21. Personal Auto Policy: Chapter Exam

What would NOT be covered under a Personal Auto Policy (PAP), physical damage section, comprehensive coverage? a. theft of a portable radio left on the seat b. theft of the hood ornament c. theft of the radio mounted in the dash d. theft of the spare tire from the trunk

a. theft of a portable radio left on the seat

You have a Personal Auto Policy (PAP) with $50,000 bodily injury liability and $25,000 property damage liability limits. You borrow Sally's car and strike a pedestrian. Sally has $100,000 limit of bodily injury liability. How much will your insurer have to pay if a $95,000 judgment is rendered against you? a. $50,000 b. $0 c. $95,000 d. $47,500

b. $0

If Jim has $100,000 liability coverage under his Personal Auto Policy (PAP), how much would the insurer have to pay if the courts awarded a claimant $125,000, the costs of defense was $3,000, and Jim had to take two days off from his job, which cost him $200? a. $125,000 b. $103,200 c. $100,000 d. $128,200

b. $103,200

The insured has a Personal Auto Policy (PAP) with limits of $25,000 per person/$50,000 per occurrence for bodily injury. An accident in which three people were injured resulted in suits of $10,000, $22,000, and $28,000. What is the total amount that would be paid by the insurance company? a. $75,000 b. $50,000 c. $25,000 d. $60,000

b. $50,000

Under the Personal Auto Policy (PAP), what person would be EXCLUDED from coverage for bodily injury and property damage liability? a. named insured's spouse who resides in the same household as the insured b. employee of the named insured, while transporting passengers for a fee c. any person using the car with the permission of the insured d. any person legally responsible for the use of the automobile with the insured's permission

b. employee of the named insured, while transporting passengers for a fee

What would be covered without an endorsement under the Personal Auto Policy (PAP)? a. farm tractor b. neighbor's auto used to drive to and from work for a week while the insured's car is being repaired. c. motorcycle d. unlicensed trail bike

b. neighbor's auto used to drive to and from work for a week while the insured's car is being repaired.

Which of the following equipment would be covered under Part D in a Personal Auto Policy (PAP)? a. Custom speakers added after the auto was purchased. b. A new stereo system the insured received for father's day and installed into his car. c. A high end sound system installed by the auto manufacturer. d. A radar detector used to avoid speeding tickets.

c. A high end sound system installed by the auto manufacturer.

Which of the following vehicles does not meet the definition of a covered auto under a Personal Auto Policy (PAP)? a. A trailer owned by the insured which attaches to a covered auto b. A pickup truck leased by the insured for a year which is listed in the declarations c. A van used regularly by the insured but which is not listed in the policy declarations d. A temporary substitute auto that is not owned by the insured

c. A van used regularly by the insured but which is not listed in the policy declarations

Which of these coverages is not included in a standard Personal Auto Policy (PAP)? a. Damage to your auto b. Medical payment coverage c. Business auto coverage d. Liability insurance

c. Business auto coverage

The insured hits a bird while driving on the highway, cracking the vehicle's windshield, Which Personal Auto Policy (PAP) coverage would apply to this loss? a. Supplementary Payments b. Property Damage c. Other Than Collision (OTC) d. Collision

c. Other Than Collision (OTC)

Where are accidents covered under the Personal Auto Policy (PAP) definition of the Territory? a. Worldwide b. The United States or Canada only c. The United States, its territories and possessions, Canada, and Puerto Rico. d. The United States only

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

Under which of the following circumstances could an insurance provider cancel the insured's Personal Auto Policy (PAP)? a. The policy period is up, and the provider is not going to renew the policy. The provider has given the insured 10 days written notice. b. The insured has missed a premium payment, and the provider has given him 5 days written notice. c. The policy has been in force 60 days, and the regular operator of the vehicle has had his license revoked. d. The insured purchased the policy 90 days ago, and the insurance provider has given him 5 days written notice.

c. The policy has been in force 60 days, and the regular operator of the vehicle has had his license revoked.

Which of the following liability losses would be excluded by the Personal Auto Policy (PAP)? a. insured turns corner too sharply, scraping a neighbor's recently planted tree b. you are late for an appointment, run a stop sign, and hit another vehicle in the intersection c. insured runs over her son's bicycle while backing from the garage d. when visiting a friend, you pull into his drive and turn off the ignition, but fail to put the vehicle in park or to set the brake. Moments later your car rolls down the drive, across the street, and hits another car.

c. insured runs over her son's bicycle while backing from the garage

Y has a Personal Auto Policy (PAP) with split limits of 50/100/50. If Y causes loss, what is the maximum amount that each injured person may receive? a. $25,000 b. depends on the per person limit c. $100,000 d. $50,000

d. $50,000

The Personal Auto Policy (PAP) will cover the insured in any of the following territories in which they may drive automatically, EXCEPT: a. Any province of Canada. b. Puerto Rico c. Any of the 50 United States of America d. Mexico.

d. Mexico.

Mika has a Personal Auto Policy (PAP) and is involved in a car accident that was her fault, and in which her passenger Marcus was injured. Which of the following would be true? a. Mika's medical payments coverage would pay for Marcus's medical bill, his lost wages, and may pay for his pain and suffering. b. Mika's medical payments coverage would pay for Marcus's medical bills, and his lost wages due to the accident. c. Mika's medical payments coverage would not pay for Marcus's medical bills, because the accident was Mika's fault. d. Mika's medical payments coverage would pay for Marcus's medical bills only.

d. Mika's medical payments coverage would pay for Marcus's medical bills only.

Which of the following individuals would NOT be able to collect for bodily injury under Coverage B, Medical Payments in a Personal Auto Policy (PAP) owned by the described insureds? a. The daughter of an insured is hit and injured by a hit and run driver while crossing the street as a pedestrian. b. Two friends of the insured are in the back seat and injured when another car strikes the vehicle driven by the insured. c. The two children of the insured are in the back seat and injured when another car strikes the vehicle driven by the insured. d. The insured and her friend are power walking when an errant car comes over the curb to strike and injure the friend.

d. The insured and her friend are power walking when an errant car comes over the curb to strike and injure the friend.

Under the liability portion of a Personal Auto Policy (PAP), which of the following would not be an insured person? a. The insured's mother-in-law who is driving the insured to the hospital b. The insured's wife when she is using the car to drive to work .c The insured's friend who has borrowed his car with permission while he is away on vacation d. The insured's neighbor, who has borrowed the car without asking the insured

d. The insured's neighbor, who has borrowed the car without asking the insured

In a Personal Auto Policy (PAP), Part D-Damage to Your Covered Auto deductibles apply: a. once to each vehicle during the policy term. b. to other autos suffering body damage in an accident. c. twice during each policy period. d. separately to each physical damage loss.

d. separately to each physical damage loss.

Under the Personal Auto Policy (PAP), what vehicle is considered a "covered auto?" a. van being used in the insured's delivery truck business b. motorcycle c. unlicensed trail bike d. van being used to drive to work listed on the declarations page

d. van being used to drive to work listed on the declarations page