6 - Personal Auto Policy

Question 1

4 ways to “satisfy the minimum financial responsibility requirements”

Answer 1

1) certificate of self insurance
2) surety bond
3) certificate of deposit or cash to be held by the state treasurer
4) auto liability insurance policy (most common)

Question 2

Do farm vehicles need to satisfy the minimum financial responsibility requirements?

Answer 2

No

Question 3

Split limit policy

Answer 3

1) 15k per person for bodily injury liability
2) 30k per occurrence for BI liability
3) 10k per occurrence for PD

The 15k is WITHIN the 30k, NOT added.
Insurer would pay 10k for that occurrence for PD.

Question 4

Combined Single Limit Policy

Answer 4

One limit applied to BI & PD

Question 5

Who is BI liability for?

Answer 5

The other party you injure.

Question 6

Who is Uninsured Motorists (UM) Liability for?

Answer 6

You and your passengers in case you’re hurt by an uninsured motorist and it’s their fault

Question 7

Personal Auto Policy

Answer 7

Broadest type of person lines auto policy sold.

Question 8

Business Auto Policy

Answer 8

Designed for vehicles in commercial use, such as pickup and delivery of goods or merchandise.

Question 9

Rates

Answer 9

Based on age, gender, driving record and territory

Question 10

Underwriting

Answer 10

Keeps insurance companies profitable and in business by balancing risk and the premium paid by insured

Question 11

Coverage

Answer 11

Provides broad coverage and is strictly underwritten

Question 12

Does a PAP cover motorcycles?

Answer 12

No

Question 13

Structure if the PAP

Answer 13

Definitions
Part A - Liability ; BI or PD to others
Part B - Medical Payments ; BI to you/pass
Part C - uninsured motorists ; BI to insured
Part D - damage to your auto ; insured vehicle
Part E - duties after ; notify & help
Part F - general provisions ; legalities

Question 14

Bodily injury

Answer 14

Bodily harm, sickness or disease, including death that may result.

Question 15

Property damage

Answer 15

Physical injury to, destruction of, or loss of use to tangible property

Question 16

Is a kid away at college still apart of “the household” on a policy?

Answer 16

Yes, still a resident

Question 17

Owners policy is _______?
Drivers policy is ______?

Answer 17

Primary
Excess

Question 18

Is a trailer covered on a PCP?

Answer 18

Yes it’s covered for liability

Question 19

When you buy a new car is it covered?

Answer 19

Automatically for the broadest coverages found on the Declarations WITHIN 14 DAYS

Question 20

Bail Bonds
Part A Supplementary Payments

Answer 20

Up to $250 for Bail Bonds required bc of accident that resulted in BI or PD

Question 21

Appeal Bonds & Interest
Part A Supplementary Payments

Answer 21

Will pay premiums on appeal bonds and interest accruing after a judgment on your behalf

Question 22

Loss of Earnings
Part A Supplementary Payments

Answer 22

Up to $200 per day if it requires your attendance at hearings or trials

Question 23

Intentional Acts
Part A Exclusions

Answer 23

Running someone over on purpose

Question 24

Your Own Property In Transit
Part A Exclusions

Answer 24

Your property isn’t covered while being transported from A to B

Dresser damaged on back of truck during accident is t covered.

Question 25

Injury to Employees
Part A Exclusions

Answer 25

Covered by Workers Compensation

Question 26

Taxi or Livery
Part A Exclusions

Answer 26

Taxi or limousine services are not covered

Question 27

Auto Business
Part A Exclusions

Answer 27

No coverage for selling, repairing, servicing, storing or parking cars.

Question 28

Commercial Usage
Part A Exclusions

Answer 28

No coverage used commercially, EXCEPT FOR FARMING OR RANCHING, which IS covered

Question 29

Using A Vehicle Without Permission
Part A Exclusions

Answer 29

Not cover any person using a vehicle without a reasonable belief that they are entitled to do so.

Question 30

Non-Owned Vehicle Furnished for Your Regular Use
Part A Exclusions

Answer 30

Should be paying a premium but aren’t.

Question 31

SR-22

Answer 31

Form indicating the name of the insurance company, policy limits of insured, and a promise to notify the state if the policy is canceled

Question 32

Auto Medical

Answer 32

Optional coverage
Not liability
Expenses within three years from accident for medical and funeral services

Question 33

Uninsured Motor Vehicle

Answer 33

No BI liability policy applies, written for lower limits, hit and run, insurer denies coverage or insurer is insolvent

Question 34

Underinsured Motorist (UIM)

Answer 34

Only applies when the other party who negligently injures you has insurance but not enough

Question 35

Collision

Answer 35

Upset of auto or it’s impact with another vehicle

Question 36

Other Than Collision

Answer 36

• missiles or falling objects
• fire
• theft or larceny
• explosion or earthquake
• windstorm, hail, water or flood
  Mischief, vandalism, riot or civil breakout
• contact with bird or animal
• breakage of glass

Question 37

Policy Territories

Answer 37

US, Canada and Puerto Rico

Question 38

Named Nonowner
Endorsement

Answer 38

Modified contract that covers non owned vehicles only and only sold to non owner drivers. Coverage only to the one person on declaration’s page and gives Liability (BI & PD), UM and medical only

Question 39

Miscellaneous-Type Vehicles
Endorsement

Answer 39

To cover a motor home, motorcycle, dune buggy or a golf cart

Question 40

Towing & Labor
Endorsement

Answer 40

Must be performed at the place of breakdown and NOT at the repair shop

Question 41

Mexico Coverage
Endorsement

Answer 41

Can get in border states and can only be solicited, written and accepted through a duly licensed Surplus Lines broker domiciled in Mexico.