Chapter 7- Personal Auto Policy
Policyholder B has a PAP with limits of 100/300/50. In an accident for which B was liable, there were bodily injury claims in the amounts of $80,000, $100,000, and $125,000; and property damage claims of $20,000 and $35,000. How much will B's policy pay? A $280,000 for bodily injury and $50,000 for property damage B $300,000 for bodily injury and $50,000 for property damage C $305,000 for bodily injury and $55,000 for property damage D $305,000 for bodily injury and $50,000 for property damage
$280,000 for bodily injury and $50,000 for property damage
If an insured has a Personal Auto policy with collision coverage, transportation expenses incurred after a collision are covered, up to a total of: A $500 B $200 C $600 D $1,000
$600
When the Limited Mexico Coverage Endorsement is added to a Personal Auto policy, it provides coverage while the covered autos is how many miles into Mexico? A 25 miles B 50 miles C 100 miles D 10 miles
25 miles
A leased auto is eligible for coverage under a Personal Auto policy if the lease contract is for a continuous period of at least: A 12 months B 6 months C 3 months D 9 months
6 months
Personal Auto policies would consider which of the following autos to be a temporary substitute auto? A An auto furnished to the insured by their employer to use for work purposes B A new auto for which the insurer traded in their old auto C A loaner car provided to the insured by the dealership servicing the insured's auto D A friend's auto that was borrowed to pick up a new refrigerator that will not fit in the insured's car
A loaner car provided to the insured by the dealership servicing the insured's auto
Under a Personal Auto policy, which is covered under Part D - Coverage for Damage to Your Auto? A Custom painting on a van B Road damage to tires C Radar and laser detection devices D A newly acquired vehicle reported to the insurer 10 days after purchase
A newly acquired vehicle reported to the insurer 10 days after purchase
Under a Personal Auto policy, medical payments coverage is provided for which of the following? A A passenger while occupying a covered auto B The named insured while their auto is being used as a public or livery conveyance C A family member using a covered auto in a recognized racing activity D Any person while occupying a motorcycle
A passenger while occupying a covered auto
After an auto loss, the insured is required by their Personal Auto policy to do which of the following? A If the vehicle was stolen, contact the insurer for permission to report the theft to the police B Immediately initiate repairs to the vehicle to protect it from further damage C Give notice of the accident to the insurer within 20 days D Allow the insurer to inspect and appraise the damage before the auto is repaired
Allow the insurer to inspect and appraise the damage before the auto is repaired
An insured slips on an icy patch in the road and collides with a tree. The insured's Personal Auto policy will provide coverage as long as the insured: A Allows an inspection by the insurer after repairs have been completed B Allows the insurer to inspect the damage before repairs C Submits an independent appraisal to the insurer with the notice of the accident D Immediately initiates repair or disposal
Allows the insurer to inspect the damage before repairs
Under Part D - Coverage for Damage to Your Auto of the Personal Auto policy, vehicle upset would be covered under: A Comprehensive coverage B Other than collision coverage C Collision coverage D Transportation expenses coverage
Collision coverage
An insured has a Personal Auto policy. While their covered auto is being serviced, they use a non-owned auto as a temporary substitute. Which of the following is true if the insured is liable for bodily injury after an accident while using the temporary substitute? A The PAP does not provide coverage B Coverage is shared pro rata between the insured's policy and the policy on the vehicle C Coverage is provided under Part C D Coverage is provided on an excess basis
Coverage is provided on an excess basis
The limit of liability applying to medical payments coverage on a Personal Auto policy applies to: A All claims during the policy term B All persons injured in any one accident C Each person injured in any one accident D Each occurrence that results in bodily injury
Each person injured in any one accident
Under a Personal Auto policy, which of the following vehicle uses is not excluded by medical payments coverage? A Occupancy of the vehicle as a residence B Use for organized racing C Farm use D Use as a livery conveyance
Farm use
