ch 6 PAP

Part D of the Personal Auto Policy provides which of the following coverages? A Coverage for Damage to Your Auto B Underinsured Motorists Coverage C Medical Payments Coverage D Liability Coverage

A Coverage for Damage to Your Auto

If Policyholder J has no added endorsements, under which of the following scenarios will Policyholder J's injuries be covered by her Personal Auto Policy under Medical Payments Coverage? A J was driving her own car from the Post Office after retrieving her employer's mail B J broke her leg during an accident that occurred during a demolition derby C J was using her car as a taxi when the vehicle overturned D J slid into a tree while driving her company car on a personal errand

B J broke her leg during an accident that occurred during a demolition derby Business use of private passenger cars is NOT excluded under Medical Payments Coverage.

Whose policy will be primary for bodily injury coverage for the injured party if a neighbor borrows an insured's car and injures a pedestrian? A There is no coverage for this loss B The insured's auto policy C The neighbor's homeowners liability policy D The neighbor's personal auto policy

B The insured's auto policy Auto coverage follows the vehicle. The insured owner's coverage is primary.

Which statement is false regarding the Personal Auto Policy? A Collision coverage will cover damage to the insured vehicle regardless of liability B Theft is covered under property damage liability C The PAP provides medical payments for up to 3 years D Uninsured

B Theft is covered under property damage liability Theft is covered under physical damage (Part D), not property damage liability (Part A).

Which of the following coverages under the Personal Auto Policy protects the insured against drivers who do not have adequate auto liability insurance limits? A Uninsured Motorist Coverage B Underinsured Motorist Coverage C Medical Payments Coverage D Liability Coverage

B Underinsured Motorist Coverage Uninsured Motorists Coverage applies only when the at-fault driver is uninsured. When the at-fault driver of the other vehicle has insurance, but the limits are insufficient to cover the insured's damages, then the insured may make a claim under Underinsured Motorists Coverage.

The Personal Auto Policy Collision Coverage applies to which of the following? A Your car and the car you run into B Your car, regardless of liability C The car you run into, regardless of liability D Your car only if you are legally liable

B Your car, regardless of liability Collision only applies to a vehicle of the insured and is applied regardless of fault.

Which of these statements is not true about Uninsured Motorist coverage? A A driver is considered uninsured when his/her insurer denies a claim B Bodily injury must be caused by another person who is legally responsible C Coverage is automatically provided for the damage to the insured vehicleterm-15 D A hit-and-run driver is considered uninsured

C Coverage is automatically provided for the damage to the insured vehicle UIM insurance provides coverage for bodily injury only. Property damage would be covered by Part D of the owner's policy, or by Uninsured Motorist Property Damage, which is optionally available.

Choose the false statement about a newly acquired additional vehicle under the PAP: A It must be reported to the insurer within a specified period B It may be used on a farm C It may be used to transport goods for hire if receipts are less than $10,000 D Coverage will be as broad as the broadest coverage on any insured vehicle in the household

C It may be used to transport goods for hire if receipts are less than $10,000 Vehicles used to carry goods for hire cannot be insured under a Personal Auto Policy.

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

C Other Than Collision coverage

Transportation Expenses Coverage under Part D of the Personal Auto Policy begins how long after the covered auto has been stolen? A Immediately B 24 hours C 72 hours D 48 hours

D 48 hours

Which vehicle is covered under Part B - Medical Payments of the Personal Auto Policy? A A 3-wheel vehicle B A family member's company car C A vehicle used as a residence D A vehicle used for car pools

D A vehicle used for car pools A share-the-expense vehicle is not considered a 'livery' or 'public conveyance' vehicle, and would be covered.

The definition of bodily injury in the Personal Auto Policy includes which of the following? A Physical damage to tangible property B False arrest C Defamation of character D Bodily harm, sickness or disease

D Bodily harm, sickness or disease

The Named Non-owner endorsement: A Does not apply to a rented vehicle B Does not supply coverage to meet a state's financial responsibility law requirements C Provides only liability coverage D Covers only the person named on the endorsement

D Covers only the person named on the endorsement The Named Non-Owned endorsement provides liability, medical payments, and UM coverage for a person who does not own, but often borrows or rents a car.

