Part 6. Personal Auto Policy

Question 12. S carries a Personal Auto Policy with Liability limits of 50/100/25. What is the maximum the policy will pay if S struck another vehicle causing injury to the occupants as follows: Driver - $70,000; Passenger 1-$30,000; Passenger 2-$50,000 and property damage to the other vehicle - $20,000? A. 150,000 B. 120,000 C. 125,000 D. 170,000

120,000 - Coverage is as follows: Driver - $50,000; Passenger 1 - $30,000; Passenger 2 - $20,000, since the policy will only pay $50,000 per person and a total of $100,000 per accident. The property damage is fully covered, totaling $120,000.

Question 3. Under Part D, within how many days must an insured report the purchase of a new vehicle that is replacing the existing vehicle covered by collision coverage A. 15 B. 4 C. 14 D. 5

14 - If a vehicle covered by Part D coverages is replaced by a new car with the same coverage, the policy will automatically extend coverage for 14 days.

Question 13. If the insurer non-renews an insureds policy for underwriting reasons, what is the minimum number of days' notice to the insured? a. 30 b. 20 c. 45 d. 60

20 - At least 20 days' notice is required.

Question 13 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. 9500 B. 21500 C. 21000 D. 11000

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.

Question 6. A medical payments claim will be paid by the insurer within how many months from the date of the occurrence? A. 36 B. 18 C. 60 D. 24

36 months - A Medical Payments claim will be paid within 3 years for reasonable expenses for medical and funeral expenses regardless of fault.

Question 10. Transportation Expenses Coverage under Part D of the Personal Auto Policy begins how long after the covered auto has been stolen? A. Immediately B. 72 hours C. 48 hours D. 24 hours

48 hours - Transportation Expenses Coverage pays $20 per day, up to $600, for transportation expenses incurred due to loss of the covered auto. Coverage begins 48 hours after a theft.

Question1. A private passenger auto includes a leased vehicle as long as the lease contract is continuous for how many months duration? A. 6 B. 3 C. 9 D. 12

6 - A lease for less than 6 months is not considered a private passenger auto eligible for coverage under the Personal Auto Policy.

Question 9. Which of the following is true about the Insuring Agreement of Part D under the Personal Auto Policy? A. It outlines the insured's duties after a loss or accident B. It states that Comprehensive coverage includes upset of a covered vehicle C. It states that the policy will pay for direct and accidental physical loss to the covered auto regardless of fault D. It sets forth the coverage of transportation expenses

: It states that the policy will pay for direct and accidental physical loss to the covered auto regardless of fault - The Insuring Agreement of Part D states that the insurer will pay for loss to the covered auto, including its equipment, minus any applicable deductible.

Question 9. An uninsured motor vehicle is any of the following except? A. A vehicle insured by an insolvent insurance company B. A company car C. A vehicle with liability limits less than the state requirement D. A vehicle that does not have insurance

A company car - Besides a company car, a vehicle owned by the insured or a family member, or a vehicle furnished or available for the regular use of the named insured or a family member, is not considered an uninsured vehicle

Question 2. Under the Personal Auto Policy, Medical Payments coverage is provided for which of the following? A. A passenger while occupying the covered auto B. The policyholder's vehicle while it is being used as a public or livery conveyance C. A vehicle being used in a recognized racing activity D. Any person while occupying a vehicle that has fewer than four wheels

A passenger while occupying the covered auto - Vehicles with less than four wheels, and those used for racing or for public liveries, are not covered under the PAP.

Question 8. Which of the following is covered under a Personal Auto Policy? A. Use of a non-owned vehicle used without permission B. Liability for damage caused by a vehicle designed mainly for off road use C. Intentional damage done by the insured D. A vehicle driven with permission by an unlicensed driver

A vehicle driven with permission by an unlicensed driver - The policy defines insured as used in Part A, as the named insured or another person using the covered auto with permission, even if not licensed.

Question 15. Which of the following is not considered an uninsured motorist vehicle under the Personal Auto Policy? A. A vehicle newly acquired by the named insured that has not been reported to the insurer B. A vehicle insured by a bankrupt insurance company C. A vehicle for which there is no liability policy D. A hit and run vehicle

A vehicle owned by the insured would not fit the definition of an uninsured vehicle.

Question 5. Uninsured Motorist Coverage under a Personal Auto Policy covers which of the following vehicles? A. A vehicle owned by the named insured B. A vehicle used primarily for use off public roads C. Any vehicle being used to carry property or persons for a fee D. A vehicle being driven without permission

A vehicle owned by the named insured - Coverage does not apply to non covered vehicles, nor when a person is using the vehicle without permission.

Question 8. Which of the following is covered under Part C - Uninsured Motorist Coverage? A. A family member is struck by an insured vehicle B. The insured is also covered by Workers' Compensation C. Accident was caused by a hit-and-run driver D. Punitive damages awarded for the insured

Accident was caused by a hit-and-run driver - A hit-and-run vehicle can't be identified and is therefore considered uninsured.

Question 4. The Miscellaneous Type Vehicle Endorsement attached to a Personal Auto Policy allows eligibility of a motorcycle by: A. Amending the definition of 'your covered auto' and 'newly acquired auto' to include any miscellaneous type vehicle B. Specifically naming it in the Declarations C. Adding motorcycles to the list of eligible vehicles D. Altering the four-wheel requirement

Amending the definition of 'your covered auto' and 'newly acquired auto' to include any miscellaneous type vehicle - The endorsement amends the definition of covered vehicle to include motorcycles.

