Personal Auto Policy

Under a Personal Auto Policy, the insurer will pay for transportation expenses at $20 per day; $600 maximum. What is the deductible amount that will apply to this coverage? ( )$0 ( )Whatever the Policy deductible is ( )$100 ( )$500

$0

What is the standard deductible that is applied to Personal Injury Protection payments? ( )$100 ( )$1,000 ( )$500 ( )$0

$0 Explanation: Personal Injury Protection (PIP) has no deductible applied to it.

Liam has a Personal Auto Policy with a basic PIP limit of $10,000 and Liability split limits of 20/40/10. His mother lives with him, but she owns no car. Mom is driving his car and is struck by another car. She is hurt and has $16,000 in medical bills. How much in total (if any) will Liam's policy pay for his mother's bills? ( )$10,000 ( )$6,000 ( )$16,000 ( )$20,000

$10,000

Operating a motor vehicle without the required insurance is a misdemeanor punishable by a fine of between . . . ( )$350 and $1000 for the first offense ( )$175 and $350 for the first offense ( )$175 and $350 for subsequent offenses ( )$1000 and $2000 for subsequent offenses

$175 and $350 for the first offense

John's home state requires liability limits of 10/20/15. John travels to another state that has minimum requirements of 20/40/20. John has an accident in this state while he is there causing $35,000 bodily injury to the other driver and $15,000 to the other driver's car. How much will the other driver receive from John's insurance for the $35,000 of bodily injury he received? ( )$10,000 ( )$15,000 ( )$20,000 ( )$35,000

$20,000

An auto policy with split limits of 15/30/5 would pay what maximum amount in the event of a covered bodily injury loss to three people? ( )$30,000 ( )$5,000 ( )$45,000 ( )$15,000

$30,000

Automobile limits of liability expressed as 30/80/25 mean which of the following: ( )$30,000 Bodily Injury for each person, $80,000 Property Damage per accident, $25,000 uninsured motorists coverage per accident ( )$30,000 Property Damage per accident; $80,000 Bodily Injury per accident, $25,000 Bodily Injury for each person ( )$30,000 Bodily Injury for each person, $80,000 Bodily Injury for each accident, $25,000 Property Damage for each accident ( )$30,000 Bodily Injury for each person, $80,000 Property Damage for each accident, $25,000 medical payments per person

$30,000 Bodily Injury for each person, $80,000 Bodily Injury for each accident, $25,000 Property Damage for each accident

As a result of an auto accident, the insured sustains bodily injury worth $50,000. The responsible party carries auto liability insurance in the amount of 15/30/5. The insured's $100,000 underinsured motorist coverage would pay which of the following: ( )$15,000 ( )$50,000 ( )$35,000 ( )$0

$35,000 Explanation: The purpose of underinsured motorist coverage is to pay the difference in the amount payable by the negligent party and the actual damages sustained by the insured. The responsible party in this case would pay $15,000 and the insured's policy would pay the different of $35,000 ($50,000 - $15,000).

Lynn Samuels carried 15/30/5 limits on his auto. He negligently ran into a parked car containing three passengers resulting in the following claims: Larry = bodily injury (BI) - $18,000 and property damage (PD) - $8,000 Curly = BI - $8,000 Moe = BI - $4,000 In addition to these settlement awards, there were $18,000 in legal fees. In response to this accident, Lynn's PAP will pay which of the following amounts? ( )$56,000 ( )$32,000 ( )$50,000 ( )$38,000

$50,000 Explanation: This is an example of a split limit claim. Payment is as follows: Larry = BI - $15,000; PD - $5,000 Curly = $8,000 Moe = $4,000 This amount totals $32,000. The defense costs of $18,000 are covered and paid by the insurer which brings the total to $50,000.

Mark's vehicle was stolen while he was at lunch this afternoon. Immediately he notified the police and his insurance company of the loss. Under Mark's PAP, the insurer will pay transportation expenses beginning 48 hrs after the theft. What is the maximum dollar benefit he can receive? ( )$600 ( )$500 ( )$1,000 ( )$700

$600

What is the maximum weight of a vehicle that can be covered under a personal auto policy? ( )8,000 pounds ( )10,000 pounds ( )4,000 pounds ( )5,000 pounds

10,000 pounds

In a Personal Auto Policy, Part B - Medical Payments coverage will cover injuries related to the accident for how many years from the accident? ( )3 years ( )2 years ( )10 years ( )1 year