Which of the following persons cannot collect a claim payment under Uninsured Motorist coverage? A The owner of a car that was struck by a vehicle whose auto carrier was insolvent at the time of the accident B A pedestrian struck by a hit-and-run vehicle C The owner of a car struck by an uninsured motorist D The owner of a parked car struck by a falling object

D The owner of a parked car struck by a falling object insurance provides coverage for bodily injury only. Property damage would be covered by Part D of the owner's policy, or by Uninsured Motorist Property Damage, which is optionally available.

Policyholder G wants her PAP to insure her sedan, primarily used for sales calls, her husband's SUV for car-pooling, the station wagon that their daughter uses to drive to school, and the van their son uses part-time to deliver dry-cleaning. Which of the following cars will G's agent tell her is not eligible? A The station wagon B The SUV C The sedan D The van

D The van While car-pooling and sales calls are acceptable business uses under the personal auto policy, business deliveries are not.

Which vehicle is covered under Part B - Medical Payments of the Personal Auto Policy? A A 3-wheel vehicle B A family member's company car C A vehicle used as a residence D A vehicle used for car pools

D. A vehicle used for car pools A share-the-expense vehicle is not considered a 'livery' or 'public conveyance' vehicle, and would be covered.

All of the following are true of automobile physical damage Coverage D, except: A It covers damage to the insured auto regardless of liability B It covers damage to the insured auto and to another auto with which it collided C Damage to the insured auto that is caused by colliding with a deer would be covered under Other Than Collision coverage D Collision coverage usually is written with a deductible

It covers damage to the insured auto and to another auto with which it collided Automobile physical damage does not cover any damage to a vehicle hit by the insured. This liability would be covered by Part A.

Whose policy will be primary for bodily injury coverage for the injured party if a neighbor borrows an insured's car and injures a pedestrian? A The neighbor's homeowners liability policy B There is no coverage for this loss C The insured's auto policy D The neighbor's personal auto policy

The insured's auto policy Auto coverage follows the vehicle. The insured owner's coverage is primary.

Part A - Liability Coverage Part B - Medical Payments Coverage Part C - Uninsured Motorists Coverage Part D - Coverage for Damage to Your Auto Part E - Duties After an Accident or Loss

test tip

Supplementary payments under Part A of the Personal Auto Policy will pay which of the following? A A judgment against the insured in excess of liability limits B Loss of earnings when the insured is disabled C Doctor bills when the insured is injured in an auto accident D $250 for bail bonds

$250 for bail bonds Supplementary payments include bail bonds payments up to $250.

Which of the following is a duty required of the insured in the event of a loss under the PAP? A Allow an inspection and appraisal of the damage before an auto is repaired B Give notice of the accident to the insurer within 5 days C Immediately initiate repairs to the vehicle to protect it from further damage D If the vehicle was stolen, contact the insurer for permission to report the theft to the police

A Allow an inspection and appraisal of the damage before an auto is repaired Under Part E - Duties After a Coverage D Loss, the insured must also allow and inspection an appraisal before the damage is repaired and promptly notify the police if the car was stolen.

M and C both have Personal Auto policies with liability limits of 20/30/10. If M borrows C's car and injures a pedestrian, causing injuries that will cost $5,000 to treat, which policy will provide coverage for the injured party? A C's policy B M's policy C Both policies will share the loss pro-rata D Neither policy, since C's car was not on M's policy

A C's policy The owner's coverage is primary (insurance follows the car not the driver). Coverage for a non-owned vehicle is excess.

Which statement is false regarding uninsured motorist coverage under a Personal Auto Policy? A Coverage includes injuries suffered by someone using a covered vehicle without permission B Coverage does not apply to a vehicle used primarily for use off public roads C Covered persons include the named insured, family members and any other person occupying the covered auto D Coverage does not apply to any vehicle being used to carry property or persons for a fee Sorry! The correct answer was A. Coverage does not apply when a person is using the vehicle without permission.

A Coverage includes injuries suffered by someone using a covered vehicle without permission Coverage does not apply when a person is using the vehicle without permission.

Choose the physical damage claim that would be covered under the Personal Auto Policy. A Malicious mischief to the tires B Loss due to radioactive contamination C Mechanical breakdown D Loss due to war

A Malicious mischief to the tires Malicious mischief is covered under Other Than Collision. The other items are excluded.

