CHAPTER 6

Unendorsed Personal Auto policies would refuse to provide liability coverage for:

A vehicle with fewer than four wheels

Part B - Medical Payments Coverage of a Personal Auto policy would cover medical expenses sutained by any insured while they occupy:

A car used to carpool with colleagues

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

Which of the following would not be covered under a Personal Auto Policy?

A motorcycle

Policyholder B has a PAP with limits of 100/300/50. In an accident for which B was liable, there were bodily injury claims in the amounts of $80,000, $100,000, and $125,000; and property damage claims of $20,000 and $35,000. How much will B's policy pay?

$280,000 for bodily injury and $50,000 for property damage

T has two Personal Auto policies applying to an auto. The policy through Company A has a limit of $25,000 per accident for property damage liability. The policy through Company B has a limit of $50,000 per accident for property damage liability. How much will Company B have to pay for a covered loss of $6,000 after T damages someone else's property?

$4,000

Policyholder J hit a deer with their Honda. J has collision coverage with a $250 deductible and other than collision coverage with a $50 deductible. The damage to J's car was $450. How much will the policy pay?

$400

The Miscellaneous Type Vehicle Endorsement attached to a Personal Auto Policy allows eligibility of a motorcycle by:

Amending the definition of 'your covered auto' and 'newly acquired auto' to include any miscellaneous type vehicle

A Personal Auto policy is designed to cover:

An individual's or their family's personal use of an auto

Under the Personal Auto Policy, when the insured and the insurer do not agree on the insured's legal right to recovery of damages or the amount recoverable by the insured, what system is used to resolve the disagreement?

Arbitration

After a Personal Auto policy is in effect for 60 days, which of the following is not a valid reason to cancel the policy?

Claims history

Liability coverage provided by a Personal Auto policy would cover which of the following damages?

Damage to a private garage rented to the insured, caused by the insured's child driving a covered auto

Collision coverage under Part D of a Personal Auto policy would cover:

Damage to the insured auto after crashing into a light pole

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

All of the following are true regarding liability coverage provided by a Personal Auto policy, except:

It is written only with split limits of liability

Choose the false statement about a newly acquired additional vehicle under the PAP:

It may be used to transport goods for hire if receipts are less than $10,000

Which of the following best describes the Towing and Labor Costs endorsement to the Personal Auto Policy?

It provides payment for towing to a garage, or for labor that is performed at the site of a mechanical disablement

Which of the following is true about the Insuring Agreement of Part D under the Personal Auto Policy?

It states that the policy will pay for direct and accidental physical loss to the covered auto regardless of fault

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

Physical damage coverage on a Personal Auto policy may cover which of the following losses to Your Covered Auto?

Malicious mischief to tires

Coverage for recreational vehicles and motor homes can be added to a Personal Auto policy by the:

Miscellaneous Type Vehicle Endorsement

An insured puts $50,000 of covered inventory into storage, where the items are later damaged by a covered peril. What provision on the insured's property policy prevents the storage facility from collecting any payment from the insured's claim?

No Benefit to Bailee

Insureds who have collision and comprehensive coverage for a covered auto under Part D of their Personal Auto policy are subject to:

One deductible for collision losses and a separate deductible for comprehensive losses

A bird hits and breaks the windshield of an insured vehicle. This is covered under which of the following coverages of a Personal Auto policy?

Other than collision coverage

All of the following are true of Part D - Coverage for Damage to Your Auto on a Personal Auto policy, except:

Part D covers damage to the insured auto and to another auto with which it collided

Generally, which of the following vehicles is not eligible for coverage under a standard Personal Auto policy?

Pickup with gross vehicle weight of 12,000 lbs.

Supplementary payments under Part A - Liability Coverage of a Personal Auto policy will pay:

Premiums on appeal bonds

Which of the following is an insured's duty in the event of loss covered by a Personal Auto policy?

Promptly notify the police in the event of a hit-and-run accident

When an auto has two Personal Auto policies with the same insurer, the insurer's liability would not exceed:

The highest limit of the two policies

To whom must the insured assign recovery rights after being paid by the insurance company for a collision loss caused by another party?

