AZ Auto
A vehicle rolled over while exiting the interstate. The insured carries collision coverage with a $1,000 deductible and other than collision coverage with a $500 deductible. The damage to the vehicle is $2,000. What amount is the insurer responsible to pay?
$1,000.
Jerry's car is involved in an accident that has left him without a vehicle to drive. How much, if any, can he collect for his transportation expenses under Part D of his policy?
$20 per day after a 24 hour waiting period.
Which of the following would NOT be a limit of the Towing and Labor Coverage endorsement?
$20.
Part B of the Personal Automobile policy provides coverage, regardless of fault, for necessary medical and funeral expenses incurred within how many years of the date of the injury?
3
A standardized Personal Automobile policy contains all of the following sections/parts, EXCEPT:
A common Conditions section applying to all coverage parts.
Which of the following losses would be covered by Part D of a standard Personal Auto policy providing both "Other Than Collision" (Comprehensive) and "Collision" coverage?
A front tire blows out in a high-speed head-on collision, which also causes extensive damage to the vehicle.
Which of the following is NOT an uninsured vehicle as defined by Part C of the personal automobile policy?
A vehicle owned or operated by a governmental unit or agency.
Uninsured Motorist (UM) coverage claims are:
First-party claims.
The Part B - Medical Payments coverage of Dorinda's personal automobile policy has a limit of $5,000. Three of Dorinda's friends were injured in an accident that occurred while they were riding in Dorinda's car. The amount of medical expenses per person were as follows:Harvey - $1,500Diane - $4,575Thomas - $6,250
Harvey would receive $1,500, Diane would receive $4,575, and Thomas would receive $5,000.
Which of the following injuries would be covered under Part A of the Personal Auto policy?
Injuries to a pedestrian struck by the insured while driving the covered auto.
Physical damage coverage to an insured's car is covered by which of the following insuring agreements of the Personal Auto policy?
Part D.
Which of the following coverages of a Personal Automobile policy provides "Collision" and "Other Than Collision" coverage?
Part D.
Under Part A of a Personal Automobile policy, "supplementary payments" refer to which of the following?
Payment of defense and other expenses by the insurance company beyond the limits of liability.
Roger accidentally hits a tree in his owned vehicle and it is a total loss. His car was three years old and in pristine condition with an actual cash value of $12,250. To replace the car with a new one of the same make and model, it would cost $19,400. To purchase a used car of the same make and model that is also 3 years old with similar mileage, it would cost $11,200. Disregarding any deductible, how would Roger's claim be settled under Part D of his standard Personal Auto policy?
Roger will receive a check for $11,200 to purchase a used car of like kind and quality to the vehicle that was wrecked.
Bruce works for Better Burger, Inc. As part of his compensation package, he is supplied with a company vehicle which he is allowed to take home each evening. Bruce wants to make sure that the liability coverage under his personal auto policy covers him while driving the company car. What endorsement should Bruce have added to his policy?
The Extended Nonowned Liability Coverage endorsement.
Which of the following is the policy territory as described in the standard Personal Automobile policy?
The United States, its territories and possessions, Puerto Rico and Canada.
Jim and Tina are a married couple that enjoy the outdoors. They have their motor home and pick-up truck covered by a standard Personal Automobile policy and both vehicles are listed on the declarations page of the policy. They attend a Camping & RV show on May 1st and purchase a small camper to use when camping near their home that summer. Jim calls the insurance agent on May 10th and adds the camper to the policy. On May 24th, Jim and Tina are pulling their new camper with their pick-up truck on their way to a nearby camp site. Jim is driving and turns a tight corner, clipping a street lamp with the side of the camper. How will Jim and Tina's Personal Auto policy cover the body damage to their camper?
The body damage will be covered by Part D of the policy because Jim reported the new camper to the insurance agent within the required 14 days.
The attachment of the "Miscellaneous Type Vehicle" endorsement to a Personal Automobile policy amends:
The definitions of "your covered auto" and "the insured".