Part B of a Personal Auto policy would pay for which of the following expenses? A Funeral service expenses incurred by an insured B Cost of an ambulance after a third party is injured in an accident caused by an insured C Loss of income after an insured is slandered D An insured's pain and suffering
Funeral service expenses incurred by an insured
B has a Personal Auto policy to insure a sedan and pickup truck. The policy would consider which of the following people to be B's family member? A C, B's 30-year-old child, who lives and works in another state B K, B's 15-year-old foster child, who lives with B C T, B's cousin, who lives down the street and frequently uses B's auto D N, B's neighbor, who occasionally uses B's auto with permission
K, B's 15-year-old foster child, who lives with B
C insures two owned autos on a Personal Auto policy. The first auto has liability coverage, plus collision coverage under Part D. The second auto has liability coverage, plus comprehensive coverage under Part D. C decides to replace the first auto with a new auto. Without notifying the insurer, what coverage is automatically provided for C's newly acquired auto? A Liability coverage and collision coverage B Liability coverage only C Liability coverage and comprehensive coverage D No coverage is provided until the insurer is notified
Liability coverage only
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? A Loss to the covered auto's tires caused by road damage B Earthquake damage to the covered auto C Loss to sound reproduction equipment permanently installed in the covered auto D Loss to the covered auto's electronic ignition equipment
Loss to the covered auto's tires caused by road damage
Under a Personal Auto policy, which of the following vehicles is covered by liability coverage? A Uninsured owned vehicle B Company car C Motorcycle D Non-owned golf cart
Non-owned golf cart
Insureds who have collision and comprehensive coverage for a covered auto under Part D of their Personal Auto policy are subject to: A One deductible for collision losses and a separate deductible for comprehensive losses B A single deductible applicable to any loss under Part D C A deductible applicable only to losses covered by comprehensive coverage D A deductible applicable only to collision losses
One deductible for collision losses and a separate deductible for comprehensive losses
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? A Supplementary payments B Collision coverage C Liability coverage D Other Than Collision coverage
Other Than Collision coverage
All of the following are true of Part D - Coverage for Damage to Your Auto on a Personal Auto policy, except: A Collision coverage usually is written with a deductible B Part D covers damage to the insured auto and to another auto with which it collided C Damage to the insured auto after colliding with a deer would be covered under Other Than Collision coverage D Part D provides physical damage coverage for covered autos and non-owned autos used by an insured
Part D covers damage to the insured auto and to another auto with which it collided
After an auto accident, an at-fault driver, C, owes damages to Q for bodily injury. If the amount of damages owed to Q exceeds C's liability limits, Q's Personal Auto policy will: A Not provide coverage B Pay to the insured the remaining damages under underinsured motorists coverage C Provide excess liability coverage over the at-fault driver's policy D Apply its medical payments coverage to pay the remaining damages
Pay to the insured the remaining damages under underinsured motorists coverage
After an auto accident, an at-fault driver, C, owes damages to Q for bodily injury. If the amount of damages owed to Q exceeds C's liability limits, Q's Personal Auto policy will: A Provide excess liability coverage over the at-fault driver's policy B Not provide coverage C Pay to the insured the remaining damages under underinsured motorists coverage D Apply its medical payments coverage to pay the remaining damages
Pay to the insured the remaining damages under underinsured motorists coverage
Generally, which of the following vehicles is not eligible for coverage under a standard Personal Auto policy? A Pickup with gross vehicle weight of 12,000 lbs. B 5,000-pound van with custom furnishings C Automobile used to transport farming materials D SUV for an individual's personal use
Pickup with gross vehicle weight of 12,000 lbs.
Generally, which of the following vehicles is not eligible for coverage under a standard Personal Auto policy? A SUV for an individual's personal use B Pickup with gross vehicle weight of 12,000 lbs. C Automobile used to transport farming materials D 5,000-pound van with custom furnishings
Pickup with gross vehicle weight of 12,000 lbs.
