Personal Lines Insurance - Auto

The PAP collision deductible is $1000, and the other-than-collision deductible is $500. How much would the insurer pay for an accident involving the overturn of one vehicle, resulting in $2000 of damage?

$1000

Lee has a Personal Auto Policy with $250 deductible collision coverage and $100 deductible other-than-collision coverage. He runs a stop sign and hits another car. There is $1300 worth of damage to his (the insured) car. How would the insurer pay for the damage to Lee's car?

$1050.

Very often the deductible amount under the collision sections of a Personal Auto Policy are different. With this in mind, what would be the amount that an insurer would pay for a loss under the following circumstances: $500.00 deductible for other-than-collision, and $250.00 for collision losses- An accident occurs when an insured runs a red light and collides with another car, causing $1750.00 worth of damage to his vehicle.

$1500.00.

What is the limit per day for transportation expenses in an unendorsed Personal Auto Policy, in the event of theft, after it is reported and automobile is not returned within 48 hours of theft?

$20

What is the limit for sound reproducing equipment under the coverage endorsement for excess sound-reproducing equipment, audio, visual, and data electronics, tapes, records, disks, and other media endorsement in a PAP?

$200

Under California financial responsibility law, the minimum financial responsibility for accidents that involve several people injured in one accident is:

$30,000

What would an insurer likely pay if the following were the details surrounding an accident for which the insured was at fault and had bodily injury policy limits of $25,000 per person and $50,000 per occurrence?

$48,000

A PAP contains the following limitations, $30,000/person and $50,000/accident for bodily injury. An accident occurs that injures three people resulting in a number of lawsuits. The outcome of the lawsuits found the insured to be liable and responsible for the following damages: $10,000 for the first person, $13,000 for the second person, and $35,000 for the third person. What will the policy pay?

$50,000

Calculate the amount the insurer would pay, under a PAP, for a loss in the following circumstances, with the following coverage limit. Collision coverage-- $500 deductible and Other-than collision coverage-- $50 deductible. Damage to the insured's vehicle-- $1,050 after the insured misses a stop-sign and hits another vehicle.

$550

Car "A" is in an accident with car "B". "A" suffers $10000 of damage, but it is determined that "A" is 25% responsible for the accident. How much would "A" receive under comparative negligence rules?

$7500

An insured has a Personal Auto Policy and did not pay the initial insurance premium when it was due. Insurer cancels the policy for non-payment. How many days notice must the insurer give?

10 days

The limited Mexico endorsement applies to trips to Mexico with duration of

10 days or less.

What is the minimum number of days that an insurer must give an insured, prior to canceling a policy for non-payment?

10 days.

What is the minimum discount percentage for the "good driver" discount?

20%

Under a personal auto policy. If a newly acquired auto is to replace the covered auto with liability coverage only, how long does the insured have to request collision coverage?

4 days.

A Personal Auto Policy will cover all of the following types of losses, EXCEPT:

A "palm-top" computer, personally owned by the insured , is stolen from the insured's car while it is parked in her driveway at home.

Of the following loss scenarios, identify the one that is excluded from coverage under both the collision and other-than-collision coverage of an insured's PAP:

A palm-pilot computer (owned by the insured) is stolen from the vehicle while pared in the insured's driveway. There are forcible signs of entry into the vehicle.

All of the following vehicles are eligible for coverage under a Personal Auto Policy, EXCEPT:

A private passenger auto owned by a partnership.

Which of the following is not an uninsured motor vehicle as defined by personal auto policies uninsured motorist coverage?

A vehicle owned by a state agency which self-insures its auto.

All of the following are considered an uninsured motor vehicle, according to policy-definitions found in a Personal Auto Policy, EXCEPT:

A vehicle that is self-insured because it is owned by a state agency.

The limit of liability under a Personal Auto Policy under the section "coverage for damage to your automobile" is typically the lesser of the dollar amount needed to replace or repair the damaged property or the__________ of the damaged property. From the following choices, fill in the blank with the correct answer.

Actual Cash Value (AVC) or fair market value.

The limit of liability in a Personal Auto Policy providing coverage for "damage to your automobile" is stated as "the lesser of the amount necessary to replace or repair the damaged property (vehicle) or the ________."(Fill in the blank from the choice below.)

Actual cash value of the damaged or stolen property.

The Personal Auto Policy "coverage for damage to your own automobile" states that the limit of liability is the lesser of the amount necessary to repair the property or the:

Actual cash value of the stolen or damaged property.

If an insured rents a vehicle while on vacation in the U.S., what coverage is provide under the Personal Auto Policy?

All coverage is in force in the Personal Auto Policy.

What coverage is available under the miscellaneous type vehicle endorsement?

