QUIZ 9

Under a Personal Auto policy, if the deductible for collision is $500 and $250 for Other Than Collision, what would the insurer pay if he had a covered collision totaling $3,000 in which glass was also broken? $2,500 $3,500 $3,000 $500

$2,500

Which of the following is NOT a supplementary payment under coverage A of a Personal Auto Policy? $200 a day loss of earnings $500 a month loss of income $250 maximum for bail bonds Postjudgement interest

$500 a month loss of income

Under Coverage B - Medical Payments in a Personal Auto Policy, if the Medical Payments coverage limit is $8,000 and 4 people are injured, what is the maximum that may be paid to each person? $2,000 to each person for a total $8000 paid out. $8,000 to each person. $2,000 to each person, if his name is on the policy. $8,000 to each person, if his name is on the policy.

$8,000 to each person.

What is the difference between "share-the-expense car pools" and "for-hire" situations? ''Share-the-expense car pools are not covered in a personal auto policy and ''for-hire'' are. There is no difference between the two because both carry the same coverage. Each person is covered in a "for-hire" situation, whereas each person in a "share-the-expense car pools" ''Share-the-expense car pools'' are covered in a personal auto policy and ''for-hire'' are not.

''Share-the-expense car pools'' are covered in a personal auto policy and ''for-hire'' are not.

What is California`s minimum requirement for coverages A, B, C (Liability, Medical, Uninsured Motorist) in an auto policy? 15/30/5 100/150/100 100/300/500 15/30/10

15/30/5

How many days advance notice must be given to an insured for mid term-cancellation due to any reason other than nonpayment or non-renewal? 10 days 15 days 30 days 20 days

20 days

How many days advance notice of cancellation due to non-renewal does an insurer need to give an insured? 30 days 10 days 20 days 15 days

30 days

How many days does an insured have to request collision coverage when a newly acquired auto replaces a covered auto that has liability coverage only? 6 days 4 days 3 days 5 days

4 days

Which would not qualify as a covered trailer when being towed by an auto? All are covered trailers Farm wagon or implement U-Haul trailer Sailboat

All are covered trailers

Which of the following is NOT an ISO eligibility requirement for a Personal Auto Policy (PAP)? Any commercial vehicle used during business hours. Any private passenger auto. Any pickup or van with a gross weight less than 10,000 pounds that is NOT used in any business other than farming. Vehicles owned by a person or married couple.

Any commercial vehicle used during business hours.

All are true, except which of the following concerning Part B of a PAP? The insured is covered Has a 3 year limitation Applies to pedestrians Pays regardless of fault

Applies to pedestrians

Which of the following is NOT a determining factor for eligibility for the Good Driver Discount? No DUI in 7 years. At least 3 years of driving experience. Good driving record. At least 30 years of age.

At least 30 years of age.

To be eligible to receive the Low Cost Auto Insurance Program, a driver must meet all of the following, EXCEPT: Have no more than one moving violation. Have no more than one property-damage-only accident in which he or she was at fault. Be at least 16 years of age. The vehicles insured cannot be valued at more than $20,000 by the DMV.

Be at least 16 years of age.

All of the following are exclusions that apply to liability coverage under a personal auto policy EXCEPT: Bodily injury or property damage caused accidentally by the insured. Damage to property being transported by an insured. Damage to property owned by the insured. Bodily injury to a company employee if Workers Compensation benefits are available.

Bodily injury or property damage caused accidentally by the insured.

Which of the following organizations provides auto insurance for motorists who are unable to obtain coverage in the conventional market due to their driving records or extraordinary circumstances? CEA FEMA NFIP CAARP

CAARP

Which of the following is NOT a requirement for CAARP? Nonresidents who own a vehicle registered in California. Members of the military stationed in California. Certified Producer in any state in the U.S. California residents.

Certified Producer in any state in the U.S.

Which of the following coverages would be useful if you bought a new car, and a month later you lose control of the car and total it? New Auto Coverage GAP Coverage Liability Coverage P & I (protection and indemnity)

GAP Coverage

Which of the following is NOT covered under collision coverage? Impact with another vehicle. Impact with an animal. Impact with another flying object (wall, tree, pole, etc.). Upset (flipping the vehicle over).

Impact with an animal.

