Personal Auto

If a person wants to include a newly-acquired auto in a policy that is already established for another vehicle, the insurer must be notified within...

14 days

An insured was involved in an automobile accident for which the insured was at fault. Which of the following coverages would pay for damage to the insured's automobile?

Collision

Extended nonowned coverage endorsement in a PAP broadens which of the following coverages?

Liability and medical payments

Transportation expenses are covered under a personal auto policy for...

$20 per day, for a maximum of $600 (or 30 days, kicks in after 48 hours)

In California, the liability for bodily injury or death to all people is a cumulative liability limit of...

$30,000

In a personal auto policy, the medical payments coverage is similar to...

Accident insurance, because it pays medical expenses regardless of fault

An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage?

$14,000 (The limit is not more than $5,000 per person, per accident)

If a liability policy had split limits of 50/100/30, what is the maximum amount that would be payable in the event of injury to a single person?

$50,000

Which of the following would NOT be covered under the liability section of a personal auto policy?

Bodily injury is caused by the insured's negligence while driving a three-wheel all-terrain vehicle

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

Which of the following is NOT a limitation under the Mexico Coverage endorsement in personal auto policies?

It covers lawsuits brought by either U.S. or Mexican citizens

All of the following statements are true regarding the low-cost auto insurance program in California EXCEPT...

It is only available in select counties (It is available statewide)

A restaurant is out of business for 3 days after an insured's automobile hits an electrical pole. The pole falls and hits the building, knocking out all electrical power supply. Which of the following is NOT covered under the insured driver's auto policy?

Lost revenues from the restaurant

Which of the following will most likely be the same in a PAP and a motorcycle endorsement?

Medical coverage

Rental Reimbursement is only available if the policy includes which coverage?

Other Than Collision Coverage

All of the following are TRUE regarding the California Automobile Assigned Risk Plan (CAARP) EXCEPT...

The Federal government has regulatory oversight over the program due to the pilot California Low Cost Auto Insurance Program (it should be the Department of Insurance)

Which of the following statements is FALSE regarding the cost of the low cost automobile insurance program?

The policy covers one vehicle per household (it should be two)

All of the following are true statements regarding coverage limits of low-cost automobile insurance EXCEPT...

The policy would provide coverage for physical damage

When a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy?

They do not change

An insured is driving her auto and strikes a large pothole, causing a flat tire. Which coverage of the insured's personal auto policy will pay for the repair?

This loss is not covered

What type of coverage protects the insured in an accident caused by a driver with insufficient coverage?

Underinsured motorist

What is the name for the type of property damage coverage that protects the insured or the covered auto in an accident with someone who does not have coverage?

Uninsured motorist

In California, the liability for bodily injury or death to one person has a financial responsibility liability limit of...

$15,000

In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for...

Uninsured motorist coverage (PD, BI, & UM)

What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement?

$25

In California, the liability for damage to property is limited to...

$5,000

An insured has an auto liability policy with limits of 25/50/15. The insured is involved in an accident caused by her negligence and is held legally liable for bodily injuries of 3 persons 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

Which of the following will have the broadest coverage provided for a vehicle in the Declarations?

A newly acquired auto

Which of the following would be eligible for the California low-cost auto insurance?

An individual with a good driving record whose income is at 100% of the federal poverty level

Under a personal auto policy, in which of the following locations would a vehicle primarily garaged in California be covered?

Any other state

While an insured's covered auto is in the repair shop following damage caused by a collision, the insured would have coverage for which of the following vehicles under a personal auto policy?

Any vehicle not owned by the insured, but furnished for use while the covered auto is out of normal use because of repair

All of the following are eligibility criteria for applicants in the CAARP EXCEPT...

Anyone who does not owe money on any automobile insurance policy within the last 18 months (it should be 12 months)

An insurer has the right of cancellation/nonrenewal of an existing insurance policy for all of the following EXCEPT...

Arbitrary exclusion from coverage due to age of driver and type of vehicle to be insured

With regards to the personal auto policy, in the event of a claim or loss, the insured is required to do all of the following EXCEPT...

Immediately report to an emergency room for medical examination

A personal auto policy would be considered excess when an insured...

Leaves his car in a parking garage and the car is involved in an accident

All of the following are FALSE regarding eligibility to place business through the CAARP EXCEPT...

Only CAARP-certified agents or CAARP-certified brokers are authorized to accept applications

Which of the following is included under the physical damage coverage of a personal auto policy?

Sound reproduction equipment permanently installed in the covered auto

A driver with 10 years of experience driving an automobile has never had a traffic violation or a DUI. He is now applying for a separate motorcycle policy. He has obtained his motorcycle license 2 years ago. Which of the following is true?

The Good Driver Discount will not apply to the motorcycle

Which of the following would be considered the most important factor in determining the rates and premiums for an applicant for an auto policy?

