Chapter 5: Personal Auto
An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for one and $8,000 for the other. How much will be paid?
$14,000, maximum $5,000 per person, per accident
Louisiana minimum automobile liability insurance requirement is 15/30/25 which means?
$15,000 for bodily injury, 1 person in 1 accident; $30,000 bodily injury of 2 or more persons in 1 accident; and $25,000 for damage to destruction or property of others in 1 accident
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
Which of the following is representative of the minimum liability requirement for auto policies issued in this state?
15/30/25
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 maximum time period?
3 years
A notice of cancellation, for a reason other than nonpayment of premium, is only effective if mailed or delivered to the named insured at least
30 days prior to the date of cancellation
Who is required to be a member of the Louisiana Automobile Insurance Plan?
All insurers writing motor vehicle insurance in the state
Which of the following kinds of vehicles are exempt from complying with the Louisiana Motor Vehicle Safety Responsibility Law?
All of the above, leased mobile rig haulers, vehicles used as agricultural or forest, and vehicles used primarily for exhibits, parades or shows
With regards to Uninsured/Underinsured Motorist Coverage, the named insured may
Any of the above, reject coverage, select lower limit or select economic-only coverage
Which of the following would NOT be covered under the liability section of a personal auto policy?
Bodily injury is caused by the insured's negligence while driving a three-wheel all-terrain vehicle
An insured was involved in an automobile accident for which the insured was at fault. Which of the following coverages would pay for damage to the insured's automobile?
Collision
In Louisiana, automobile liability insurance is considered to be
Compulsory coverage
In which of the following sections of a commercial auto policy will you find specific information about the policy period?
Conditions
The designation symbols usedd in commercial auto policies can be found in which policy section?
Covered Auto
An automobile liability insurance policy, in addition to providing coverage to the insured while within the state of Louisiana, must provide coverage for the insured while operating the vehicle in all of the following places, EXCEPT
Cuba, in any state of the United States and Canada
Unless the insured has rejected Uninsured Motorist Coverage, the insurer must provide coverage for damage to the insured auto caused by an uninsured auto in the amount of
The actual cash value of the insured auto or $10,000, whichever is less
An employee drives a company auto, but does not own a vehicle herself. What endorsement could be added to the insurance policy covering the company auto that would provide coverage to the employee when she drives someone else's car for her personal use?
Drive other car coverage
An owner of a parking lot wants liability coverages for damage to vehicles while in her custody. She needs
Garagekeepers coverage
Extended nonowned coverage endorsement in a PAP broadens which of the following coverages?
Liability and medical payments
Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in settlement process of a covered loss?
Liablity coverage
To perform work on a customer's car, a mechanic in an auto shop had to put the vehicle on a service hoist. The hoist collapsed, damagin the vehicle and injuring the mechanic. In regard to the garage coverage form, which of the following statments is true?
No coverage is applicable
Even though an insured maintains a valid driver's license and has paid the premium when due, an insurer may modify the deductible of an auto policy after
Payment of a third physical damage claim in 5 years
All of the following are parts of a personal auto policy EXCEPT
Physical damage coverage
While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store?
Property damage liability
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 occured when the concrete fell
In personal auto policies, the term "you" refers to
The named insured
Uninsured Motorist property damage coverage is subject to a deductible of
$250 per accident
The minimum limts for bodily injury to 2 or more persons injured in a single accident is
$30,000
An insured hits a deer and crashes his car into a tree. The total damage to the vehicle is $6,000. How will this loss be covered?
$6,000 would be paid under other-than-collision coverage
An insured owns and operates a ranch. The insured has several vehicles that are used in the ranching operation and for personal use. Which of the following could NOT be insured under a personal auto policy?
A two-ton grain truck with a 6,500-pound capacity, only up to 4,000 pounds
An uninsured motor vehicle includes all of the following EXCEPT
A vehicle being used for public livery
Of the following, which is NOT defined in the personal auto policy as an uninsured motor vehicle?
A vehicle owned by a government entity
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
An insured is driving her automobile and strikes a large pothole that casues a flat tire. Which coverage of the insured's personal auto policy will pay for the repair?
Loss is not covered
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
A meteorite hits the insured's car, causing damage. Under which of the following coverages in a personal auto policy would this loss be paid?
Other-than-collision
The Louisiana Automobile Insurance Plan was established to
Provide a method of insuring licensed drivers who are unable to purchase auto liability insurance in the voluntary market
Which one of the following symbols used in business auto coverage is correctly described?
Symbol 9 - nonowned autos only
A passenger in a friend's car is injured while getting into the car. Which of the folllowing statements would apply if both the passenger and the driver had medical payments coverage under 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 personal auto policy?
The insured is injured while driving his motorcycle on his resident premises
The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT
The insured is injured while exiting a friend's mobile home
With respect to commercial auto policies, the garage coverage form provides liability protection for all of the following EXCEPT
The insured's business income losses due to personal injury
All of the following are true regarding physical damage coverage EXCEPT
The limit 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
Which of the following would not be an allowable reason for an insurer to cancel or nonrenew an automoblile insurance policy?
The named insured attained age 75 years
Who is NOT an insured for liability on a BAP?
The owner of a car the insured borrows
What is the purpose of the regulation on aftermarket crash parts?
To provide disclosure to consumers regarding the use and costs of those parts
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
What type of coverage protects the insured in an accident caused by a driver with insufficient coverage?
Underinsured motorist
What is the name for the type of property damage coverage that protects the insured or the covered auto in an accident with someone who does not have coverage?
Uninsured motorist
What is the business auto coverage territory for?
United States and its territories, Canada, or worldwide for private passenger hired autos
All of following are supplemental payments included in the liability section of a personal auto policy EXCEPT
Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident
All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT
Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident
Under the business auto coverage form, mobile equipment is covered for liability insurance
When being carried or towed by a covered auto
When are the limits for uninsured motorist coverage set?
When the coverage is purchased
The bankruptcy provision found in the personal auto policy states that bankruptcy of the insured
Will not relieve the insurer of its policy obligations
Symbol 1 is used for
any auto
The insurer must advise the named insured of possible eligibility for coverage through the Assigned Risk Plan when an auto policy is canceled for a reason other than
nonpayment of premium
Symbol 2 is used for
owned autos only
Symbol 7 is used for
specifically described autos only