Licensing CH 7

J's Personal Auto policy includes Other Than Collision coverage, but no collision coverage, with a $200 deductible. J's parked car rolls downhill and hits a tree, incurring $500 in damage to the car, $150 of which is from glass breakage. How much will J's insurer pay for the loss?

$0 Without collision coverage, the accident is not covered under the policy.

Transportation Expenses

$20/day $600 max; theft is after 48 hours, anything else is 24 hours after

Part A Supplementary Payments

$250 for bail bonds, premiums on bonds, interest accrued, $200/day for trial, reasonable expenses

If an insured has a Personal Auto policy with collision coverage, transportation expenses incurred after a collision are covered, up to a total of:

$600

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?

$70,000

An insured has auto insurance with both Company A and Company B. How much will Company B have to pay for a covered liability loss of $3,000 if Company A's limit of liability is $50,000 and Company B's is $100,000?

2,000; If other auto liability insurance applies, each policy will pay its proportionate share of the loss. Company B's limit is 2/3 of the total coverage provided by both policies ($100,000 of the total $150,000 of insurance). 2/3 of the $3,000 loss = $2,000.

Personal Auto Eligibility

4 wheeled private passenger, vans and pickups <10,000lbs, leased for 6 months, use for transporting farming goods, not carrying passengers for a fee

The named insured's spouse will not be considered an insured on the named insured's Personal Auto policy if:

: 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 an insured has comprehensive physical damage coverage provided by their Personal Auto policy, the insurer would deny which of the following physical damage claims?

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

Under the PAP, which of the following is not considered occupying a vehicle?

? Standing by the car exchanging insurance information

Under a Personal Auto policy, which of the following will be paid by supplementary payments provided by Part A?

A $250 bail bond

Liability coverage under a Personal Auto policy will cover which of the following vehicles?

A non-owned golf cart

Which private passenger auto is not eligible for coverage under a Personal Auto policy?

A van used to deliver shipments from a warehouse.

Liability coverage for which of the following vehicles is only provided by endorsement under a Personal Auto policy?

All-terrain vehicles

Part F- General Provisions

Bankruptcy, Changes in vehicles, operators, place, coverage, limits, and deductibles; no additional premium charge and changed automatically

After unintentionally running a red light, L causes an accident with T. T's sedan is badly damaged, and T's arm is broken. A few months after the accident, T brings a suit against L, asking for damages for medical costs incurred for the broken arm and other injuries sustained in the accident. Under Part A of L's Personal Auto policy, supplementary payments in connection with the insurer's defense will:

Be paid in addition to the policy's liability limits

Under Part D - Coverage for Damage to Your Auto of the Personal Auto policy, vehicle upset would be covered under:

Collision coverage

If an uninsured motorist causes an accident with the insured, Part C pays which damages to the insured?

Compensatory damages for bodily injury

Part D

Damage to Your Auto

Under Part A of a Personal Auto policy, which of the following losses would be covered?

Damage to a neighbor's parked car

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?

Damage to the insured auto's bumper when the auto crashed into a tree

Part E

Duties after Loss

Part A Limit of Liability

Either split limits or combined single limit, per person for bodily, per accident for bodily, and per accident for property; maximum per accident

Part B of a Personal Auto policy would pay for which of the following expenses?

Funeral service expenses incurred by an insured

Part F

General Provisions

When an insurer pays for a physical damage loss covered by Part D of a Personal Auto policy, all of the following are true, except:

If the insurer returns a stolen car to the insured, it does not have to pay for damage that resulted from the theft

Under physical damage coverage provided by a Personal Auto policy, all of the following statements are incorrect, except:

In the event of total loss, adjustment will be made for the physical condition of the vehicle

If J has no endorsements added to their Personal Auto policy, under which of the following scenarios will J's injuries be covered under Part B - Medical Payments Coverage?

J was driving their own car from the post office after retrieving their employer's mail.

Under Part F of the Personal Auto policy, the Legal Action Against Us provision states that:

Legal action may not be brought against the insurer until the insured has complied with all the terms of the policy

Part A

Liability Coverage

Declarations Page

Limit of Liability regardless of number of insured, claims made, vehicles or premiums shown, vehicles involved in the accident

Part B

Medical Payments

If a bird hits a windshield and breaks it, which Personal Auto policy coverage would pay the lo

Other Than Collision coverage

While driving in another state with higher liability coverage requirements, which of the following sections of a Personal Auto policy automatically provides the required coverage?

Out of State Coverage

An insured with comprehensive coverage under Part D of their Personal Auto policy would be protected in the event of all of the following physical damage losses, except:

Overturn of the vehicle

In the event a Personal Auto policy is to be terminated, which of the following provisions applies?

Proof of mailing a notice is considered sufficient proof that the insurer provided a termination notice

An insured has a standard Personal Auto policy. When resulting from an accident with an at-fault uninsured motorist, damages owed to the insured for all of the following would be paid by the insured's uninsured motorist coverage, except:

Property damage

A Personal Auto policy provides liability coverage under Part A for:

Property damage caused by an insured to a private garage rented to them

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:

Provided on an excess basis

Occupying

Some who is in, getting into, upon or getting upon, getting out getting off a vehicle

Part C Limits of Liability

Split Limits shown on Declarations per person/accident bodily injury

After a Personal Auto policy has been in effect for 60 days, the insurer may cancel the policy for any of the following reasons, except:

Submission of 4 or more claims during a single policy period

The policy territory of a Personal Auto policy is limited to which of the following?

