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Casualty > 3 - Personal Insurance Coverages > Flashcards

3 - Personal Insurance Coverages Flashcards

1
Q

PAP

A

-Personal Auto Policy

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2
Q

The Personal Auto Policy (PAP) sold in North Carolina is a policy designed to provide no less than the minimum liability limits as required by the state of North Carolina on a __________ basis.

A

-“per occurrence”

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3
Q

Liability coverage indemnifies drivers for their _________ such as causing an automobile accident.

A

-negligent acts

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4
Q

The PAP will also have coverage for “_________ and _______ Motorists” to protect persons from drivers who carry insufficient liability limits or if they have no auto insurance.

A
  • Uninsured

- Underinsured

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5
Q

The following types of automobiles are eligible for coverage under the PAP:

A
  • 4 wheel, private passenger auto including station wagons
  • pickup or van less than 10,000 GVW
  • owned or leased private passenger if leased under a written agreement and for a continuous period of at least 6 months
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6
Q

________ is defined as the negligent driver causing bodily injury or property damage due to an auto accident.

A

-At-fault Driver

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7
Q

_________ is an amendment to an insurance contract which creates a change in the original terms.

A

-Endorsement

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8
Q

__________ means a person related to you (the insured) by blood, marriage or adoption who is a resident of the insured’s household. This includes a ward or foster child.

A

-Family Member

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9
Q

________ means the individual whose name is shown on the Declarations page of the policy.

A

-Named Insured

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10
Q

The spouse of the named insured is ________ insured if the spouse lives in the same _______ with the named insured.

A
  • automatically

- household

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11
Q

___________ is a replacement vehicle for a vehicle listed on the “listed” in the Declarations such as a rental auto or a loaner auto while the insured’s auto is being serviced or repaired.

A

-Temporary Substitute Auto

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12
Q

When an insured acquires a vehicle during the policy period, the acquisition will be covered under the following:

A
  • Replacement Vehicle

- Additional Vehicle

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13
Q

The Replacement Vehicle will have the same coverage as the vehicle it replaces. The insurer must be notified within _______ of acquisition.

A

-30 days

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14
Q

The Additional Vehicle will have the _______ coverage of any vehicle described on the Declarations page. The new vehicle must be reported within _______ of acquisition.

A
  • broadest

- 30 days

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15
Q

PAP Coverage Part A

A
  • Liability

- mandatory coverage

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16
Q

PAP Coverage Part B

A

-Medical Payments (MedPay)

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17
Q

PAP Coverage Part C

A

-Uninsured and Underinsured Motorists

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18
Q

PAP Coverage Part D

A

-Physical Damage (Damage to Your Auto)

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19
Q

PAP Coverage Part E

A

-Insured’s Duties

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20
Q

PAP Coverage Part F

A

-General Provisions

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21
Q

Fighting a claim in court is the decision of the _____________. The insured does not have any part of the decision. Because the insurer makes the decision the insurer pays the defense cost.

A

-Insurance Company

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22
Q

North Carolina minimum financial responsibility is _______ for a single Bodily Injury, _______ for Bodily Injury to two (2) or more persons and ______ for Property Damage.

A
  • $30,000
  • $60,000
  • $25,000
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23
Q

The insurer agrees to pay reasonable expenses for necessary medical and funeral services incurred within ______ of the date of an accident without regard to fault.

A

-3 years

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24
Q

Medical payments are paid on a per person, per occurrence basis. Typical Medical Payments (MedPay) coverage is _____; however, larger amounts may be purchased.

A

-$1,000

25
Q

This coverage part is sometimes referred to as “Combined Uninsured and Underinsured Motorist” and is a mandatory coverage in North Carolina.

A

-PAP Part C

26
Q

Your insurer will pay _________ damages which you are legally entitled to recover from the owner or operator of an uninsured or underinsured motor vehicle because of bodily injury sustained by you and caused by an accident with an uninsured motorist.

A

-compensatory

27
Q

A suit may not be brought by an insured until _______ after that person notifies the insurer of their belief that the prospective defendant is an uninsured motorist.

A

-60 days

28
Q

Personal Auto Policy (PAP) Part D provides two (2) major types of coverage:

A
  • Collision Coverage

- Other than Collision (OTC) Coverage

29
Q

Collision provides coverage, as shown on the Declaration page, if the insured vehicle makes ________ impact with another vehicle or object. It also covers “upset”

A

-“direct and accidental”

30
Q

Other than Collision (OTC) is commonly referred to as….

A

-Comprehensive

31
Q

PAP Part D covers loss by ____________ to clothes or other personal effects which are owned by an insured or any family member and are in a covered vehicle.