A Personal Auto policy provides liability coverage and physical damage coverage for H's SUV. As defined by the policy, bodily injury includes which of the following? A Physical damage to tangible property B False arrest C Sickness or disease D Defamation of character
Sickness or disease
Under the PAP, which of the following is not considered occupying a vehicle? A Standing by the car exchanging insurance information B Getting out of the car C Slamming fingers in a closing door D Jumping off the hood
Standing by the car exchanging insurance information
A Personal Auto policy would consider all of the following to be examples of occupying a vehicle, except: A Standing by the car to see damage after an accident B Closing a car door C Climbing onto the roof of the car D Jumping off the trunk
Standing by the car to see damage after an accident
The policy territory of a Personal Auto policy is limited to which of the following? A Anywhere worldwide B The United States, its territories and possessions, Canada, and Puerto Rico C The United States and its territories and possessions only D The United States, Puerto Rico, and Mexico
The United States, its territories and possessions, Canada, and Puerto Rico
Under a Personal Auto policy, which statement about deductibles applying to coverage under Part D - Coverage for Damage to Your Auto is correct? A A lower deductible will lower premiums B The deductible applying to collision coverage is listed separately from the deductible applying to comprehensive coverage C In the event of a loss where both deductibles would apply, the insured must pay both deductibles D If Part D includes multiple deductibles, they must be for the same amount
The deductible applying to collision coverage is listed separately from the deductible applying to comprehensive coverage
When an auto has two Personal Auto policies with the same insurer, the insurer's liability would not exceed: A The highest limit of the two policies B The limit of the first one purchased C The limit of the last one purchased D The combined limit of the two policies
The highest limit of the two policies
Part C of a Personal Auto policy could protect the insured when an accident is caused by any of the following parties, except: A An underinsured motorist B An insolvent self-insurer C The insured D An unidentified hit-and-run driver
The insured
Under a Personal Auto policy, all of the following are correct about medical payments coverage, except: A Insured passengers must be occupying Your Covered Auto in order to be covered B The policy limit is applied on a per occurrence basis, not per person C Payments under Part B will not be duplicated if other parts of the policy also provide coverage D The named insured and family members are covered if injured as pedestrians
The policy limit is applied on a per occurrence basis, not per person
When a Personal Auto policy includes OTC coverage, physical damage coverage will cover all of the following losses, except: A Theft of the auto's catalytic converter B Theft of the insured's cell phone from the auto C Theft of a stereo permanently installed by the auto's manufacturer D Theft of the auto's battery
Theft of the insured's cell phone from the auto
An insurer has the right to do all of the following regarding a Personal Auto policy, except: A Comply with its policy obligations when the insured is insolvent B Deny coverage if an insured submits a fraudulent claim C Transfer its subrogation rights to the insured D Make premium changes if the number or use of insured vehicles changes
Transfer its subrogation rights to the insured
If an insured has a Personal Auto policy with collision coverage, transportation expenses incurred after a collision are covered, up to a total of: A $600 B $200 C $1,000 D $500
$600
Under a Personal Auto policy, which of the following will be paid by supplementary payments provided by Part A? A Medical expenses when the insured's daughter is injured in an auto accident B A judgment against the insured for damages related to a third party's bodily injury C $1,000 for loss of earnings when the insured is disabled D A $250 bail bond
A $250 bail bond
Part B - Medical Payments Coverage of a Personal Auto policy would cover medical expenses sustained by any insured while they occupy: A 3-wheel vehicle used off-road B A van used as a residence C A company car furnished to a family member D A car used to carpool with colleagues
A car used to carpool with colleagues
Part B - Medical Payments Coverage of a Personal Auto policy would cover medical expenses sustained by any insured while they occupy: A A car used to carpool with colleagues B 3-wheel vehicle used off-road C A van used as a residence D A company car furnished to a family member
A car used to carpool with colleagues
Physical damage to which of the following items is covered by an unendorsed Personal Auto policy? A Custom graphics B Disks and tapes C A pickup's bedliner D A radar speed gun
A pickup's bedliner
Which of the following vehicles could be considered an uninsured motor vehicle by a Personal Auto policy? A A company car furnished to the named insured's family member B An SUV covered by a bankrupt self-insurer C An ATV owned by the named insured D A bulldozer