The insured must assign the rights to the insurance company to recover from the negligent party or insurer

Which of the following persons cannot collect a claim payment under Uninsured Motorist coverage?

The owner of a parked car struck by a falling object

Under a Personal Auto policy, all of the following are correct about medical payments coverage, except:

The policy limit is applied on a per occurrence basis, not per person

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?

The van

When a Personal Auto policy includes Other Than Collision coverage, physical damage coverage will cover all of the following losses, except:

Theft of the insured's cell phone from the auto

Under medical payments coverage provided by a Personal Auto policy, how long after an accident does the insured have coverage for resulting medical expenses?

Three years

Which coverage protects the insured against drivers who do not have auto liability insurance limits adequate to cover a loss?

Underinsured Motorists Coverage

S carries a Personal Auto policy with liability limits of 50/100/25. S strikes another vehicle, causing bodily injuries to the driver equal to $70,000, bodily injuries to one passenger equal to $30,000, and bodily injury to a second passenger equal to $50,000. The accident also causes $20,000 worth of property damage to the other vehicle. What is the maximum S's policy will pay for the bodily injury and property damage claims?

$120,000

An insured, whose Personal Auto policy has 25/50/10 limits, is at-ault in a car accident. Claimant A has bodily injuries in the amount of $25,000. Claimant B has bodily injuries equaling $20,500. Claimant C has bodily injuries equaling $4,000. What is the insurer's liability for this accident?

$49,500

After a 4-car accident caused by the insured, Claimant A has bodily injuries in the amount of $49,500, Claimant B has bodily injuries equaling $19,500, and Claimant C has bodily injuries equaling $14,000. If the insured's Personal Auto policy limits are 25/50/10, what will the insurer pay?

$50,000

Under the PAP, after a collision the insured is entitled to Transportation expenses up to:

$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 slips on an icy patch on the road and collides with a tree. The insured's Personal Auto policy will provide coverage as long as the insured:

Allows the insurer to inspect the damage before repairs

The Extended Non-Owned Coverage Endorsement available to Personal Auto policies should be added by an insured who is:

Being furnished a company car

An insured accidentally backs into the neighbor's son on his skateboard. The son has medical expenses, and there is damage to the skateboard. Which sections of the insured's Personal Auto policy will pay?

Bodily injury and property damage

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

Collision coverage

An insured has a Personal Auto policy with comprehensive coverage. After a tree falls on the insured's vehicle during a windstorm, the auto is unusable and must be repaired. If the insured incurs any transportation expenses, Part D of the policy will:

Cover transportation expenses incurred beginning 24 hours after the loss

Part D of the Personal Auto Policy provides which of the following coverages?

Coverage for Damage to Your Auto

Which of these statements is not true about Uninsured Motorist coverage?

Coverage is automatically provided for the damage to the insured vehicle

Which of the following is false under the Personal Auto Policy?

Coverage is provided for theft under property damage liability

The definition of bodily injury in the Personal Auto policy includes which of the following?

Sickness or disease

The limit of liability applying to medical payments coverage on a Personal Auto policy applies to:

Each person injured in any one accident

Which statement is correct about medical payments provided by a Personal Auto policy?

Expenses for medical services sustained by the insured are covered

Which of the following losses could be covered under Part D of a Personal Auto policy?

Flood damage to a convertible when the top is left down

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

Which statement is not correct about the Right to Recover Payment under the PAP?

The Right to Recover is an insured's right

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

Which of the following are the Territorial Limits of the Personal Auto Policy?

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

Under the PAP, a temporary substitute would be covered if used:

While an insured auto needs servicing

Uninsured motorist coverage provided by a Personal Auto policy covers insureds while they occupy or use which of the following vehicles?

A covered vehicle owned by the named insured

When the Limited Mexico Coverage Endorsement is added to a Personal Auto policy, it provides coverage while the covered autos is how many miles into Mexico?