A

-fire or lightning

32
Q

If a person purchases Collision coverage, _______ will automatically be included. A person can buy just OTC. Each coverage part can have the same deductible, no deductible or a different deductible.

A

-OTC

33
Q

PAP Part D: The insurer will pay, without application of a deductible, up to $15 per day to a maximum of $450 for:

A
  • Transportation Expenses

- Loss of use expenses

34
Q

The insurer will pay only expenses incurred during the period beginning _______ after the theft and ending when the covered auto or the non-owned auto is returned to use or the insurer pays for the loss of the vehicle loss.

A

-48 hours

35
Q

Settlements under PAP Part D are made on….

A

-Actual Cash Value basis

36
Q

If an auto is financed, the financing institution is referred to as the _______

A

-Loss Payee

37
Q

If PAP Part D coverage is cancelled or non-renewed, the insurer will provide coverage for up to ______ to protect the Loss Payee’s interest.

A

-10 days

38
Q

The Personal Auto Policy (PAP) provides no coverage in ______

A

-Mexico

39
Q

Insurers may cancel the liability, medical payments, and UM or combined UM/UIM during the policy period by mailing the notice by first class mail to the insured shown in the Declarations to the last known address at least _____ notice prior to cancellation for non-payment of premiums and ______ notice for all other reasons.

A
  • 15 days

- 60 days

40
Q

The insurer may cancel all coverage other than _____________ with ten (10) days notice.

A
  • Liability
  • MedPay
  • UM or UM/UIM
41
Q

Insurers may choose to non-renew the liability, medical payments, and UM or combined UM/UIM during the Personal Auto Policy (PAP) policy period _______ before the end of the policy period. For other coverage parts, ______ notice must be provided.

A
  • 60 days

- 10 days

42
Q

When _________ added to the PAP, this endorsement provides a selected amount of insurance ($25, $50 or $100, which is the maximum in North Carolina) for the cost of towing or roadside service.

A

-Towing and Labor

43
Q

The __________ endorsement pays benefits when an owned or non-owned auto is out of service more than twenty-four (24) hours because of physical damage covered under OTC or Collision (Coverage D) but not for theft.

A

-PAP Extended Transportation Expenses

44
Q

The amounts payable under the PAP Extended Transportation Expenses are ______ per day with a $450 limit, _____ per day with a $900 limit, or _____ per day with a $1,750 limit.

A
  • $15
  • $30

$50

45
Q

The __________ endorsement pays a benefit if an insured is killed or dismembered while in or struck by a vehicle. The death or dismemberment must occur within ______ of the accident.

A
  • PAP Accidental Death and Dismemberment

- 90 days

46
Q

How are PAP premium rates determined?

A
  • Driving Record
  • Where You Live
  • Type of Automobile
  • Use of Automobile
47
Q

The Driving Record experience period is the ________ immediately preceding the date of application or the preparation of the policy renewal.

A

-3 years

48
Q

Notify insurer of replacement vehicle within:

A

-30 days

49
Q

Additional Vehicle must be reported by the named insured within:

A

-30 days

50
Q

Insurers notice of cancellation of the PAP for non-payment of premiums must be provided to the named insured by mail at least:

A

-15 days

51
Q

Insurers notice of cancellation of the PAP for any other reason other than non-payment of premiums must be provided to the named insured by mail at least:

A

-60 days

52
Q

Insurers notice of cancellation of all other PAP coverage (i.e. Damage to Your Auto) must be provided to the named insured by mail at least:

A

-10 days

53
Q

Essentially the Personal Umbrella Liability Policy provides ________ coverage when the limits of underlying liability policies are exhausted or the policy _______ and picks up where the underlying policy provides no coverage.

A
  • excess

- drops down

54
Q

If the Personal Umbrella Liability Policy does provide coverage, it will be referred to as ________ coverage because the Personal Umbrella Liability Policy will pay the total claim up to the policy limits.

A

-“Drop Down”

55
Q

The Personal Umbrella Liability Policy features a form of policy ______ called a Self Insured Retention (SIR).

A

-deductible

56
Q

The Personal Umbrella Liability Policy may be referred to as a ______ policy.

A

-“Follow Form”

57
Q

Physical Damage coverage also referred to as ________, providing insurance for damage to the hull of a ship and its machinery, and equipment on either a named perils basis or open perils basis.

A

-Hull Coverage

58
Q

Also, Section II contains a provision for medical payments that will pay reasonable and necessary medical and funeral expenses for third parties due to a boating accident filed within ______ of the accident.

A

-3 years

Casualty (4 decks)

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