An SUV covered by a bankrupt self-insurer
An insured accidentally backs into the neighbor's young child, who was riding by on a skateboard. The child has medical expenses, and there is damage to the skateboard. Which sections of the insured's Personal Auto policy will pay? A Bodily injury and collision B Personal injury and property damage C Medical payments and collision D Bodily injury and property damage
Bodily injury and property damage
An insured has a standard Personal Auto policy. When resulting from an accident with an at-fault uninsured motorist, damages owed to the insured for all of the following would be paid by the insured's uninsured motorist coverage, except: A Sickness B Property damage C Death D Bodily harm
Property damage
Under a Personal Auto policy, which statement about deductibles applying to coverage under Part D - Coverage for Damage to Your Auto is correct? A In the event of a loss where both deductibles would apply, the insured must pay both deductibles B If Part D includes multiple deductibles, they must be for the same amount C The deductible applying to collision coverage is listed separately from the deductible applying to comprehensive coverage D A lower deductible will lower premiums
The deductible applying to collision coverage is listed separately from the deductible applying to comprehensive coverage
Part C of a Personal Auto policy could protect the insured when an accident is caused by any of the following parties, except: A An insolvent self-insurer B An underinsured motorist C The insured D An unidentified hit-and-run driver
The insured
A pickup truck may be eligible for coverage under a Personal Auto policy even if it is used for any of the following incidental business purposes, except: A Transporting people for a fee B Transporting materials used for ranching C Transporting tools to a customer's home to repair an appliance D Delivering goods to install furnishings
Transporting people for a fee
S obtains motor vehicle liability and physical damage coverage for their pickup truck through a Personal Auto policy. S is injured when another motorist runs a red light and hits S's car, causing bodily injuries. Following the accident, how long does S have to submit a medical payments claim under Part B of their policy? A 1 year B Medical payments are only provided to others C 48 hours D 3 years
3 years
After unintentionally running a red light, L causes an accident with T. T's sedan is badly damaged, and T's arm is broken. A few months after the accident, T brings a suit against L, asking for damages for medical costs incurred for the broken arm and other injuries sustained in the accident. Under Part A of L's Personal Auto policy, supplementary payments in connection with the insurer's defense will: A Be paid as supplementary benefits only after the policy's liability limits are exhausted B Be paid in addition to the policy's liability limits C Reduce the policy's liability limits D Reduce the policy's supplementary payment limit
Be paid in addition to the policy's liability limits
N has a Personal Auto policy with liability coverage, medical payments coverage, and Other Than Collision coverage. Medical payments provided by the policy: A Are provided under Part A of the policy B Cover medical expenses incurred by N or another insured in an auto accident C Are paid only when N is legally liable for bodily injury in an auto accident D Include payments for injuries resulting from an auto race
Cover medical expenses incurred by N or another insured in an auto accident
Which of the following is not a supplementary payment provided by the liability coverage of a Personal Auto policy? A UP to $200 per day for the insured's lost earnings due to the trial B Medical payments for an occupant of an insured vehicle C Reasonable legal expenses incurred at the insurer's request D Up to $250 for the cost of bail bonds
Medical payments for an occupant of an insured vehicle
Coverage for recreational vehicles and motor homes can be added to a Personal Auto policy by the: A Joint Ownership Endorsement B Miscellaneous Type Vehicle Endorsement C Extended Non-owned Coverage Endorsement D Special Provisions Endorsement
Miscellaneous Type Vehicle Endorsement
Coverage for recreational vehicles and motor homes can be added to a Personal Auto policy by the: A Special Provisions Endorsement B Extended Non-owned Coverage Endorsement C Miscellaneous Type Vehicle Endorsement D Joint Ownership Endorsement
Miscellaneous Type Vehicle Endorsement
While driving in another state with higher liability coverage requirements, which of the following sections of a Personal Auto policy automatically provides the required coverage? A Other Insurance B Out of State Coverage C Any State Coverage D Automatic Extension of Coverage
Out of State Coverage
An insured with comprehensive coverage under Part D of their Personal Auto policy would be protected in the event of all of the following physical damage losses, except: A Overturn of the vehicle B Theft C Earthquake D Flood
Overturn of the vehicle