The applicant's driving record

A passenger in a friend's car is injured while getting into the car. Which of the following statements would apply if both the passenger and the driver had medical payments coverage under a personal auto policy?

The driver's policy would be primary

Which of the following losses would be covered under the property damage liability coverage of a personal auto policy?

The insured damages a rented garage when he failed to stop in time

Which of the following circumstances would be EXCLUDED under medical payments coverage of a personal auto policy?

The insured is injured while driving his motorcycle on his resident premises (Coverage does not apply when the insured is occupying a vehicle with fewer than 4 wheels)

The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT...

The insured is injured while exiting a friend's mobile home

All of the following are true regarding physical damage coverage EXCEPT...

The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle (it should be the lesser)

In personal auto policies, the term "you" refers to...

The named insured

All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT...

Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident

When a replacement auto is acquired during the policy period, what coverage will apply to it automatically under a personal auto policy?

Whatever coverage applied to the vehicle being replaced

When would uninsured motorist coverage apply?

When the other party is legally liable but has no insurance

The bankruptcy provision found in the personal auto policy states that bankruptcy of the insured...

Will not relieve the insurer of its policy obligations

An uninsured motor vehicle includes all of the following EXCEPT...

A vehicle being used for public livery

An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?

Combined single

The at-fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all the damage done to the insured. This driver is...

Considered underinsured

Zachary is the proud owner of a 1998 sports car to which he has added a high performance engine costing several thousand dollars. Zachary has added an endorsement to his auto policy which will provide coverage against loss or damage to the engine. This type of endorsement is known as...

Damage to Your Auto (Customized Equipment)

Which of the following is true regarding renewability of a low cost auto insurance policy in California?

It must be renewed annually

Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss?

Liability coverage

Which of the following is a common exclusion found in Part D: Coverage for Damage to Your Auto of a PAP?

Mechanical breakdown

While an insured was towing a utility trailer with his auto, the trailer 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

Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is...

Provided by the insured's policy on an excess basis

Which of the following is NOT one of the 3 factors set by state law for determining rates and premiums on automobile insurance policies?

The type and model of vehicle

Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period?

3 years

Any person who claims that he or she meets the criteria based on a driver's license and driving experience acquired anywhere other than in the United States or Canada is presumed to be qualified to purchase a Good Driver Discount policy if that person has been licensed to drive in the U.S. or Canada and meets the criteria for that period for at least the previous...

18 months

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 rate charged for a Good Driver Discount policy should be at least what percent below the rate the insured would otherwise have been charged for the same coverage?

20%

California's Compulsory Financial Responsibility Law requires every driver and every owner of a motor vehicle to maintain financial responsibility (liability coverage) at all times. If you don't have acceptable financial responsibility and have an accident, you may lost your driver's license for up to...

4 years

An 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 2-ton truck with a 6,500-pound capacity (capacity only goes up to 10,000 pounds)

An automobile that is owned by a nontraditional household, not consisting of a husband and wife, may be insured under a personal auto policy if...

A joint ownership coverage endorsement is added

Which of the following is NOT a requirement for purchasing a Good Driver Discount policy?

A person must have been licensed to drive a motor vehicle for the previous 5 years (it should be 3 years)

With respect to auto insurance, the term owned autos includes all of the following EXCEPT...

A pickup or van titled to and used in the named insured's business

California's Compulsory Financial Responsibility Law requires every driver and every owner of a motor vehicle to maintain financial responsibility (liability coverage) at all times. All of the following are acceptable forms of financial responsibility EXCEPT...

A surety bond for $50,000 obtained from a company licensed to do business in California (it should be $35,000)

With respect to the personal auto policy, which of the following vehicles could be classified as a nonowned auto?

A vehicle that is titled to another person, but is being used with permission by an insured

Which of the following would NOT qualify as a hired auto?

An auto borrowed from an employee

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)

How many vehicles per person can be covered by the California low-cost auto insurance program?

No more than 2

A meteorite hits the insured's car, causing damage. Under which of the following coverages in a personal auto policy would this loss be paid?

Other-than-collision

An insured has a liability policy that sets the amount for all claims that arise from a single incident at $50,000. Which type of limit of liability does this insured's policy have?

Per occurrence

If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT...

Physical damage

When are the limits for uninsured motorist coverage set?

When the coverage is purchased

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 other-than-collision coverage

An insured has a personal auto policy with both comprehensive (other-than-collision) and collision coverage. His car is stolen and recovered five days later. If the insured claims transportation expenses of $20 per day, how much will his policy pay?

$60 ($20 per day after 48 hours, not to exceed 30 days in total)

All of the following are TRUE regarding the Commercial Automobile Insurance procedure (CAIP) EXCEPT...

Risks requiring higher limits of $50,000 are ineligible for coverage