Which of the following is TRUE regarding nuclear energy loss coverage under a Personal Automobile policy?
The personal automobile policy will not provide coverage for bodily injury or property damage caused by the insured's nuclear energy losses.
Under the Limited Mexico coverage endorsement for auto insurance, losses are covered as long as they occur:
Within 25 miles of the U.S. border.
An insured with auto limits of 10/20/10 causes bodily injuries to a third party with damages awarded of $8,000. After losing in court he has defense costs of $5,000. What is the insurance company's responsibility to pay?
$13,000
Parmelia is covered under two separate standardized Personal Automobile policies, with Part C limits under both policies set at $200,000. Parmelia is involved in an accident with an uninsured motorist and she sustains bodily injury damages for $262,320. How much will Parmelia receive when she submits a claim for these damages?
$200,000.
What is the maximum amount payable for bail bonds under the "supplementary payments" provided by Part A of the Personal Auto policy?
$250
Which of the following would be considered a Part D - Other Than Collision claim under a Personal Automobile claim?
A load of bricks falling from an apartment building onto the car.
All of the following would be considered "uninsured motorists", EXCEPT:
A motorist driving with coverage up to the required state financial responsibility limits for liability, but not high enough to pay the claims for an at-fault accident.
Which of the following could be considered "your covered auto" under a standard Personal Auto policy?
A newly acquired car reported to the insurer.
Which of the following would be excluded under Part A of the Personal Auto policy?
A person transports people from the airport to nearby hotels for a fee.
After a standard Personal Automobile policy has been in effect for more than 60 days, the insurer may cancel the policy for all of the following reasons, EXCEPT:
A regular operator of the vehicle has received a citation for speeding.
Which of the following vehicles is considered "your covered auto" under a standardized Personal Auto policy?
A replacement car purchased by the insured a week ago, but not yet reported to the insurance company.
The Personal Automobile policy considers all of the following "insureds", EXCEPT:
Anyone using the insured's car.
Personal Automobile policies use which of the following alternative dispute methods when the insured and the insurance company cannot agree on the amount to be paid by the uninsured or underinsured motorist coverage?
Arbitration.
Part F of the standard Personal Automobile policy states that the policy can be terminated within the first 60 days for any reason other than non-payment of premium if:
At least 20-days' notice is provided to the insured.
Lindsay is covered under a standard, unendorsed Personal Auto policy. He has an external hard drive connected to the manufacturer-installed stereo system of the car, with thousands of digital music files stored there. The vehicle is broken into and the hard drive is stolen. How will the insurance company handle the claim for the hard drive?
Deny the claim in full because this loss is excluded by Part D of the policy.
Angie has suffered an automobile physical damage loss. All of the following are the insured's duties after a loss under Angie's Personal Automobile policy, EXCEPT:
Facilitate the repairs to the vehicle and submit the invoice to the insurer.
All of the following statements are TRUE regarding the endorsement to the Personal Automobile policy for "Sound Receiving and Transmitting Equipment", EXCEPT:
For coverage to apply under the endorsement, the equipment must be installed in the area indicated by the manufacturer.
Gavin, the named insured under a Personal Auto policy, his daughter Tabitha, and two of her friends are riding in the covered auto when Gavin accidentally runs a stop sign, striking another vehicle. Everyone in Gavin's vehicle was injured as well as the driver and two passengers in the other car. Who would be covered for their injuries under Part B of Gavin's policy?
Gavin, Tabitha, and Tabitha's friends.
Generally, losses that are covered under the "collision" coverage of a Personal Automobile policy are NOT covered under the "other than collision" coverage. Which of the following would be an exception to this general rule, allowing a claim to be paid under EITHER coverage?
Glass breakage that is due to an upset or rollover of a covered auto.
Pete is covered under a Personal Auto policy with Indemnify Insurance when his car is stolen. Six months pass, Pete's car is never found and the policy period with Indemnify expires. Pete decides to purchase another Personal Auto policy with Fiduciary Insurance, Inc. Pete is covered under the policy with Fiduciary for about three months, when his stolen automobile is found with only minor physical damage. How will this claim be handled?