Question 5. The limit of liability is the most paid by the insurer regardless of all of the following except? A. Amount of surcharges to be applied to policy B. Number of insureds C. Number of vehicles involved D. Premiums shown

Amount of surcharges to be applied to policy - The amount of surcharge to be applied to the policy is not linked to the limit of liability.

Question 14. Which of the following will be paid by Supplementary Payments under Part A of the Personal Auto Policy? A. $1,000 for loss of earnings when the insured is disabled B. Medical expenses when the insured's daughter is injured in an auto accident C. A $250 bail bond D. A judgment against the insured up to 10% above liability limits

Answer: A $250 bail bond - Of these choices, only bail bonds is a Supplementary Payment. The policy limit is $250

Question 12. Which of the following is not a duty of the insured if the insureds vehicle is damaged when it hit a tree? a. Submit a proof of loss b. Call the police c. Promptly notify the insurance company d. Submit to a physical exam

Call the police - Calling the police is only a duty when seeking uninsured motorist coverage.

Question 7. Which of the following is not true about medical payments under the Personal Auto Policy? a. Coverage applies only for medical expenses incurred within one year of the accident b. Medical expenses of all persons occupying the insured auto are covered c. The coverage limit applies per person, per accident d. Medical expenses of the insured and family members are covered

Coverage applies only for medical expenses incurred within one year of the accident - Medical Payments coverage includes medical expenses incurred within 3 years from the accident.

Question 15. What is the purpose of the extended non-owned coverage for a named individual endorsement? A. Coverage is extended 25 miles into Mexico B. Covers an individual who does not own a car C. Covers non-owned vehicles furnished for the insured's regular use D. Extends coverage for a leased vehicle

Covers non-owned vehicles furnished for the insured's regular use - This endorsement provides excess coverage over the primary coverage insuring the non-owned vehicle.

Question 7. Which of the following uses of a vehicle is not excluded under the medical payments coverage? A. Insured uses a truck for incidental purposes B. A neighbor uses the insured's car without permission C. An insured rides a motorcycle D. An insured drives a company car

Insured uses a truck for incidental purposes - Bodily injury sustained by an insured isn't covered if the insured is using a vehicle while engaged in business. However, a coverage giveback applies to private passenger autos, pickups, vans, and owned trailers used with such vehicles. This exclusion applies to the business use of trucks and other commercial vehicles.

Question 11. All of the following are true of automobile liability coverage, except: a. It pays up to $500/day for loss of income by the insured b. It protects the insured for losses when the insured is legally liable c. t may be written with either split or single limits d. It provides third party protection

It pays up to $500/day for loss of income by the insured - Supplementary payments include compensation for loss of income up to $200/day.

Question 3. Choose the physical damage claim that would be covered under the Personal Auto Policy. A. Loss due to radioactive contamination B. Mechanical breakdown C. Loss due to war D. Malicious mischief to the tires

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

Question 4. Each of the following is a Part A - Liability Coverage supplementary payment except? A. Premiums on appeal bonds B. $250 for the cost of a bail bond C. $200 a day for loss of earnings due to an insurer request to assist in the trial D. Payment for all defense costs

Payment for all defense costs - Payment for all defense costs is part of the Part A - Liability Coverage Insuring Agreement, which also includes payment for bodily injury or property damage for which the insured is legally responsible.

Question 10. Comprehensive covers all of the following losses except? A. Rollover B. Contact with a deer C. Theft D. Falling objects

Rollover - Rollover and hitting another vehicle or object are covered by collision coverage.

Question 14. After an automobile policy has been in effect for 60 days, the insurer may cancel the policy for any of the following reasons except? A. Material misrepresentation of information on the application by the insured B. Suspension of the driver's license of the named insured's or household resident C. Non-payment of premium D. Submission of four or more claims during a single policy period

Submission of four or more claims during a single policy period - Claims history is generally a valid reason for non-renewing a policy, not cancelling the policy mid-policy term.

Question 2. A_______ vehicle is a covered vehicle when your covered auto is being repaired due to a covered loss? A. Temporary substitute B. Conditional C. Replacement D. Substitute

Temporary substitute - A temporary substitute is also covered if the vehicle is out of normal use due to breakdown, servicing, loss, or destruction.

Question 6. Which of the following is included in the Personal Auto Policy's coverage territory? A. The U.S., its territories, Canada, and Puerto Rico B. The U.S., its territories, Canada, Puerto Rico, and Mexico C. Anywhere location worldwide D. The U.S. and its territories only

The U.S., its territories, Canada, and Puerto Rico - The policy only provides coverage for accidents and losses that occur during the policy period and within the policy territory. The policy territory is the United States of America, its territories and possessions, Puerto Rico, and Canada, and while being transported between their ports. Mexico is NOT in the policy territory.

Question 1 Which of the following are the Territorial Limits of the Personal Auto Policy? A. The United States, Mexico, and Canada B. The United States, its territories and possessions, Canada, and Mexico C. The United States, Puerto Rico, Canada, and Mexico D. The United States, its territories and possessions, Puerto Rico, and Canada

The United States, its territories and possessions, Puerto Rico, and Canada - The policy covers only accidents and losses that occur within the Policy Territory. Mexico does not fall within the policy territory as the policy is written.

Question 11. The insurers limit of liability for a vehicle damaged by a loss under part d is which of the following? A. Replacement value B. Actual cash value C. The lesser of actual cash value and replacement value D. The greater of actual cash value and replacement value

The lesser of actual cash value and replacement value - The insurer's limit of liability for loss is the lesser of the actual cash value (ACV) of the vehicle and the amount necessary to repair or replace the vehicle with another of like kind and quality