All coverage under the Personal Auto Policy.

After a collision loss, the Personal Auto Policy requires the insured to:

Allow the company to inspect the damaged property before it is repaired.

Which of the following events within the last three years would disqualify an individual from receiving a good driver discount?

An at-fault accident involving minor bodily injury.

Under a Personal Auto Policy, who qualifies as an insured while using a covered auto?

Any person.

If an insured requests coverage in a timely manner for a newly acquired auto under an existing Personal Auto Policy, what coverage is provided before the request is made?

Broadest coverage for any vehicle shown on the declarations.

If an insured with a Personal Auto Policy has an accident in a state with personal injury protection (PIP), how does the policy respond?

Coverage automatically is broadened to provide PIP.

Damage which is the result of a hailstorm, is covered in which of the following ways under a Personal Auto Policy?

Covered as an other-than-collision loss.

How would the damage resulting from hail be covered under a Personal Auto Policy?

Covered as other than-collision loss.

A car is insured using a Personal Auto Policy. The car is damaged by hail. The loss is :

Covered as other-than-collision loss.

The collision coverage of a Personal Auto Policy covers:

Damage caused by the insured, driving into a fallen tree, that fell during a storm.

Which of the following losses is not covered by either the Personal Auto Policy collision or other-than-collision coverage?

David leaves his personal (non-business) laptop computer in his car overnight. Car is parked in the driveway outside of his home. Computer is stolen from his car.

Jackie's personal auto policy(which is unendorsed) would provide payment for which of the following?

Expense of repairing a neighbor's wall, surrounding a garden, that Jackie accidentally backed through.

When does a Personal Auto Policy require the insured to notify the police?

For hit & run accidents and thefts.

Damage done by an earthquake to an insured is covered by the Personal Auto Policy:

If the other-than-collision coverage is purchased.

The best definition of the term "collision", as found in a Personal Auto Policy, is which of the following?

Impact with other vehicle or object; or upset of the insured vehicle.

There is exclusion in automobile insurance issued by admitted insurers in California regarding coverage in Mexico, which can only be provided through an endorsement to a PAP. Which is true regarding this?

It is liability coverage, on an excess basis, provided for losses that occur in Mexico, within 25-miles of the California/Mexico International border.

Kim's car is insured with a Personal Auto Policy. The coverage includes medical payments with $2000 limits. Which of the following is a true statement about the medical payment coverage for necessary medical expenses?

Kim gives her neighbor a ride to the store in the insured car. She has an auto accident in which they each incur over $2000 in medical expenses. The maximum amount that Kim's policy will pay is $2000 to her and $2000 to her neighbor.

The collision coverage of a Personal Auto Policy does not cover the following loss situations, EXCEPT

Large limbs and branches of a tree that have fallen into the street as a result of a windstorm. The insured collides with them.

What coverage is available under the extended non-owned liability coverage?

Liability and medical payments.

Max's Personal Auto Policy (PAP) has liability and collision coverage. His neighbor's car has liability coverage only. Max borrows his neighbor's car to go to the store and has an accident that is his fault. He damages his neighbor's car and another car. Max's PAP provides:

Liability coverage that is excess of his neighbor's liability coverage. His collision coverage also applies, but on a primary basis.

Which of the following coverages may you buy with a named non-owner liability policy? (the most complete answer.)

Liability, medical payments, and uninsured motorist.

Which of the following coverages may you buy with a named operator policy?

Liability, uninsured motorist, medical payments, collision, and other-than-collision.

To be covered for a hit and run accident under the Uninsured Motorist Property Damage coverage of a PAP, what is required to be provided to the insurer?

License number of the hit and run vehicle.

A Personal Auto Policy is written for Lisa providing liability coverage. Which of the following auto liability situations would not be covered unless Lisa has an endorsement attached and paid an additional premium?

Lisa destroys a mailbox while driving a (non-owned) company car furnished for Lisa's regular use.

Which of the following may be covered under the Physical Damage insuring agreement of a Personal Auto Policy?

Loss of a CD player installed in the vehicle dashboard.

If a motor home is scheduled on a miscellaneous type of vehicle endorsement, all of the following property is covered, EXCEPT:

Luggage.

A private passenger vehicle is added to an insurance policy. According to CA Insurance Code:

Makes no mention of a vehicle inspection requirement.

If an insured purchases an all-terrain vehicle (ATV), what endorsement can be added to the Personal Auto Policy to insure the vehicle?

Miscellaneous type vehicle endorsement.

What endorsement can be used to insure a motorcycle under a Personal Auto Policy?

Miscellaneous type vehicle endorsement.

The Personal Auto Policy territory include:

Montreal, Canada.

