Motorist (UIM) coverage will pay the difference between which 2 limits?
The insured's UIM limit and the at-fault driver's insurance bodily injury limits
What is the limit of liability in Part D: Coverage for Damage to Your Auto?
The lesser of the actual cash value of the vehicle or the amount needed to repair or replace the vehicle.
What does the term "you" refer to in a personal auto policy?
The named insured shown in the declarations, and the insured's spouse (if resident of the same household)
In personal auto policies, the terms "you" refers to
The names insured
What is coverage is provided in the liability section of the business auto coverage form?
The policy will pay for injury or property damage to third parties
How much will a physical damage policy pay for transportation expenses due to a theft of a covered auto?
The policy will pay up to $20 per day, up to a maximum of $600, for transportation expenses incurred by the insured.
The individual named insured endorsement under a commercial auto policy provides coverage for which of the following?
The sole proprietor of the business and his or her family members
Who is considered insured under Part A: Liability of a personal auto policy?
The vehicle owner or his/her family member, or any person using the covered auto with permission
What do the numerical symbols represent in auto policies?
They define the type of vehicle insured for specific coverages
What is the purpose of the miscellaneous type vehicle endorsement in personal auto policies?
To expand the definition of a covered auto to include various motorized vehicles
A trucking business swaps trailers with other carriers. What coverage is necessary to cover loss to the other's trailer while in the borrower's possession?
Trailer interchange coverage
Commercial auto coverage form that is designed for insured engaged in the business of transporting goods for others is a
Truckers coverage form
A motorist whose insurance liability coverage is too low to pay for all damage after an accident is considered.
Underinsured
What type of auto coverage will apply in a hit and run accident where the driver cannot be identified?
Uninsured Motorist
What is the business auto coverage territory for?
United States and its territories, Canada, or worldwide for private passenger hired autos
Under the Automobile Assigned Risk Plan, how much coverage must be provided to the insured for liability arising out of the death of two persons caused by a single auto accident?
Up to $100,000
Under the business auto coverage form, mobile equipment is covered for liability insurance
When being carried or towed by a covered auto
The limits for uninsured motorist bodily injury coverage are established
When the auto policy is purchased
When does the Underinsured Motorist coverage apply?
When the motorist is at fault in an accident, but the limits of his/her auto insurance are not sufficient to cover the bodily injury to another motorist
When does Uninsured Motorist coverage apply?
When the other party is legally liable but has no insurance
When would uninsured motorist coverage apply?
When the other party is legally liable but has no insurance
The bankruptcy provision found in the personal auto policy states that bankruptcy of the insured.
Will not relieve the insurer of its policy obligations
Bailee
a person who is entrusted with possession of another person's property but has no ownership of it (ex: a service station having a damaged vehicle for repairs)
appraisal
a professional assessment to determine extent of damage
financial responsibility
proof that one can pay for damages caused, often fulfilled by purchasing insurance