In the event a Personal Auto policy is to be terminated, which of the following provisions applies? A Insurers may only cancel a policy within the first 60 days of the policy's effective date B Proof of mailing a notice is considered sufficient proof that the insurer provided a termination notice C If the insurer chooses to nonrenew the policy, an oral notice is required D Any insured may cancel the policy anytime
Proof of mailing a notice is considered sufficient proof that the insurer provided a termination notice
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: A Provided on a primary basis B Shared pro rata between the insured's policy and the policy on the vehicle C Not provided because there is an exclusion for damage to property in the insured's care D Provided on an excess basis
Provided on an excess basis
All of the following are considered family members under a Personal Auto Policy, except: A The named insured's mother, who lives with the named insured B The named insured's brother, who is visiting from another state C The named insured's spouse D A child fostered by the named insured
The named insured's brother, who is visiting from another state
A Personal Auto policy's liability coverage would protect the insured in the event that: A The named insured backs into their own mailbox at the end of the driveway B A passenger in the insured's auto is hurt after another driver runs a red light C The named insured's resident family member injures someone in an accident while using a covered auto without the insured's permission D A neighbor loses control of their car and damages the insured's house
The named insured's resident family member injures someone in an accident while using a covered auto without the insured's permission
X is the named insured on a Personal Auto policy. After an uninsured motorist causes an accident, all of the following people could collect payments under Part C of X's Personal Auto policy, except: A The operator of the uninsured motor vehicle B X's spouse, who was operating X's auto C X, who was acting as a pedestrian when injured in the accident D A passenger in X's auto
The operator of the uninsured motor vehicle
X is the named insured on a Personal Auto policy. After an uninsured motorist causes an accident, all of the following people could collect payments under Part C of X's Personal Auto policy, except: A X, who was acting as a pedestrian when injured in the accident B A passenger in X's auto C The operator of the uninsured motor vehicle D X's spouse, who was operating X's auto
The operator of the uninsured motor vehicle
Q has a Personal Auto policy that insures a pickup truck for liability, medical payments, and uninsured motorists coverages, as well as collision coverage under Part D. Q buys a new auto and wants the same coverages to apply to the new auto. A week after the purchase, Q's auto is damaged by a covered collision, and Q remembers that the insurer had not been informed of the newly acquired auto. What coverage from Q's PAP would apply to this accident? A Only liability coverages under Parts A, B, and C would apply, but property damage coverages under Part D would not apply B No coverage would apply because no notice was provided to the insurer before the accident C The same coverages provided to the pickup truck already on the policy would apply to the newly acquired auto for this accident D The insurer would provide the same coverages already provided to the pickup truck, but payments for physical damage to the newly acquired auto would have a $500 deductible
The same coverages provided to the pickup truck already on the policy would apply to the newly acquired auto for this accident
Q has a Personal Auto policy that insures a pickup truck for liability, medical payments, and uninsured motorists coverages, as well as collision coverage under Part D. Q buys a new auto and wants the same coverages to apply to the new auto. A week after the purchase, Q's auto is damaged by a covered collision, and Q remembers that the insurer had not been informed of the newly acquired auto. What coverage from Q's PAP would apply to this accident? A The same coverages provided to the pickup truck already on the policy would apply to the newly acquired auto for this accident B Only liability coverages under Parts A, B, and C would apply, but property damage coverages under Part D would not apply C The insurer would provide the same coverages already provided to the pickup truck, but payments for physical damage to the newly acquired auto would have a $500 deductible D No coverage would apply because no notice was provided to the insurer before the accident
The same coverages provided to the pickup truck already on the policy would apply to the newly acquired auto for this accident
B is running errands. While crossing the street, they are struck by H's car, causing bodily injuries. When B brings a legal claim against H for damages, it is discovered that the insurer that issued H's Personal Auto policy went bankrupt and is unable to pay any claims. The amount B is owed in damages may be covered by: A Liability coverage under B's Personal Auto policy B Collision coverage under H's Personal Auto policy C Uninsured motorists coverage under H's Personal Auto policy D Uninsured motorists coverage under B's Personal Auto policy