3 years

An insurer may cancel a Personal Automobile Policy on its 12-month anniversary by providing how many days advance notice of its intent? ( )10 ( )20 ( )30 ( )5

30

Mark's vehicle was stolen while he was at lunch this afternoon. Immediately he notified the police and his insurance company of the loss. Under Mark's PAP, when would Mark be able to get a rental car to replace the stolen vehicle while the claim is going through the process? ( )1 day after the theft ( )48 Hours after Mark reported it ( )48 Hours after the theft ( )1 week after the loss

48 Hours after the theft

Which of the following would be covered under Jan's comprehensive coverage on her Jeep? ( )Rust on the door from the salt on the roads ( )A customer at the grocery store let her shopping cart getaway and hit Jan's Jeep ( )Worn out tires ( )A broken exhaust manifold

A customer at the grocery store let her shopping cart get away and hit Jan's Jeep

Why is salvage important to the insurer? ( )It keeps broken cars off the road ( )It preserves the evidence of a crash ( )It is required by law ( )A damaged car has a value that the insurer can recover some expense with

A damaged car has value that the insurer can recover some expense with

Which of the following would be covered under a PAP? ( )A three-wheeled vehicle used in a medical emergency ( )A truck the insured rented that is over 10,000 gross vehicle weight ( )A large rented motor home ( )A motorcycle

A three-wheeled vehicle used in a medical emergency

Which of the following would not be considered a "covered auto"? ( )A trailer that is owned ( )A work car being used for personal errands ( )Vehicle listed on the declarations page ( )New vehicle just purchased

A work car being used for personal errands

According to the definition of a "family member," they must be related to you by: ( )Adoption ( )Blood ( )All are correct ( )Marriage

All are correct

Under a Personal Auto policy, which of the following persons would be excluded from coverage for Bodily Injury (BI) and Property Damage (PD) liability? ( )An employee of the named insured while transporting passengers for a fee ( )The named insured's spouse who resides in the same household as the insured ( )Any person legally responsible for the use of the automobile with the insured's permission ( )Any person using the car with the permission of the insured

An employee of the named insured while transporting passengers for a fee

Medical Payments coverage provided by a PAP applies to each of the following EXCEPT: ( )Any pedestrian who is struck by the named insured's auto ( )Any member of the named insured's family while occupying any vehicle ( )Any person occupying a covered auto ( )Any insured who, as a pedestrian, is struck by a vehicle

Any pedestrian who is struck by the named insured's auto Explanation: Coverage applies to all members of the insured's family and any other person who occupies a covered auto. A pedestrian struck by a covered auto is not covered by medical payments, but may file a liability claim.

What does the acronym BI stand for? ( )Broken Injury ( )Bad Insurance ( )Bodily Injury ( )Broad Insurance

Bodily Injury

Which of the following losses would be covered under the liability portion of a Personal Auto policy? ( )Bodily injury arising out of the use of a rented golf cart ( )Bodily injury caused intentionally by the insured ( )Property damage caused by a carjacker who stole the insured's car ( )Bodily injury arising out of the use of an auto in business

Bodily injury arising out of the use of a rented golf cart

Which of the following items would NOT be covered under Part D in John's auto policy? ( )Building supplies for his church ( )Radar detector mounted in his dash ( )Subwoofer installed under his back seat ( )DVD player installed in headrests

Building supplies for his church

While Personal Injury Protection (PIP) benefits under an auto policy are paid without regard to fault, an insurer may not pay benefits for any injury: ( )Under $500 ( )Caused by a public vehicle ( )Caused to the insured by the insured ( )Caused by an underinsured driver

Caused to the insured by the insured

Part D of a Personal Auto Policy covers what? ( )Medical Payments Coverage ( )Uninsured Motorists Coverage ( )Coverage for Damage to your auto ( )Liability Coverage

Coverage for Damage to your auto

Which of the following losses is covered under the Physical Damage coverage of a Personal Auto policy? ( )Tire damage ( )Loss caused by freezing of the cooling system ( )Damage to a permanently installed CD player ( )Damage to equipment designed for detecting radar

Damage to a permanently installed CD player

The Personal Auto policy liability coverage excludes all of the following EXCEPT: ( )Damage to insured property ( )Damage to property of others due to the insured's motor vehicle negligence ( )Damage to property of others in the insured's care ( )Intentional injury

