3) Personal Auto Policy (PAP)
In California, the liability for bodily injury or death to one person has a financial responsibility liability limit of
$15,000
Transportation expenses are covered under a PAP for
$20 a day, for a maximum of $600
What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement?
$25
An insured has an auto liability policy limit with 25/50/15. The insured is involved in an accident caused by her negligence and is held legally liable for bodily injuries of 3 people in the other auto as follows: "A" $15,000, "B" $30,000, and "C" $35,000. How much will her insurer pay in total for all injuries
$50,000
An insured hits a deer and crashes his car into a tree. The total damage to the vehicle is $6,000. How will this loss be covered?
$6,000 would be paid under the other-than-collision coverage
If person wants to include a newly-acquired auto in a policy that is already established for another vehicle, insurer must be notified within
14 days
In the split limit coverage in personal auto policies, which limit indicates the maximum amount the policy will pay for bodily injury per person?
1st limit
The insured owns and operates a ranch. The insured has several vehicles that are used in the ranching operation and for personal use. Which of the following could NOT be insured under a personal auto policy? A farm pickup with 1,000 pound capacity A station wagon that is used personally A two-ton grain truck with a 6,500 pound capacity A two-wheeled trailer designed to be towed by the station wagon
A two-ton grain truck with a 6,500 pound capacity A two-ton truck weighs 4,000 pounds. With ist cargo weight of 6,000 pounds, it exceeds the 10,000-pound gross vehicle weight (GVW) limit and would not be eligible. The GVW is the maximum recommended weight, including the weight of the vehicle, fuel and fluids, passengers, and all cargo.
The procedure that allows Certified Producers to submit applications to the California Automobile assigned Risk Plan and obtain immediate coverage is known as
Electronic Effective Date Procedure (EEDP).
bodily injury to any one person. An insured is involved in an auto accident in another state. The state has a financial responsibility law that specifies limits of liability higher than the limits shown in the declarations. What amount will the insured's policy pay?
Higher Limits
Extended nonowned coverage endorsement in a PAP broadens which of the following coverages?
Liability and medical payments
What is a common exclusion found in Part D: Coverage for Damage to your Auto of a PAP?
Mechanical breakdown
How many vehicles per person can be covered by the California low-cost auto insurance program?
No more than 2
While an insured was towing a utility trailer with his auto, the trailer accidentally came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store?
Property damage liability
What is considered the most important factor in determining the rates and premiums for an applicant for an auto policy?
The applicant's driving record
What type of coverage protects the insured in an accident caused by a driver with insufficient coverage?
Underinsured Motorist (UIM)
The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT a) A friend is injured while driving the insured's vehicle with permission. b) The insured is injured while exiting a friend's mobile home. c) The insured is injured by a motor vehicle while crossing the street. d) The insured's child sustains injuries when the car she is in accidentally rolls down a hill.
b) The insured is injured while exiting a friend's mobile home.
All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT a)Premiums on appeal bonds in any suit the insurer defends. b)Up to $250 for bail bonds required because of a covered accident. c)Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident. d)Up to $200 a day for loss of earnings due to attendance at hearings or trials.
c)Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident. A personal auto policy does not pay the cost of the release of a vehicle impounded by a law enforcement agency.