Uninsured motorists coverage under B's Personal Auto policy
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? A $150 B Zero C $350 D $500
Zero
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? A $500 B $150 C $350 D Zero
Zero
Under a Personal Auto policy, medical payments do not apply to passengers occupying which of the following? A The insured's van that is being used for share-the-expense car pools B A non-owned temporary substitute auto used by the insured C A cargo van used in the course of employment by the insured's business D The insured's newly acquired vehicle
A cargo van used in the course of employment by the insured's business
Under a Personal Auto policy, Part A would provide coverage to all of the following people as insureds, except: A A nonresident relative using the named insured's auto with permission B A neighbor borrowing the auto to deliver food to a relative C A mechanic servicing the auto D The named insured's unlicensed child
A mechanic servicing the auto
Which of the following is not eligible for coverage under a Personal Auto policy? A A private passenger auto used as a taxicab B A van that is used to haul gardening supplies for personal use C A trailer being used as a farm wagon D A 9-passenger station wagon
A private passenger auto used as a taxicab
A Personal Auto policy would consider all of the following to be a covered auto, except: A A newly acquired auto that has not been reported to the insurer after it was purchased five days ago B An auto that is owned by the named insured, but not shown in the Declarations C An owned farm wagon being towed by a pickup truck D A non-owned auto being used to temporarily replace a covered auto that is being repaired
An auto that is owned by the named insured, but not shown in the Declarations
Liability coverage provided by a Personal Auto policy would cover which of the following damages? A Damage to a private garage rented to the insured, caused by the insured's child driving a covered auto B Damage to a neighbor's riding lawn mower that is in the care of the insured C Damage to a storefront caused by a valet driver operating a covered auto D Damage to property being transported by the insured in a covered auto
Damage to a private garage rented to the insured, caused by the insured's child driving a covered auto
J has a Personal Auto policy with liability limits of 50/100/25, a medical payments limit of $5,000, and comprehensive and collision deductibles of $500. J's vehicle slides on ice and hits a guardrail, causing $9,500 in damage to the vehicle and $11,000 damage to the guardrail. J also sustains $1,000 in injuries. How much will the policy pay for all damages? A $11,000 B $9,500 C $21,500 D $21,000
$21,000
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? A $150 B $200 C $400 D Nothing
$400
An insured, whose Personal Auto policy has 25/50/10 limits, is at-fault in a car accident. Claimant A has bodily injuries in the amount of $25,000. Claimant B has bodily injuries equaling $20,500. Claimant C has bodily injuries equaling $4,000. What is the insurer's liability for this accident? A $60,000 B $25,000 C $50,000 D $49,500
$49,500
Uninsured motorist coverage provided by a Personal Auto policy covers insureds while they occupy or use which of the following vehicles? A A vehicle being driven without permission B A covered vehicle owned by the named insured C A vehicle being used as a taxi D A vehicle being used to carry property for a fee
A covered vehicle owned by the named insured
Insureds under Part C - Uninsured Motorists Coverage of a Personal Auto policy include: A A family member occupying an uninsured auto owned by the named insured B A family member, occupying an insured auto struck by an uninsured vehicle C The operator of an uninsured motor vehicle who is at-fault in an accident with the insured D The owner of an uninsured motor vehicle involved in an accident with the insured
A family member, occupying an insured auto struck by an uninsured vehicle
Insureds under Part C - Uninsured Motorists Coverage of a Personal Auto policy include: A The operator of an uninsured motor vehicle who is at-fault in an accident with the insured B The owner of an uninsured motor vehicle involved in an accident with the insured C A family member, occupying an insured auto struck by an uninsured vehicle D A family member occupying an uninsured auto owned by the named insured
A family member, occupying an insured auto struck by an uninsured vehicle
Under a Personal Auto policy, Part A would provide coverage to all of the following people as insureds, except: A The named insured's unlicensed child B A nonresident relative using the named insured's auto with permission C A neighbor borrowing the auto to deliver food to a relative D A mechanic servicing the auto
A mechanic servicing the auto