Damage to property of others due to the insured's motor vehicle negligence

What can be found at the end of a Personal Auto Policy? ( )Endorsements ( )Declaration Page ( )Part A - Liability Coverage ( )Definitions Page

Endorsements

Lori works for Celanese, Inc. As part of her compensation package, she is supplied with a company car which she uses every day to travel to and from work. Lori wants to make sure that the liability coverage under her own Personal Auto Policy covers her while driving the company car. What should she ask her agent to add to her own policy? ( )Drive Other Car coverage ( )Non-owned Vehicle Liability coverage ( )Named Non-owned coverage ( )Extended Non-owned Liability coverage

Extended Non-owned Liability coverage

In a Personal Auto Policy, the definition of a "covered auto" does NOT include which of the following: ( )Trailers owned by the named insured ( )Private passenger autos the named insured acquires during the policy period ( )Autos or trailers not owned by the named insured that is being used as a temporary substitute ( )Farm wagons towed by a tractor

Farm wagons towed by a tractor

Carlee and Jeff have just been in a car accident in their covered auto. Which of the following is NOT one of their duties after the loss? ( )Permit the insurance company to inspect the damaged auto before repairs are started ( )Submit to a physical exam if needed ( )Notify the insurance company ( )Get three estimates for the repairs

Get three estimates for the repairs

When can you as the insured bring a lawsuit or legal action against the insurer? ( )If you disagree with their valuation of the car ( )If the insurer did not comply with the terms of the policy ( )If they didn't pay what you wanted ( )If they didn't cover your accident

If the insurer did not comply with the terms of the policy

Who is eligible to buy a Personal Auto Policy? ( )John for his personal car ( )Sam for his pickup truck he rents out for income ( )Bill for his company truck ( )John for his delivery van for his home based business

John for his personal car

Which of the following can NOT be covered under a PAP? ( )Bill's truck he uses on his farm ( )John's truck that he uses for his pool cleaning business ( )Carl's leased car he got for his wife ( )Sue's car that she lets her son drive

John's truck that he uses for his pool cleaning business

When Molly gets to her car to leave for work one morning, she finds that one of her car windows is broken and there are some missing items from the car. She has comprehensive coverage on the auto. Which of the following items would NOT be covered under part D? ( )Dashboard trim ( )Window ( )Radio/CD player ( )Laptop computer

Laptop computer

Part A of a Personal Auto Policy covers what? ( )Liability Coverage ( )Coverage for Damage to your auto ( )Medical Payments Coverage ( )Uninsured Motorists Coverage

Liability Coverage

What is the only insurance required on your vehicle by state law? ( )State Insurance ( )Rental Insurance ( )Liability Insurance ( )Comprehensive Insurance

Liability Insurance

Connie has liability coverage of 20/60/40. What does the 40 represent? ( )Maximum coverage for personal injury per person per accident ( )Maximum coverage for property damage per accident ( )Maximum coverage for the entire accident including personal injury and property damage ( )Maximum coverage for all injured per accident

Maximum coverage for property damage per accident

Johnny has a truck and everyone in his neighborhood asks Johnny to help them when they need large items moved. Johnny was moving a couch for his neighbor Debbie. The couch wasn't tied down enough to keep the wind from catching it. The couch flew out and was destroyed when it hit the pavement. Nobody got hurt and no other vehicles were damaged by the couch. Does Johnny's liability insurance cover Debbie's couch? ( )Yes, If Debbie was riding with Johnny ( )Yes, if Debbie was paying him to move it ( )Yes, if Johnny was the one who loaded the couch into his truck ( )No

No

John has PIP coverage on his Personal Auto Policy. He was racing with his friends on a back street of an old industrial area of town. The cops showed up and John fled in his car. As he was fleeing the cops, he ran into another car. This accident resulted in $10,000 of bodily injury to John. Will PIP pay? ( )No, because he was not alone ( )No, because he was abating the law ( )Yes, because he wasn't racing at the time of the accident ( )Yes, because PIP provides no-fault insurance

No, because he was abating the law

In a Personal Auto Policy (PAP), a "covered auto" includes all of the following EXCEPT: ( )Private passenger auto listed in the Declarations ( )An owned trailer ( )Non-owned auto ( )Temporary substitute

Non-owned auto

When may an insured sue their insurance company? ( )If the insured's coverage was not needed and they want their premium refunded ( )If the insured didn't receive enough money for their recent claim ( )If the insured's coverage is not what they remembered it to be ( )Not until the insured has complied with all policy provisions

