Limited Lines Automobile (Version 4.0)
accidents that occur in which of the following places are covered under a PAP?
Alaska
the PAP 'coverage for damage to your own automobile" states that the limit of liability is the lesser amount necessary to repair or replace the property or the:
actual cash value of the stolen or damaged property
the other-than-collision section of a PAP would not cover:
all of these are covered
the premiums for a PAP in the state of CA are determined by:
all of these are used to determine
which of the following characteristics must exist in order for someone to be considered negligent?
all of these characteristics are required
under a personal umbrella policy, what underlying coverage must an insured typically maintain?
auto and personal liability only
if an insured timely requests for a newly acquired auto under an existing PAP, what coverage is provided before the request is made?
broadest coverage for any vehicle shown in the declarations
the term "collision" means
colliding with another vehicle, object, or the upset of the vehicle
if an insured with a liability-only PAP has an accident in a state that requires personal injury protection (PIP), how does the policy respond ?
coverage is automatically broadened to provide PIP
which component of an insurance policy indicates who and what are insured?
declarations page
what is a principal rating factor used for PAP?
driving record
according to CA Insurance Law, who is legally allowed to cancel an insurance policy?
either the insurer or the insured
which of the following refers to the method of an insurance company must receive an official approval from the state DOI before it uses new rates?
file and use
if there is a failure to display even a minimal degree of care that should and could be expected of a person, accompanied by a total disregard for the safety of others it is known as which type of negligence?
gross
managing risk involves all of the following EXCEPT:
identifying and increasing existing hazards
all of the following are true of insurance, EXCEPT:
it eliminates risk
according to the definition of an ideally insurable risk, which of the following is not a requirement?
loss must be the result of a catastrophic event
an insured owning a PAP has just purchased a new motorcycle, but does not have coverage under the auto policy because
motorcycles are only covered with the proper endorsement
exclusive agents can be described as as which of the following?
none of the above
all of the following are principal rating factors for PAP's, EXCEPT:
number of listed drivers
living next to a factory that manufactures explosives would be known as what type of hazard?
physical
all of the following expenses are covered in addition to the limits of liability under coverage A of a PAP, EXCEPT:
pre-judgment interest
if an insurance company transfers part of the risk associated with a particular policy to another insurance company, this is known as:
reinsurance
the process where an insurer has an agreement with other insurers to share amounts of insurance over established retention limits is known as:
reinsurance
the term that best describes an insurance company compensating an insured for a loss by another party, then subsequently the insurer recovers damages from the at-fault party's insurer resulting in the insured voluntarily surrendering the right to sue a party causing the loss is known as:
subrogation
an applicant would like to buy a personal umbrella policy, which of the following is true about purchasing an umbrella policy?
the insurer may require that he maintain underlying liability coverage by carrying auto and personal liability policies
what steps need to be taken to terminate a licensee's license that is in the possession of an employer?
the licensee needs to give a written notice of intent to the insurance commissioner
which department of an insurance company reviews the applications that have been completed and submitted by potential customers to determine whether or not the individuals qualify for the coverage being applied for?
underwriting
Stan's son accidentally releases the brake of the family car and caused it to roll down and strike the neighbor's vehicle causing $1,800 worth of damage. Will his PAP pay for damage?
yes, the loss would be covered as property damage liability of stan's policy
Kim is insured by a PAP that has $25,000 per person, $50,000 per occurrence for BI claims. An accident occurs, kim is found to be at fault which results in BI suits by three people in the amounts of $9,000, $16,000, and $32,000. How much will her PAP cover?
$50,000