If an individual does not own an auto, nor have regular use of an auto, what endorsement to a Personal Auto Policy could be used to properly protect that individual?

Named non-owned coverage.

Jim, your unmarried homeowner's insured does not own his car. He is planning a vacation trip to Florida and will be renting a car. He also drives cars belonging to friends occasionally. To protect Jim in theses situation, you would recommend a personal auto policy with a

Named non-owner coverage endorsement.

What kind of coverage would you recommend to one of your insureds who is single and does not own a car, but, she does, on occasion, drive cars that belong to her friends. Additionally, she is planning a vacation to Florida and will be renting a car while there.

Named non-owner coverage endorsement.

Under an unendorsed Personal Auto Policy, what coverage is available for personal effects?

None of the above. All personal property in the auto up to $500. Luggage and clothing up to $500. Luggage up to $200.

Which of the following would be covered by the physical damage section of a Personal Auto Policy?

None of these are covered. Theft of an insured's portable CD player which has taken after a window was smashed. Passengers in the vehicle who are injured in a covered accident. Mechanical breakdown, but only if regular maintenance records can be provided.

All of the following are principal rating factors under Proposition 103 for personal auto policies, EXCEPT:

Number of listed drivers.

An insured living in California has the following coverages under a PAP: liability, medical payments, and loss other-than-collision. The individual's vehicle is stolen from her driveway and then totally wrecked. Which of the following covers this loss?

Other-than-collision coverage.

A Personal Auto Policy (PAP) insured's car was a total loss when the car was stolen and wrecked. The insured has the following coverages: liability, medical payments, and other-than-collision. Her PAP:

Other-than-collision will pay for the loss.

State of California DOI minimums for liability coverage are $15,000/$30,000/$5,000. An insured has an accident out of state that has higher financial responsibility limits than California. Which statement is true?

Policy automatically provides the higher necessary limits without an extra premium.

All of the following expenses are covered, in addition to the limits of liability, under Coverage A of a Personal Auto Policy, EXCEPT:

Pre-judgment interest.

What is the requirement and what is provided, under the Mexico coverage endorsement to a PAP in California?

Provides liability coverage (excess) for any accident in Mexico within 25 miles of US border.

In the event of recovery of stolen property, which of the following is an insurer's option when making a settlement with the insured under a Personal Auto Policy?

Return stolen property to the address shown in the policy.

What is one of the principle rating factors under Proposition 103 allowed for personal auto policies?

Safety driving record.

Which of the losses listed would be covered under Dick's Personal Auto Policy other-than-collision?

Someone shoots Dick's car rear window while the care is parked on the street overnight.

You are the agent for an insured that carries both a Homeowners Policy and a Personal Auto Policy (PAP) with you, through the same insurance carrier. The insured is driving home (in the auto you have insured) after purchasing a brand new big-screen TV, VCR, stereo, and CD/DVD player all-in-one unit. He collides with a parked car and destroys the new TV. How would this loss be covered?

The Homeowners Policy-personal property coverage.

If an insured under a Personal Auto Policy leaves a covered at an auto dealer for repairs, and the auto is involved in an accident while being test driven by an employee of the dealer, how will the Personal Auto Policy respond to a liability claims?

The Personal Auto Policy is excess.

In a reference to the coverages provided in the basic form, the Boat Owners Policy is similar to what other policy?

The Personal Auto Policy.

If an insured rents an auto while on vacation, what coverage, if any, will be available for physical damage coverage under a Personal Auto Policy?

The broadest coverage on any auto shown in the declarations.

A Personal Auto Policy contains the state required liability, medical payment coverage and as other-than-collision coverage. How would a claim be paid if there were a loss after an insured vehicle is stolen and then wrecked?

The claim would be paid under "other-than-collision" coverage.

The Personal Auto Policy towing and labor endorsement pays for:

The cost of labor only if the labor is performed at the place of disablement.

Steven's (unendorsed) Personal Auto Policy liability coverage would pay for:

The cost of repairing the neighbor's fence that Steven damaged due to the negligent operation of his car.

Which of the following is the only reason that an insurer can cancel an automobile insurance policy?

The driver's license of the individual who usually operates the vehicle that is insured by the policy and who is insured by the policy has had his license suspended temporarily.

An automobile insurance company is permitted to cancel a Personal Auto Policy for which reasons listed below?

The insured driver's license is suspended. This is the person that normally drives.

Your insured has a Personal Auto Policy that provides medical payments coverage of $2,000. Of the following statements, which is true regarding the amount payable under this section of the policy?

The insured is car-pooling to work with her neighbor when they are in an accident. Both are injured and incur almost $3,000 each in medical expenses. The insured and her neighbor would each be paid $2,000 from the policy.