Personal Auto policies exclude coverage under Part C - Uninsured Motorists Coverage for all of the following claims, except: A A neighbor is struck by an uninsured car while using the insured's covered auto with permission B The named insured is struck by an uninsured off-road vehicle C The named insured's resident spouse is struck by a government-owned car D The named insured's family member is struck by an uninsured car while using a covered auto as a public conveyance
A neighbor is struck by an uninsured car while using the insured's covered auto with permission
Under the Personal Auto policy, a family member is defined as which of the following? A A person who is a resident of a household and related by blood, marriage, or adoption B Any relative using the insured auto with the named insured's permission C A member of the named insured's or their spouse's immediate family, regardless of place of residence D A person related to the named insured who has frequent use of the insured auto
A person who is a resident of a household and related by blood, marriage, or adoption
A temporary substitute vehicle is not considered a Your Covered Auto if it is used to substitute for which of the following? A A trailer owned by the named insured's resident spouse B A rental car that broke down C A van recently purchased by the named insured D A private passenger auto shown in the Declarations
A rental car that broke down
Under an unendorsed Personal Auto policy, which of the following vehicles would not be considered Your Covered Auto? A A farm implement being towed by the named insured's pickup truck B A hatchback owned by the named insured and described on the Declarations page C A sedan furnished for the named insured's regular use D An non-owned SUV being used temporarily after the insured's auto was totaled in an accident
A sedan furnished for the named insured's regular use
Under Part A of a Personal Auto policy, which of the following is not an insured? A A foreign exchange student living with the insured for the school year B The resident teenage son of the insured who drives the vehicle without a license C A thief involved in a high-speed police chase D A spouse living in the same household
A thief involved in a high-speed police chase
Which of the following vehicles is not considered an uninsured motor vehicle under Part C of a Personal Auto policy? A A vehicle with liability insurance whose coverage is denied by its insurer B A vehicle insured for less than the state's minimum required liability coverage C A vehicle owned by the government D A vehicle that disappears after a collision and cannot be identified
A vehicle owned by the government
A standard Personal Auto policy considers all of the following to be uninsured motor vehicles, except: A A vehicle that is being used as a residence B A vehicle with no liability insurance coverage C A vehicle with insurance from an insurer that becomes insolvent D A hit-and-run vehicle whose owner or operator cannot be identified
A vehicle that is being used as a residence
Bodily injury sustained by an insured would be covered under Part B - Medical Payments Coverage of an unendorsed Personal Auto policy if the insured is occupying which vehicle? A A motorcycle B The named insured's company car C A vehicle used for car pools D A vehicle used as a residence
A vehicle used for car pools
After unintentionally running a red light, L causes an accident with T. T's sedan is badly damaged, and T's arm is broken. A few months after the accident, T brings a suit against L, asking for damages for medical costs incurred for the broken arm and other injuries sustained in the accident. Under Part A of L's Personal Auto policy, supplementary payments in connection with the insurer's defense will: A Reduce the policy's supplementary payment limit B Reduce the policy's liability limits C Be paid in addition to the policy's liability limits D Be paid as supplementary benefits only after the policy's liability limits are exhausted
Be paid in addition to the policy's liability limits
The Extended Non-Owned Coverage Endorsement available to Personal Auto policies should be added by an insured who is: A Towing a rented snowmobile B Being furnished a company car C Traveling to Mexico and renting a car there D Renting a motorcycle
Being furnished a company car
When an insured sustains bodily injury caused by an uninsured motorist, uninsured motorists coverage on a Personal Auto policy will pay: A Compensatory damages only B Compensatory and punitive damages only C Compensatory, punitive, and exemplary damages D Punitive and exemplary damages only
Compensatory damages only
When an insurer pays for a physical damage loss covered by Part D of a Personal Auto policy, all of the following are true, except: A The insurance company can decide whether to pay money or repair the vehicle B If the insurer returns a stolen car to the insured, it does not have to pay for damage that resulted from the theft C Claim payments made in cash will include any applicable sales tax D The insurance company can keep or return a stolen car
If the insurer returns a stolen car to the insured, it does not have to pay for damage that resulted from the theft