Indemnify Insurance will pay the claim.
All of the following would be covered under Part B - Medical Payments of the Personal Auto policy, EXCEPT:
Injuries sustained by an elderly man riding in the insured vehicle after having paid the insured to take him to the grocery store.
Which of the following statements is TRUE concerning the Part D coverage of a standardized Personal Auto policy?
It can cover owned and nonowned automobiles.
Which of the following is TRUE regarding the Towing and Labor Cost endorsement to a personal auto policy?
It covers mechanic's charges for work performed at the scene of a breakdown.
Charles' wife Mary has a company car furnished to her through her job. One day, Charles runs out of the wax he is using to polish his boat and he decides to go out to the store and get more. Mary's company car is parked behind Charles' car in the driveway, so he grabs Mary's keys and drives her car to the store. On the way back home, Charles has an accident in which he is at fault, and bodily injury and property damage are the result. Which of the following statements is TRUE regarding how this claim will be settled?
Mary's company policy will pay first, and Charles' policy will also pay, but on an excess basis.
Which of the following coverages is included as "no-fault" coverage on the standardized Personal Auto policy?
Medical Payments and Physical Damage.
An insured owns a motorcycle and a motor home. What endorsement can be added to the Personal Auto policy to provide coverage?
Miscellaneous Type Vehicle endorsement.
Rick lives in a major metropolitan city and does not own a car because he takes public transportation. However, when Rick leaves the city to visit his friend Bob, he often drives Bob's car. Rick feels he should have some type of liability insurance to provide coverage when he is driving. Rick should purchase:
Named Nonowner coverage.
David has received a cancellation notice in the mail for the standard Personal Automobile policy he purchased 10 days ago. The notice informs David that his policy will be cancelled 10-days from the date the notice was mailed. Which of the following is the most likely reason his policy was cancelled?
Non-payment of premium.
Spencer is covered under a standard Personal Automobile policy with a policy inception date of October 15th. Additionally, the policy will expire on October 15th of the current year. Spencer contacts his agent on October 7th and asks to have an new endorsement added to his policy. The agent agrees, adds the coverage the same day, and informs Spencer that there will be an additional premium of $20 per month charged. When will the adjustment of premium be effective for Spencer?
October 7th.
The Part A - Liability section of the Personal Auto policy will cover all of the following, EXCEPT:
Only the damages to the insured's automobile in the accident.
The following types of automobile ownership are eligible for a Personal Auto policy, EXCEPT:
Owned jointly by persons who are unrelated whether or not they live together.
Coverage C - Uninsured Motorist of a standard, unendorsed Personal Automobile policy would provide coverage for all of the following, EXCEPT:
Property damage sustained by the insured vehicle caused by an uninsured vehicle.
The limited coverage for Mexico endorsement to the personal auto policy:
Provides coverage for accidents that occur in Mexico within 25 miles of the United States border.
Under Ben Green's personal auto policy, each of the following would qualify as a "family member" EXCEPT:
Susan Green, Ben's wife. Susan maintains a separate residence although she and Ben are not divorced.
Bill Mathews works for a company that has provided him with a company car. He is permitted to use the vehicle for personal use. To be properly covered, what coverage should his agent add to his personal auto policy?
The Extended Nonowned Liability Coverage endorsement.
Under a Personal Automobile policy, when an insured is driving a non-owned "temporary substitute vehicle":
The policy of the entity providing the temporary substitute vehicle pays first, the insured's policy pays as excess.
Which of the following is TRUE regarding deductibles that pertain to Part D of the standardized Personal Automobile policy?
There are separate deductible amounts, chosen by the insured, for the "Collision" coverage and the "Other Than Collision" coverage.
Which of the following statements is NOT TRUE concerning Assigned Risk Plans?
These plans were created to randomly assign all auto policies written in a state to admitted insurers, to be sure all insurance companies can write a proportional amount of business.