An endorsement and an extra premium would be required for which of the following liability losses under a Personal Auto Policy?

The insured regularly uses, at the permission of his employer, a company owned car, and has an accident with the vehicle.

Which of the following is a true statement about CAARP?

The minimum liability for CAARP policies are $15000/$30000/$5000.

A single person does not own or lease an automobile. She occasionally drives her housemate's vehicle on an emergency basis. She is going on vacation and will have to rent a car. To obtain full automobile insurance coverage when this occurs, what should she purchase?

The named non-owner coverage endorsement.

If an insured borrows a neighbor's vehicle to run a personal errand, how do the policies respond in the event of an auto accident?

The neighbor's policy is primary and the driver's policy is excess.

All of the following factors can be used, according to the Insurance Code in California, to determine auto insurance policy rates. In addition to any other factors, the insurance Commissioner is allowed to adopt and include regulation:

The number of miles driven annually by the insured. The driving safety record of the insured.

What is the difference between per accident limit in a split limits policy and the single limits?

The per accident limit applies only to bodily injuries, and the single limit applies to all claims.

Under the liability portion of an unendorsed personal auto policy, what coverage is available if the named insured is operating a company car a regular basis?

The policy excludes this usage.

California has lower financial responsibility limits than most other states. If Randy, a California Personal Auto Policy insured, carrying minimum limits on coverage, has an accident in a state that requires higher limits then:

The policy will automatically provide the higher limits-at no extra charge.

An insured's vehicle is stolen. The insured rents a replacement vehicle for two months until her auto is repaired by the insurer. Will her Personal Auto Policy pay for the cost of the rental, and if so How?

The policy will pay all needed expense the insured incurs for the rental car up to the stated limits found in the policy.

Unendorsed Personal Auto Policy would cover which of the following under the liability coverage part?

The repair expenses that are needed to fix the damage to a neighbor's fence that was the result the insured negligently driving through it while driving unsafely.

When an automobile insurance policy is canceled at the request of the insured, and the insurance company keeps all earned premiums, in addition to an amount to pay for overhead expenses incurred by the insurer, it is referred to as what type of cancellation?

The short rate type of cancellation.

Newly acquired motorcycles are not automatically covered under a Personal Auto Policy (PAP) because:

The unendorsed policy does not cover two-wheeled vehicles.

Other-than-collision coverage of a Personal Auto Policy covers which of the following types of losses?

The windshield of the vehicle is damaged while left overnight on a city street within 5 miles of the insured's residence.

"Other-than-collision" coverage of a Personal Auto Policy includes which of the following types of losses?

Theft of any of these would be covered.

Under an unendorsed Personal Auto Policy, transportation expense coverage applies to:

Theft only losses.

In addition to paying legal damages, but without deducting payments from the policy's limits, which of these would be covered in a Personal Auto Policy?

These are all covered in addition to the limits states in the policy contract.

Why is a newly acquired motorcycle not automatically covered under the terms and conditions of a Personal Auto Policy?

These types of vehicles (motorcycles and other types of non-automobiles) are not covered under a Personal Auto Policy that is unendorsed.

Your insured client has an auto policy with liability and collision coverages. The insured experiences an at-fault accident the first time he uses the neighbor's truck which has liability coverage only. His PAP provides coverage and will pay for the entire loss since he was driving the truck:

This is not how the insurer would handle this claim.

The territorial limits of a personal auto policy includes which of the following?

Toronto, Canada

Under a Personal Auto Policy, how would the damage sustained to an insured vehicle from the insured smashing into a large fallen tree that had come down several hours earlier as the result of a lightning strike be covered?

Under the collision section of the policy.

Under a Personal Auto Policy (PAP), how would the damage sustained to an insured vehicle as the result of an earthquake be covered?

Under the other-than-collision section of the policy.

Of the following choices, which is correct regarding why a motorcycle is not automatically covered under a Personal Auto Policy?

Unendorsed Personal Auto Policy does not automatically cover two-wheeled vehicles.

Which of the following cities would fall within the policy territory limits of a PAP issued by an insurer in the State of California?

Vancouver, Canada.

Livery conveyance is best described as a:

Vehicle for hire to transport people.

Which of these is not included in the definition of an "uninsured motor vehicle" in a Personal Auto Policy?

Vehicles that are owned by an agency of the State that self-insures the vehicle.

An individual is driving home from the store with a new 48-inch flat screen TV. An accident occurs and the TV is destroyed. The driver carries a Homeowners Policy(HO) as well as a Personal Auto Policy (PAP). Will the damaged TV be covered? If yes, How?

Yes, under the personal property part of his policy.