[Prop&Cas] Ch6- Personal Auto Policy
Which of the following will be paid by Supplementary payments under Part A of the Personal Auto Policy?
$100 for bail bonds
S carries a Personal Auto Policy with Liability limits of 50/100/25. What is the maximum the policy will pay if S struck another vehicle causing injury to the occupants as follows: Driver - $70,000; Passenger 1-$30,000; Passenger 2-$50,000 and property damage to the other vehicle - $20,000?
$120k
Policyholder B has a BAP with limits of 100/300/50. In an accident for which B was liable, there were BI claims in the amounts of $80,000; $100,000; and $125,000; and PD claims of $20,000 and $35,000. How much will his policy pay?
$280,000 BI and $50,000 PD
An insured has auto insurance with both Company A and Company B; how much will Company B have to pay for a covered loss of $3k if Company A's Limit of Liability is $100k and Company B's is $200k?
$2k, If other auto liability insurance applies, each policy will pay its proportionate share of the loss. Company B's limit is 2/3 of the total coverage by both policies. 2/3 of the total loss of $3k = $2k
Policyholder J hit a deer with his 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?
$400
Company A's per person Limit of Liability is $100,000 and Company B's is $200,000 for the same insured. How much will Company B have to pay for a covered $6,000 loss caused by the insured?
$4k, If other auto liability insurance applies, each policy will pay its proportionate share of the loss. Company B's limit is 2/3 of the total coverage by both policies. 2/3 of the total loss of $6k = $4k
Claimant A has bodily injuries in the amount of $49,500; claimant B, $19,500; and claimant C $14,000 arising out of a 4-car accident caused by the insured, whose PAP carries limits of 25/50/10. What will the insurer pay?
$50k, Regardless of the individual claim amounts, because the total of the individual claims ($83,000) exceeds the per accident limit of $50,000, the insurer's liability is limited to $50,000 for all three claimants
Under the PAP, after a collision the insured is entitled to Transportation expenses up to:
$600
The Limited Mexico coverage provides coverage for how many miles into Mexico?
25 miles
Which of the following would not be covered under a Personal Auto Policy?
A motorcycle
Which vehicle would not be covered under an unendorsed Personal Auto Policy?
A motorcycle
Which of the following is a covered auto under Personal Auto liability?
A new vehicle purchased 7 days ago to replace an old vehicle but not yet reported to the insurer
Of the following, which is covered under Part D - Coverage for Damage to Your Auto?
A newly acquired vehicle added to the policy within 14 days
Which of the following is covered under a Personal Auto Policy?
A vehicle driven with permission by an unlicensed driver
Uninsured Motorist Coverage under a Personal Auto Policy covers which of the following vehicles?
A vehicle owned by the named insured
All of the following are considered uninsured motor vehicles, except:
A vehicle that is being used as a residence
Which of the following is a duty required of the insured in the event of a loss under the PAP?
Allow an inspection and appraisal of the damage before an auto is repaired
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
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
Under Part D - Coverage for Damage to Your Auto of the Personal Auto Policy, vehicle upset would be covered under:
Collision
Physical damage to the insured auto that is not covered under collision, and is not otherwise excluded, would be covered under:
Comprehensive, provides coverage for damages not caused by collision and not excluded in the exclusions
Part D of the Personal Auto Policy provides which of the following coverages?
Coverage for Damage to Your Auto
Under a Personal Auto Policy, which of the following is true of liability for bodily injury resulting from the insured's use of a non-owned auto?
Coverage is provided on an excess basis
Under Part A of the Personal Auto policy, which of the following would be covered?
Damage to a parked car, Liability coverage is not provided for: Damage to property owned, being transported, or in the care of the insured
Regarding Medical Payments under the Personal Auto Policy, the liability limit shown in the Declarations is the maximum the policy will pay for which of the following?
Each person injured in any one accident
Which of the following statements is not true about a claim payment for a collision loss under the PAP?
If the insurer recovers and returns stolen property to the insured, no further payment is due
Which of the following is not true about a claim payment for a Part D under Personal Auto?
If the insurer returns stolen property to the insured, no payment for damages incurred will be made
All of the following are correct regarding the Part A limit of liability under the Personal Auto Policy, except:
If the loss is covered under more than one Part of the policy, payment will be duplicated
Which of the following is covered under Part A of the Personal Auto Policy?
Injury to an employee while away from work
All of the following are true about a newly acquired additional vehicle, except:
It can be used to transport goods for hire if receipts are less than $10k
All of the following are true of the Personal Auto Policy, except:
It is written only with split limits of liability
Which of the following best describes the Towing and Labor Costs endorsement to the Personal Auto Policy?
It provides payment for towing to a garage, or for labor that is performed at the site of a mechanical disablement
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
Which of the following Part D claims would be denied under the Personal Auto Policy?
Loss to the covered auto caused by road damage to tires
Choose the physical damage claim that would be covered under the Personal Auto Policy
Malicious mischief to the tires
Which of the following is not a Supplementary Payment under Part A of the Personal Auto Policy?`
Medical payments for an occupant of an insured vehicle
Which of the following vehicles is covered by Liability coverage under the Personal Auto Policy?
Non-owned golf cart
Liability coverage under the PAP will cover which of the following?
Non-owned golf cart, Vehicles designed mainly for use off public roads are excluded, except for non-owned golf carts
If a bird hits a windshield and breaks it, which Personal Auto Policy coverage would pay the loss?
Other Than Collision coverage
While driving in another state with higher coverage requirements, which of the following sections of the PAP automatically provides the required coverage?
Out of State Coverage
Which type of standard policy includes coverage options that would not exclude damage by flood?
Personal Auto
Part E of the Personal Auto Policy states that after a loss the insured must:
Protect the auto from further damage
A temporary substitute vehicle is not a covered auto if used to substitute for which of the following?
Rental car
Which of the following vehicles is covered under Part B - Medical Payments of the personal auto policy?
Share-the-expense vehicle
Which statement is not correct about the Right to Recover Payment under the PAP?
The Right to Recover is an insured's right
Which of the following is included in the Personal Auto Policy's coverage territory?
The U.S., its territories, Canada, and Puerto Rico
When an auto has two auto policies with the same insurer, the insurer's liability would not exceed:
The highest limit of the two policies
The limit of liability of Coverage D, Damage to Your Auto, under the Personal Auto Policy states that:
The limit of liability is the lesser of the actual cash value (ACV) of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality
Choose the true statement regarding Out of State Coverage in the Personal Auto Policy
The limit of liability will be the same as the coverage provided in the home state or the minimum liability requirements in the state where the covered auto is being used, whichever is greater
Which statement is false regarding the Personal Auto Policy?
Theft is covered under property damage liability
Which of the following is true of supplementary payments under Part A of the Personal Auto Policy?
They are paid in addition to the liability limits of the policy
Which coverage protects the insured against drivers who do not have auto liability insurance limits adequate to cover a loss?
Underinsured Motorist Coverage
Which of the following coverages under the Personal Auto Policy protects the insured against drivers who do not have adequate auto liability insurance limits?
Underinsured Motorist Coverage
Which of the following does not pay regardless of fault?
Uninsured Motorist Bodily Injury
Policyholder J's PAP includes Other Than Collision coverage, but no Collision coverage, with a $200 deductible. After her 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 her insurance company pay?
Zero