In an auto policy, coverage A, B, and C respectively represent: Liability, Medical, and Uninsured Motorist Medical, Liability, and Uninsured Motorist Uninsured Motorist, Liability, and Medical Liability, Uninsured Motorist, and Medical

Liability, Medical, and Uninsured Motorist

Which of the following is NOT a difference between a Personal Auto Policy and a Motorcycle endorsement? Extra Payments coverage Driving experience Medical coverage Liability coverage

Medical coverage

The split limit of 15/30/5, the 5 refers to which of the following? Medical payments Per person limit None of these Property damage

Property damage

All of the following are ways to show financial responsibility according to the Financial Responsibility Law EXCEPT: Purchase a surety bond for $89,000 from a California licensed insurer. Deposit $35,000 in cash per vehicle with the DMV. Obtain a DMV issued self-insurance certificate. Purchase auto liability insurance with a minimum of 15/30/5 coverage.

Purchase a surety bond for $89,000 from a California licensed insurer.

Which of the following would be considered a named insured? Person away at school Resident spouse Any resident relative Only those named

Resident spouse

Collision would pay for damages to the insured vehicle in which situation? Vehicle upset during riot Running over branches Hitting a deer Avalanche of rocks

Running over branches

Which of the following is NOT true of the Market Conduct Bureau? The Bureau protects the public when they purchase insurance, make claims, etc. from insurance companies. The Bureau conducts examinations licensed insurer`s claims-handling practices in the state. The Bureau consists of the Field Claims Bureau and Field Rating and Underwriting Bureau. The Bureau provides individuals and companies assistance in buying automobile liability insurance in the state.

The Bureau provides individuals and companies assistance in buying automobile liability insurance in the state.

All of the following are true about Uninsured Motorists coverage, EXCEPT: The limit for property damage when an insured has no collision coverage is $3,500. The owner of the vehicle that is responsible for the loss has purchased Liability insurance, but the company is insolvent. Uninsured Motorists coverage only applies to bodily injury. The other driver does not have to be liable for the injuries or damage to property.

The other driver does not have to be liable for the injuries or damage to property.

When are personal effects that are transported in the vehicle covered? When the loss was caused by another driver. They are not covered. They are not covered unless listed on an endorsement. When the personal effects are listed in the policy.

They are not covered.

Which of the following is NOT true of a policy with Non-standard Physical Damage coverage? This coverage is for people who have an excellent driving record. This coverage is for people who have a less than favorable driving record. This coverage is often purchased when an insured needs a physical damage policy but only qualifies for the CAARP plan. This coverage typically covers only the driver on the policy.

This coverage is for people who have an excellent driving record.

What is the purpose of Named Non-owner Coverage? This endorsement allows the PAP to cover vehicles such as motorcycles, ATVs, dune buggies, and motor homes. This endorsement allows nonowned vehicles furnished for the insured`s regular use (company car). This endorsement is for people who don`t own a vehicle but still drive (rented, public transportation, company vehicle, etc.) This endorsement covers expenses incurred in the event of a total theft.

This endorsement is for people who don`t own a vehicle but still drive (rented, public transportation, company vehicle, etc.)

Coverage that could apply to a hit and run accident? Waiver of deductible UMPD All could apply UMBI

UMBI

Which of the following is NOT a benefit of having an Umbrella or Excess policy? Umbrella coverage policies can provide excess protection over Personal Liability coverage, as well as other types of liability programs. The extra coverage provided adds protection for a higher amount of coverage at an inexpensive rate. The Umbrella coverage provides a minimum of $1,000,000 in additional coverage. An Umbrella policy will cover all perils and medical payments in an auto accident.

Umbrella policy will cover all perils and medical payments in an auto accident.

Insured has an accident in a modified no-fault state the policy responds by: requiring an endorsement adding PIP at no charge neither adding PIP no charge or requiring an endorsement are correct both adding PIP at no charge and requiring an endorsement are correct

adding PIP at no charge

The incorrect statement concerning qualification for the low cost program is: licensed 2 years must be at least 19 can have one point none are incorrect

licensed 2 years

The incorrect statement concerning transportation expense is: no deductible applies available for bus fare must be endorsed applies to Part D claims

must be endorsed

Coverage(s) that follow the insured and family members into any auto: would be Part A, B, C, & D would be Part A, B, and C would be Part B or Part C would be Part A

would be Part B or Part C