Chapter 22 Quiz

All of the following losses are excluded under Part D (coverage for damage to your auto) of an unendorsed PAP EXCEPT: a) damage by vandals to a portable car telephone b) theft of a compact disc player which was permanently installed in the auto c) damage caused to a car's engine because of the names insured forgot to use antifreeze d) damage by fire to a radar detector which overheated

Chapter 22 Question 11

Ken fell asleep while driving late at night, crossed the center line and hit a car approaching from the other direction. The following losses occurred: -The driver of the other car suffered $30,000 in bodily injuries -Ken's car sustained $5,000 in damages -Ken incurred $5,000 in medical expenses -The car that Ken hit was a total loss a) BI liability b) collision coverage c) Medical payments d) PD liability

a) BI liability

Duties of an insured after a covered collision loss include which of the following? I. take reasonable steps to protect the vehicle from further damage II. Admit fault if the insured believes he or she caused the collision a) I only b) II only c) both I and II d) neither I nor II

a) I only

All of the following are covered for liability under a PAP EXCEPT: a) a non-owned van which is driven by the insured on a regular basis b) a trailer owned by named insured c) a borrowed auto used by the insured as a substitute auto d) a newly acquired auto which replaces a vehicle previously described in the policy

a) a non-owned van which is driven by the insured on a regular basis

Which of the following situations would be covered under the liability section of the PAP? I. An attendant at a parking lot is sued by a pedestrian who is injured when the attendant has an accident while parking the covered auto II. The daughter of the named insured is sued after she has an accident when a new friend she just met at a campus hangout lets her drive his car a) I only b) II only c) both I and II d) neither I nor II

b) II only

Which of the following statements about uninsured motorists coverage is true? a) The coverage usually applies only to PD b) The coverage applies only if the uninsured motorist is legally liable c) Unless higher amounts are purchased, the max benefit is normally limited to $1,000 d) A covered person's only recourse is to sue the insurer if there is a disagreement over the amount of damages

b) The coverage applies only if the uninsured motorist is legally liable

In addition to providing coverage in the United States, its territories and possessions, and Puerto Rico, where foes the PAP provide coverage? a) in Mexico b) in Canada c) in both Mexico and Canada d) anywhere in the world

b) in Canada

Which of the following statements about the medical payments coverage of the PAP is true? a) The amount of the benefit typically is $100,000 b) Covered expenses must be incurred within 6 months of the accident c) Covered expenses include the cost of funeral services d) The benefit limit applies on a per-accident basis rather than on a per-person basis

c) Covered expenses include the cost of funeral services

All of the following are considered uninsured vehicles under uninsured motorists coverage of the PAP EXCEPT: a) a vehicle owned by an individual that is insured, but for less than the amount required by the state's financial responsibility law b) a hit-and-run vehicle, the ownership of which cannot be determined c) a vehicle upon which enough liability insurance has been purchased to satisfy the state's financial responsibility law d) a vehicle insured by a company which becomes insolvent before a claim can be paid

c) a vehicle upon which enough liability insurance has been purchased to satisfy the state's financial responsibility law

Which of the following persons is (are) covered for liability insurance under the PAP? I. A family member who drives a covered auto II. A family member who drives a friend's auto a) I only b) II only c) both I and II d) neither I nor II

c) both I and II

All of the following are exclusions under the medical payments coverage of the PAP EXCEPT: a) injuries incurred while riding a motorcycle b) injuries incurred while an auto is being used without the presumption that permission would have been granted to use the auto c) injuries incurred in an auto while it is used in a share-the-expense car pool d) injured incurred during the course of employment if workers compensation benefits are available

c) injuries incurred in an auto while it is used in a share-the-expense car pool

Which of the following is considered to be a collision loss under Part D (coverage for damage to your auto) of the PAP? a) the covered auto hits a deer b) the covered auto is wrecked by a thief after it's stolen c) the covered auto is damaged when it slid off an icy road and hit a fence d) the covered auto is damaged when struck by a rock thrown by a child

c) the covered auto is damaged when it slid off an icy road and hit a fence

All of the following are insured's under liability coverage of a PAP EXCEPT: a) a friend to whom the named insured loans a covered auto b) the employer of named insured for actions resulting from the named insured's use of a covered auto c) the former spouse of the named insured who moved from the home 2 yrs ago when a divorce was finalized d) a relative of the named insured if a member of the same household

c) the former spouse of the named insured who moved from the home 2 yrs ago when a divorce was finalized

All of the following statements about termination provisions of the PAP are true EXCEPT: a) the insured can cancel the policy for any reason b) the insurer can cancel a newly written policy for any reason if it has been in force for less than 60 days c) the insurer can cancel a newly written policy after it has been in force for 60 days only if the insured has three or more traffic violations d) the insurer can refuse to

c) the insurer can cancel a newly written policy after it has been in force for 60 days only if the insured has three or more traffic violations

All of the following statements about Part D (coverage for damage to your auto) of the PAP are true EXCEPT: a) Coverage may be purchased with or without collision insurance b) Losses are paid regardless of fault c) Coverage applies to a nonowned auto occasionally driven by an insured d) A newly acquired auto is covered only if the named insured asks the company to insure it within 48 hours of acquisition

d) A newly acquired auto is covered only if the named insured asks the company to insure it within 48 hours of acquisition

Dennis was involved in an accident. He believes the damage to his auto is $6,000. His insurer believes the damage is only $3,500. Which PAP provision is designed to handle disputes between the insurer and the insured over the amount of the loss? a) other insurance provision b) agreed amount endorsement c) coinsurance provision d) appraisal provision

d) appraisal provision