Not until the insured has complied with all policy provisions

Amy was at the grocery store, and when she went to leave her car would not start. She had to call a tow truck and spent $400 in repairs at the shop for the plugged fuel injectors. What will Amy's Personal Auto Policy cover in this instance? ( )Cost to repair car ( )Cost to repair car and tow truck ( )Nothing ( )Only the cost of a tow truck

Nothing

Carl was driving down the road and his car's driveshaft broke leaving him out of state with no transportation. What will Carl's Personal Auto Policy cover in this instance? ( )Only cost of rental car ( )Cost to repair car ( )Cost to repair the car and rental car ( )Nothing

Nothing Explanation: Personal Auto Policy does not cover mechanical breakdown. So nothing would be covered in this instance.

Rebekah drives Caitlin's car. Both of them have a Personal Auto policy. If Rebekah causes an accident while driving Caitlin's car, which statement is CORRECT regarding coverage? ( )Only Caitlin's policy will pay for any damages ( )Rebekah's policy is primary and Caitlin's is excess ( )Caitlin's policy is primary and Rebekah's is excess ( )Only Rebekah's policy will pay for any damages

Only Caitlin's policy will pay for any damages

Manuel had a forest fire start in his backyard and burn his 2018 Camry. What coverage would Manuel need on his PAP to cover this loss? ( )Part A - Liability Coverage ( )Part B - Medical Payments ( )Part C - Uninsured Motorists ( )Part D - Damage to Your Auto

Part D - Damage to Your Auto

Which of the following statements is TRUE regarding auto Physical Damage coverage in a Personal Auto Policy? ( )Provides for actual cash value (ACV) settlement or the amount needed to repair or replace the property, whichever is less ( )Excludes physical damage to cars over 10 years old ( )Can be endorsed to replacement cost basis ( )Applies only when the insured is at fault in an accident

Provides for actual cash value (ACV) settlement or the amount needed to repair or replace the property, whichever is less

John has just gotten an insurance policy for his home. He lied to the insurer about the property and its use. John has his business in the back half of his home that manufactures stained crosses. John's home/business burned down creating a total loss of his home and business. What would the insurer do if they discover that John lied on his insurance application? ( )Pay only for the loss of his home and not portion with business ( )Cover the loss, but cancel his policy ( )Nothing, they are bound to cover the loss ( )Refund his premiums and deny the claim

Refund his premiums and deny the claim

Automobile Medical Payments covers which of the following: ( )The insured in public transportation ( )The insured as an occupant of a car, an occupant of the insured vehicle, and the insured as a pedestrian when hit by a car ( )The insured in their friend's car ( )An occupant of the insured vehicle only

The insured as an occupant of a car, an occupant of the insured vehicle, and the insured as a pedestrian when hit by a car

Kevin was in an auto accident and totaled his car. Following the payment of Kevin's claim, the salvaged property becomes the property of: ( )A third party ( )The state ( )The insurer ( )The insured

The insurer

Part C of a Personal Auto Policy is for Uninsured Motorists. Which of the following is NOT a scenario that Part C of a policy would cover? ( )The negligent driver is a "hit and run" driver ( )The negligent driver has no liability insurance ( )The negligent driver is late on his premiums ( )The negligent driver's insurance denies the coverage

The negligent driver is late on his premiums

Vehicles that may be insured by a personal auto policy are described in the eligibility rules. Which of the following is FALSE about vehicles eligible for PAP coverage? ( )Vehicles used for farming or ranching are not eligible. ( )Vehicles with fewer than four wheels that are used for recreation are not eligible. ( )Vehicles owned by an individual or married couple may be insured. ( )Private passenger autos and pickup trucks may be insured.

Vehicles used for farming or ranching are not eligible.

John is leasing a Ford F150 pickup. He has a 3-year lease that he has signed. Can he insure this truck with his personal auto policy? ( )Yes, but only if he has had it for 6 months ( )No ( )Yes ( )Yes, but only if he has had it for 1 year

Yes

When traveling to another state, what is true about your liability coverage? ( )Your insurance will pay the state's minimum if it is higher than your policy. ( )Your policy must have an endorsement to cover other states. ( )Your liability coverage only applies to your home state. ( )Your insurance may not cover accidents in that state.

Your insurance will pay the states minimum if it is higher than your policy.