Under Part A - Liability Coverage of a Personal Auto policy, which of the following statements regarding the limit of liability is incorrect? A The limit of liability is the maximum the policy will pay regardless of the number of vehicles involved in the accident B A combined single limit is the maximum the policy will pay in any one accident for bodily injury and property damage C The limit of liability is the maximum the policy will pay regardless of the number of insureds D If the loss is covered under more than one part of the policy, payment will be duplicated
If the loss is covered under more than one part of the policy, payment will be duplicated
f an insured has comprehensive physical damage coverage provided by their Personal Auto policy, the insurer would deny which of the following physical damage claims? A Loss to the covered auto's tires caused by road damage B Loss to sound reproduction equipment permanently installed in the covered auto C Earthquake damage to the covered auto D Loss to the covered auto's electronic ignition equipment
Loss to the covered auto's tires caused by road damage
Physical damage coverage on a Personal Auto policy may cover which of the following losses to Your Covered Auto? A Mechanical breakdown B Malicious mischief to tires C Loss due to war D Loss due to radioactive contamination
Malicious mischief to tires
All of the following are true of Part D - Coverage for Damage to Your Auto on a Personal Auto policy, except: A Collision coverage usually is written with a deductible B Part D provides physical damage coverage for covered autos and non-owned autos used by an insured C Part D covers damage to the insured auto and to another auto with which it collided D Damage to the insured auto after colliding with a deer would be covered under Other Than Collision coverage
Part D covers damage to the insured auto and to another auto with which it collided
Which of the following is an insured's duty in the event of loss covered by a Personal Auto policy? A Call the police if legal papers are received B Contact the at-fault party C Refer the claim adjuster to an attorney D Promptly notify the police in the event of a hit-and-run accident
Promptly notify the police in the event of a hit-and-run accident
The limit of liability of Part D - Coverage for Damage to Your Auto under a Personal Auto policy states that the limit is: A Reduced by an amount equal to losses paid on the covered auto B The lesser of the market value of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality C Equal to the limit of liability of Coverage A D The lesser of the actual cash value of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality
The lesser of the actual cash value of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality
An insured is on vacation and using a vehicle in a state that is different from their home state where the auto is principally garaged. Which of the following statements best describes how liability coverage provided by the insured's Personal Auto policy applies in the different state? A The liability limits are automatically adjusted to the minimum limits required by the state, if the original policy limits do not meet those requirements B The liability limits are automatically adjusted to the minimum limits required by the state, regardless of the policy's original limits C The insured must ensure their liability limits meet the requirements of any state through which they may travel, either at the time of application or by purchasing different limits prior to traveling D The liability limits will be the lesser of home state coverage or the minimum liability requirement of the state in which the vehicle is being used
The liability limits are automatically adjusted to the minimum limits required by the state, if the original policy limits do not meet those requirements
In the event of an accident, all of the following people may receive medical payments under a Personal Auto policy, except: A The named insured, who is struck as a pedestrian by an ATV B The named insured, who is occupying a rental car C A family friend, who is a passenger in a covered auto D The named insured's foster child, who is struck by an auto while on a crosswalk
The named insured, who is struck as a pedestrian by an ATV
After a 4-car accident caused by the insured, Claimant A has bodily injuries in the amount of $49,500, Claimant B has bodily injuries equaling $19,500, and Claimant C has bodily injuries equaling $14,000. If the insured's Personal Auto policy limits are 25/50/10, what will the insurer pay? A $49,500 B $58,500 C $50,000 D $83,000
$50,000
After a 4-car accident caused by the insured, Claimant A has bodily injuries in the amount of $49,500, Claimant B has bodily injuries equaling $19,500, and Claimant C has bodily injuries equaling $14,000. If the insured's Personal Auto policy limits are 25/50/10, what will the insurer pay? A $50,000 B $49,500 C $83,000 D $58,500
$50,000
N has a Personal Auto policy with 30/60/15 limits. After an accident where N was at fault, $45,000 in damages is awarded against N for bodily injury to the other driver and $10,000 in damages is awarded against N for property damage to the other driver's car. N also incurred defense costs equal to $30,000. How much will N's insurer pay? A $60,000 B $75,000 C $70,000 D $85,000
$70,000