Choose the physical damage claim that would be covered under the Personal Auto Policy. A Malicious mischief to the tires B Loss due to war C Mechanical breakdown D Loss due to radioactive contamination

A Malicious mischief to the tires Malicious mischief is covered under Other Than Collision. The other items are excluded.

Choose the use of an automobile that is not eligible for the Personal Auto Policy. A Pizza delivery B Car pooling C Driving over 25,000 miles annually D Transporting furniture for a neighbor who is moving to a new home

A Pizza delivery Delivery or commercial use of an eligible vehicle is ineligible under the Personal Auto Policy and requires a business auto policy.

The limit of liability of Coverage D, Damage to Your Auto, under the Personal Auto Policy states that: A The limit of liability is the lesser of the actual cash value (ACV) of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality B The limit of liability is reduced by an amount equal to losses paid during the policy term C The limit of liability is equal to the limit of liability of Coverage A D The limit of liability is reduced by an amount equal to losses paid on the covered auto

A The limit of liability is the lesser of the actual cash value (ACV) of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality Generally, the maximum limit of liability is equal to the actual cash value of the vehicle or vehicles insured. If the damage can be repaired, then the limit of liability is equal to the amount necessary to repair the vehicle or vehicles.

Under the PAP, a temporary substitute would be covered if used: A While an insured auto needs servicing B To pick up a new refrigerator that won't fit in the family car C Because the insured's auto is an automatic, and his/her daughter wants to learn to drive manual D To test drive new models

A While an insured auto needs servicing A temporary substitute is a covered auto as long as an owned car is out of normal use due to breakdown, repair, servicing, loss, or destruction.

Which of the following is false under the Personal Auto Policy? A Coverage is provided for theft under property damage liability B Medical payments may be provided for up to 3 years following an accident C Coverage for damage to an insured vehicle is provided without regard to liability D No-fault coverage is provided in states that require it

A. Coverage is provided for theft under property damage liability Theft is covered under Physical Damage (Part D), not property damage liability (Part A).

Whose policy will be primary for bodily injury coverage for the injured party if a neighbor borrows an insured's car and injures a pedestrian? A The insured's auto policy B There is no coverage for this loss C The neighbor's personal auto policy D The neighbor's homeowners liability policy

A. The insured's auto policy Auto coverage follows the vehicle. The insured owner's coverage is primary.

J has a personal auto policy with Liability limits of 50/100/25, UM/UIM limits of 50/100, a Medical Payment limit of $5,000 and Comprehensive and Collision deductibles of $500. J's vehicle slides on ice and hits a guardrail causing $9,500 in damage to the vehicle and $11,000 damage to the guardrail. J also sustains $1,000 in injuries. How much will the policy pay for all damages? A $11,000 B $21,000 C $9,500 D $21,500

B $21,000 The policy will pay $11,000 in property damage under liability, $1,000 for injuries under medical payments, and $9,000 for physical damage after the deductible is met, totaling $21,000.

Which of the following would not be covered under a Personal Auto Policy? A A pickup truck with a gross vehicle weight of 7,600 pounds B A motorcycle C An eight passenger van with a gross vehicle weight of 7,600 pounds D Any trailer that the insured owns

B A motorcycle Generally, vehicles that have fewer than 4 wheels are excluded from coverage.

Under the Personal Auto Policy, a family member is defined as which of the following? A A member of the named insured's immediate family, regardless of place of residence B A person who is a resident of a household and related by blood, marriage or adoption C A person using the insured automobile with the named insured's permission D A person related to the named insured who has frequent use of the insured automobile

B A person who is a resident of a household and related by blood, marriage or adoption

Under the Personal Auto Policy, medical payments do not apply to passengers occupying which of the following? A A van being used for shared car pools B A van used in the insured's business in the course of employment C A newly acquired vehicle D A non-owned vehicle

B A van used in the insured's business in the course of employment Workers' Compensation coverage is an exclusive remedy for injuries incurred in the course of employment. Therefore, these injuries are excluded under Medical Payments coverage.

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

B Collision

The Named Non-owner endorsement: A Does not supply coverage to meet a state's financial responsibility law requirements B Covers only the person named on the endorsement C Provides only liability coverage D Does not apply to a rented vehicle

B Covers only the person named on the endorsement The Named Non-Owned endorsement provides liability, medical payments, and UM coverage for a person who does not own, but often borrows or rents a car.