The United States, its territories and possessions, Canada, and Puerto Rico

Under a Personal Auto policy, which statement about deductibles applying to coverage under Part D - Coverage for Damage to Your Auto is correct?

The deductible applying to collision coverage is listed separately from the deductible applying to comprehensive coverage

Supplementary payments provided by a Personal Auto policy's liability coverage include payments for all of the following, except

The insured's loss of income due to bodily injury after an accident, up to $200 per day.

Part D Limit of Liability

The lesser of ACV and he actual amount necessary to repair or replace the damaged property

After an uninsured motorist causes an accident involving an insured's auto, all of the following people could collect payments under Coverage C of the insured's Personal Auto policy, except:

The operator of the uninsured motor vehicle

An insurer has the right to do all of the following regarding a Personal Auto policy, except:

Transfer its subrogation rights to the insured

Part C

Uninsured Motorists

Your Covered Auto

any vehicle shown in Declarations, trailer owned, newly acquired auto, temporary substitute for covered auto if in repair

Newly Acquired Auto Coverage

broadest coverage for A,B,C, if replacing its automatic, if adding must do within 14 days, as well as adding part D coverage, 14 days if already added 4 days if not on policy

When an insured sustains bodily injury caused by an uninsured motorist, uninsured motorists coverage on a Personal Auto policy will pay:

compensatory damages only

Part C UM Insuring Agreement

defined as no bodily liability policy, hit and run, coverage becomes insolvent, coverage less than the minimum amount does not include: self insurer, bulldozers or trains, ATVS and snowmobiles, used as residence; pay compensatory damages for bodily injury, governmental

Part A Insuring Agreement

ends when the damages owed to the injured party exhaust Part A limit; must pay bodily or property damage, pay defense costs

Limited Mexico Coverage Endorsement

excess basis, accidents in Mexico within 25 miles or less than 10 days

Underinsured Motorist UIM Coverage

for bodily injury caused by someone with liability insurance but coverage limits are inadequate to respond to claims, pay up to UIM limit

Extended Non-owned Coverage

for vehicles furnished or available for regular use such as company car, provides Medical Payments, excess over applicable insurance

Collision Coverage

impact with another vehicle or object- the only peril insured against collision

Rental Vehicle Endorsement

in event of actual damage to or loss of a rental vehicle no more than 30 days

Part A Exclusions

intentionally causes damage, damage by being transported, rented except for residence or private garage, insured's employee, public conveyance, taxi, or ride sharing, does not apply to car pooling, business, commercial vehicles, nuclear energy, vehicles with less than 4 wheels except non owned golf carts or trailers, uncovered vehicles, company car, racing

Part B Exclusions

less than 4 wheels, public conveyance, used as a residence, employee, company car, commercial, racing

Part C Other Insurance

may not exceed the highest limits

Miscellaneous Type Vehicle Endorsement

motor home, ATV, bune buggy, golf cart, motocycles. doesn't include snow mobile;

Newly Acquired Auto

name insured or spouse must purchase during policy period and be a private passenger auto or pickup/van <10,000lbs

You and Your Definition

name insured, resident spouse, resident family member in household, excludes spouse if they change residency after 90 days

Part A Insures

named insured or family member, person who uses covered auto with permission, legally responsible for anyone covered, rented auto or trailer

Personal Injury Protection PIP

no fault insurance; coverage for healthcare, without needing to establish negligence

Part E- Duties After Loss

notify insurer PROMPTLY, cooperate with investigation, send copies of legal papers, submit to a physical exam, obtain medical reports, submit proof of loss, protect from further damage, notify police if car is stolen, and allow inspection before its repair or disposal

Comprehensive Coverage

open perils basis includes: missiles, fire, theft, explosion, earthquake, windstorm, flood, hail, VMM, riot, animal, glass doesn't cover: rollover

Other Insurance Coverage

pay on a pro rata basis

Towing/ Labor Cost Coverage Endorsement

per-occurrence basis, performed at place of disablement

Part D- Coverage for Damage Auto

physical damage; also for non-owned vehicles operated by insured; subject to a deductible

Part D Exclusions

public conveyance, radioactive contamination, government confiscation, racing, freezing, electrical failure, damage to tires, loss to not permanently installed electrical equipment, radar, trailer, custom furnishings; does include car pool

Deductibles

separate ones listed on Declarations , pay highest one

Part B Medical Coverage

sustained by an insured, caused by an accident, within 3 years, not require to be legally responsible; name insured or family member, pedestrian insured, passenger

Joint Ownership Endorsement

two or more individuals who jointly own an eligible vehicle, may be nonresident relatives

Part C Exclusions

uninsured, covered under a different policy, public conveyance, unauthorized use, workers comp, UM not provided for punitive or exemplary damages