25 miles

An insured's covered auto is stolen, and the insured incurs transportation expenses in order to get to work each day. Transportation expenses coverage under Part D of their Personal Auto policy begins how long after the theft?

48 hours

A leased auto is eligible for coverage under a Personal Auto policy if the lease contract is for a continuous period of at least:

6 months

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

A $250 bail bond

Under a Personal Auto policy, medical payments do not apply to passengers occupying which of the following?

A cargo van used in the course of employment by the insured's business

Insureds under Part C - Uninsured Motorists Coverage of a Personal Auto policy include:

A family member, occupying an insured auto struck by an uninsured vehicle

Which of the following is a covered auto under a Personal Auto policy's liability coverage?

A new vehicle purchased 7 days ago to replace an old vehicle, but not yet reported to the insurer

Under a Personal Auto policy, medical payments coverage is provided for which of the following?

A passenger while occupying a covered auto

The Personal Auto policy's definition of family member includes:

A person related to the named insured who is a resident of the household, including a foster child

Under the Personal Auto policy, a family member is defined as which of the following?

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

Physical damage to which of the following items is covered by an unendorsed Personal Auto policy?

A pickup's bedliner

Which of the following is not eligible for coverage under a Personal Auto policy?

A private passenger auto used as a taxicab

A temporary substitute vehicle is not considered a Your Covered Auto if it is used to substitute for which of the following?

A rental car that broke down

Under Part A of a Personal Auto policy, which of the following is not an insured?

A thief involved in a high-speed police chase

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

A van used to deliver shipments from a warehouse

Which of the following is covered under a Personal Auto Policy?

A vehicle driven with permission by an unlicensed driver

The definition of an uninsured motor vehicle under a standard Personal Auto policy does not include:

A vehicle newly acquired by the named insured that has not been reported to the insurer

Which of the following is not considered an uninsured motorist vehicle under the Personal Auto Policy?

A vehicle newly acquired by the named insured that has not been reported to the insurer

Which of the following vehicles is not considered an uninsured motor vehicle under Part C of a Personal Auto policy?

A vehicle owned by the government

Which of the following vehicles is not considered an uninsured vehicle?

A vehicle owned by the government

A standard Personal Auto policy considers all of the following to be uninsured motor vehicles, except:

A vehicle that is being used as a residence

Bodily injury sustained by an insured would be covered under Part B - Medical Payments Coverage of a Personal Auto policy if the insured is occupying which vehicle?

A vehicle used for car pools

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?

C's policy

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 Part A - Liability Coverage of a Personal Auto policy, which of the following statements regarding the limit of liability is incorrect?

If the loss is covered under more than one part of the policy, payment will be duplicated

Which of the following is correct regarding Other Insurance under Part A of the Personal Auto Policy?

If there is other liability coverage applicable to the insured auto, the policy will pay the proportion that the limit of liability bears to the total of all limits

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

Which of the following is not a supplementary payment provided by the liability coverage of a Personal Auto policy?

Medical payments for an occupant of an insured vehicle

Part E of the Personal Auto Policy states that after a loss the insured must:

Protect the auto from further damage

A Personal Auto policy would consider all of the following to be examples of occupying a vehicle, except:

Standing by the car to see damage after an accident

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?

The insured's Personal Auto policy

Collision coverage provided by a Personal Auto policy applies to:

The insured's car, regardless of liability

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

The limit of liability of Part D - Coverage for Damage to Your Auto under a Personal Auto policy states that the limit is:

The lesser of the actual cash value of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality

An insured is on vacation and using a vehicle in a state that is different from their home state where the auto is principally garaged. Which of the following statements best describes how liability coverage provided by the insured's Personal Auto policy applies in the different state?

The liability limits are automatically adjusted to the minimum limits required by the state, if the original policy limits do not meet those requirements

A Personal Auto policy's liability coverage would protect the insured in the event that:

The named insured's resident family member injures someone in an accident while using a covered auto without the insured's permission

In the event of an accident, all of the following people may receive medical payments under a Personal Auto policy, except:

The named insured, who is struck as a pedestrian by an ATV