Which of the following is not eligible for coverage under the Personal Auto Policy? A A vehicle being used in a share-the-expense carpool B A pickup C A vehicle with fewer than four wheels D A van weighing 5,200 pounds

C A vehicle with fewer than four wheels

Company A's per person Limit of Liability is $100,000 and Company B's is $200,000 for the same insured. How much will Company B have to pay for a covered $6,000 loss caused by the insured? A Zero B $2,000 C $4,000 D $6,000

C $4,000 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 by both policies. 2/3 of the total loss of $6,000 = $4,000.

Transportation expenses resulting from a collision or OTC loss will be paid up to what amount under Part D of the PAP? A $200 B $500 C $600 D $1,000

C $600 A maximum of $20 per day, up to $600, will be paid for transportation expenses.

Under medical payments coverage, how long after an accident does the insured have coverage for resulting medical expenses? A 5 years B 4 years C 3 years D 1 year

C 3 years Expenses must be incurred within 3 years of the accident.

Under the Personal Auto Policy, medical payments do not apply to passengers occupying which of the following? A A non-owned vehicle B A newly acquired vehicle C A van used in the insured's business in the course of employment D A van being used for shared car pools

C A van used in the insured's business in the course of employment Workers' Compensation coverage is an exclusive remedy for injuries incurred in the course of employment. Therefore, these injuries are excluded under Medical Payments coverage.

All of the following are excluded under Part A of the Personal Auto Policy, except: A Intentional damage caused by the insured B Damage caused by a vehicle designed mainly for off road use C A vehicle driven by an unlicensed driver D Use of a non-owned vehicle without permission

C A vehicle driven by an unlicensed driver If a covered driver is using the covered auto with permission, the driver is still covered even if not properly licensed.

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

C Collision As defined in the policy, Collision means the upset of the covered auto or a non-owned auto or their impact with another vehicle or object.

Physical damage to the insured auto that is not covered under collision, and is not otherwise excluded, would be covered under: A Named perils B Transportation Expenses C Comprehensive D Property Damage Liability

C Comprehensive The Other than Collision coverage, also known as Comprehensive, provides coverage for damages not caused by collision and not excluded in the exclusions.

Which of the following is not a Supplementary Payment under Part A of the Personal Auto Policy? A Up to $250 for the cost of bail bonds B Payment for lost earnings up to $200/day C Medical payments for an occupant of an insured vehicle D Reasonable expenses incurred at the insurer's request

C Medical payments for an occupant of an insured vehicle Medical payments are paid out of Part B of the policy and are not considered Supplementary Payments.

Part E of the Personal Auto Policy states that after a loss the insured must: A Give notice of the accident to the insurer within 30 days B Immediately initiate repairs to the vehicle to protect it from further damage C Protect the auto from further damage D If the vehicle was stolen, contact the insurer for permission to report the theft to the police

C Protect the auto from further damage In the event of a covered loss, Persons submitting claims to the insurance company are required to: Notify the insurer promptly about how, when, and where the accident or loss occurred; Cooperate with the investigation and settlement of any claim; Promptly send to the insurer any copies of notices or legal papers received; Submit to a physical exam as reasonably required by the insurer; Authorize the insurer to obtain copies of medical reports and other pertinent records; Submit a proof of loss when required by the insurer.

Which statement is not correct about the Right to Recover Payment under the PAP? A The person who is paid a claim must give the insurance company the right to recover damages B The insured must reimburse the insurance company if the insured is paid by the other party C The Right to Recover is an insured's right D The right to recover involves going after the negligent party to pay for the insured's loss

C The Right to Recover is an insured's right The Right to Recover is a right given by the insured to the insurer after the insurer paid a claim.

Choose the false statement about Medical Payments coverage under the Personal Auto Policy. A Persons other than the named insured and family members must be occupying the insured auto in order to be covered B The named insured and family members are covered if injured while occupying any auto C The policy limit is applied on a per occurrence basis, not per person D 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 Auto medical payments coverage applies a per person limit.

Which of the following is covered under Part D of the Personal Auto Policy? A Theft loss to a portable CD player B Damage to a van used as a livery C Water or flood damage to a convertible when the top is left down D Damage to a radar detector

C Water or flood damage to a convertible when the top is left down Water or flood damage is covered under Other Than Collision coverage. Damage to audio electronics and radar detection equipment is excluded.