Chapter 6 exam
Under a Personal Auto policy, medical payments do not apply to passengers occupying which of the following?
A cargo van used in the course of employment by the insured's business
Policyholder J hit a deer with their Honda. J has collision coverage with a $250 deductible and other than collision coverage with a $50 deductible. The damage to J's car was $450. How much will the policy pay?
$400Collision with a bird/animal is covered by Other Than Collision coverage. The $50 deductible would apply.450-50=400
If an insured has a Personal Auto policy with collision coverage, transportation expenses incurred after a collision are covered, up to a total of:
$600 If the insured incurs transportation expenses after a covered accident that damages their auto, the policy will pay up to $20 a day, up to $600 total, for those expenses.
Under medical payments coverage provided by a Personal Auto policy, how long after an accident does the insured have coverage for resulting medical expenses?
3 years
The Personal Auto policy's definition of family member includes:
A person related to the named insured who is a resident of the household, including a foster child
Which private passenger auto is not eligible for coverage under a Personal Auto policy?
A van used to deliver shipments from a warehouse
An insured slips on an icy patch on the road and collides with a tree. The insured's Personal Auto policy will provide coverage as long as the insured:
Allows the insurer to inspect the damage before repairs
The Miscellaneous Type Vehicle Endorsement attached to a Personal Auto Policy allows eligibility of a motorcycle by:
Amending the definition of 'your covered auto' and 'newly acquired auto' to include any miscellaneous type vehicle
A Personal Auto policy is designed to cover:
An individual's or their family's personal use of an auto
Collision coverage under Part D of a Personal Auto policy would cover:
Damage to the insured auto after crashing into a light pole
Which of the following claims would be covered by collision coverage under Part D - Coverage for Damage to Your Auto of a Personal Auto policy?
Damage to the insured auto's bumper when the auto crashed into a tree Part D of the policy specifically stipulates certain causes of loss that are not considered collision. They include missiles or falling objects, fire, theft, explosion, windstorm, and contact with a bird or animal, among others. Collision with another vehicle or tree, or overturn of the vehicle, is covered by collision coverage.
Other than collision coverage provided under Part D of an insured's Personal Auto policy would cover losses to an insured vehicle caused by all of the following, except:
Driving into a tree
The limit of liability applying to medical payments coverage on a Personal Auto policy applies to:
Each person injured in any one accident The Part B - Medical Payments Coverage limit is a per person limit that applies to each accident.
Part B of a Personal Auto policy would pay for which of the following expenses?
Funeral service expenses incurred by an insured
Choose the false statement about a newly acquired additional vehicle under the PAP:
It may be used to transport goods for hire if receipts are less than $10,000
Which of the following is true about the Insuring Agreement of Part D under the Personal Auto Policy?
It states that the policy will pay for direct and accidental physical loss to the covered auto regardless of fault
Under Part F of the Personal Auto policy, the Legal Action Against Us provision states that:
Legal action may not be brought against the insurer until the insured has complied with all the terms of the policy
If an insured has comprehensive physical damage coverage provided by their Personal Auto policy, the insurer would deny which of the following physical damage claims?
Loss to the covered auto's tires caused by road damage
A bird hits and breaks the windshield of an insured vehicle. This is covered under which of the following coverages of a Personal Auto policy?
Other than collision coverage
Generally, which of the following vehicles is not eligible for coverage under a standard Personal Auto policy?
Pickup with gross vehicle weight of 12,000 lbs.
An insured with a Personal Auto policy on their car is using a non-owned auto to run errands. Under the insured's policy, liability coverage for use of the non-owned auto is:
Provided on an excess basis The insured's policy will provide excess coverage for the use of a non-owned auto, and it will only provide liability coverage when the auto owner's PAP has exhausted its liability limits. In other words, the car owner's coverage is primary, and the driver's coverage is excess.
The definition of bodily injury in the Personal Auto policy includes which of the following?
Sickness or disease\ Bodily injury is defined as bodily harm, sickness, or disease, including death that results from these. False arrest and defamation are examples of personal injury, which auto policies do not insure against.
When an auto has two Personal Auto policies with the same insurer, the insurer's liability would not exceed:
The highest limit of the two policies
When a Personal Auto policy includes Other Than Collision coverage, physical damage coverage will cover all of the following losses, except:
Theft of the insured's cell phone from the auto
Under a Personal Auto policy with no added endorsements, which vehicle would NOT be covered?
a motorcycle the insured owns
Liability coverage under a Personal Auto policy will cover which of the following vehicles?
a non owned gold cart Vehicles designed mainly for use off public roads are excluded, except for non-owned golf carts. A cargo van would qualify as a commercial vehicle and need Commercial Auto insurance.
M and C both have Personal Auto policies with liability limits of 20/30/10. If M borrows C's car and injures a pedestrian, causing injuries that will cost $5,000 to treat, which policy will provide coverage for the injured party?
c's policy
Physical damage to the insured auto that is not covered under collision, and is not otherwise excluded, would be covered under:
comprehensive The Other than Collision coverage, also known as Comprehensive, provides coverage for damages not caused by collision and not excluded in the exclusions.
J's Personal Auto policy includes other than collision coverage, but no collision coverage, with a $200 deductible. J's parked car rolls downhill and hits a tree, incurring $500 in damage to the car, $150 of which is from glass breakage. How much will J's insurer pay for the loss?
zero Without collision coverage, the accident is not covered under the policy. Hitting a tree is considered a collision, so the $350 loss caused only by the collision is not covered. Losses resulting from glass breakage can be covered by collision or OTC coverage, at the insured's option, but in this case, that $150 glass breakage loss is less than the deductible, so the insurer would not provide coverage.
