AD Banker Personal Auto Policy Flashcards by Kerri Burriss

Whose policy will be primary for bodily injury coverage for the injured party if a neighbor borrows an insured’s car and injures a pedestrian?

A
The neighbor’s homeowners liability policy

B
There is no coverage for this loss

C
The neighbor’s personal auto policy

D
The insured’s auto policy

D (Auto coverage follows the vehicle. The insured owner’s coverage is primary.)

How well did you know this?

Not at all

Perfectly

Which of the following damages would be covered under the Liability Coverage of the Personal Auto policy?

A
Damage to a neighbor’s riding lawn mower in the care of the insured

B
Damage to a rental car rented to the insured

C
Damage to property being transported by the insured

D
Damage caused to a rented garage by the insured auto

D (Liability coverage for property rented to, or in the care, custody, or control of the insured is very limited. Damage to a rental car would be covered by either collision or comprehensive coverage as applicable.)

How well did you know this?

Not at all

Perfectly

Which of the following is not eligible for coverage under the Personal Auto Policy?

A
A vehicle being used in a share-the-expense carpool

B
A pickup

C
A van weighing 5,200 pounds

D
A vehicle with fewer than four wheels

D (The Personal Auto Policy does not provide liability coverage for vehicles with less than four wheels or designed for off-road use, except under certain circumstances.)

How well did you know this?

Not at all

Perfectly

Which statement is false regarding uninsured motorist coverage under a Personal Auto Policy?

A
Covered persons include the named insured, family members and any other person occupying the covered auto

B
Coverage does not apply to a vehicle used primarily for use off public roads

C
Coverage does not apply to any vehicle being used to carry property or persons for a fee

D
Coverage includes injuries suffered by someone using a covered vehicle without permission

D (Coverage does not apply when a person is using the vehicle without permission.)

How well did you know this?

Not at all

Perfectly

All of the following are excluded under Part A of the Personal Auto Policy, except:

A
Damage caused by a vehicle designed mainly for off road use

B
Use of a non-owned vehicle without permission

C
Intentional damage caused by the insured

D
A vehicle driven by an unlicensed driver

D (If a covered driver is using the covered auto with permission, the driver is still covered even if not properly licensed.)

How well did you know this?

Not at all

Perfectly

J has a personal auto policy with Liability limits of 50/100/25, UM/UIM limits of 50/100, a Medical Payment limit of $5,000 and Comprehensive and Collision deductibles of $500. J’s vehicle slides on ice and hits a guardrail causing $9,500 in damage to the vehicle and $11,000 damage to the guardrail. J also sustains $1,000 in injuries. How much will the policy pay for all damages?

A
$21,500

B
$11,000

C
$21,000

D
$9,500

C (The policy will pay $11,000 in property damage under liability, $1,000 for injuries under medical payments, and $9,000 for physical damage after the deductible is met, totaling $21,000.)

How well did you know this?

Not at all

Perfectly

Which of these statements is not true about Uninsured Motorist coverage?

A
Coverage is automatically provided for the damage to the insured vehicle

B
A driver is considered uninsured when his/her insurer denies a claim

C
A hit-and-run driver is considered uninsured

D
Bodily injury must be caused by another person who is legally responsible

A (UIM insurance provides coverage for bodily injury only. Property damage would be covered by Part D of the owner’s policy, or by Uninsured Motorist Property Damage, which is optionally available.)

How well did you know this?

Not at all

Perfectly

Part D of the Personal Auto Policy provides which of the following coverages?

A
Liability Coverage

B
Medical Payments Coverage

C
Coverage for Damage to Your Auto

D
Underinsured Motorists Coverage

C (Part D of the Personal Auto Policy includes Collision and Other Than Collision coverages.)

How well did you know this?

Not at all

Perfectly

The Named Non-owner endorsement:

A
Does not supply coverage to meet a state’s financial responsibility law requirements

B
Does not apply to a rented vehicle

C
Provides only liability coverage

D
Covers only the person named on the endorsement

D (The Named Non-Owned endorsement provides liability, medical payments, and UM coverage for a person who does not own, but often borrows or rents a car.)

How well did you know this?

Not at all

Perfectly

The limit of liability of Coverage D, Damage to Your Auto, under the Personal Auto Policy states that:

A
The limit of liability is equal to the limit of liability of Coverage A

B
The limit of liability is reduced by an amount equal to losses paid on the covered auto

C
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

D
The limit of liability is reduced by an amount equal to losses paid during the policy term

C (Generally, the maximum limit of liability is equal to the actual cash value of the vehicle or vehicles insured. If the damage can be repaired, then the limit of liability is equal to the amount necessary to repair the vehicle or vehicles.)

How well did you know this?

Not at all

Perfectly

Which statement is not correct about the Right to Recover Payment under the PAP?

A
The right to recover involves going after the negligent party to pay for the insured’s loss

B
The Right to Recover is an insured’s right

C
The person who is paid a claim must give the insurance company the right to recover damages

D
The insured must reimburse the insurance company if the insured is paid by the other party

B (The Right to Recover is a right given by the insured to the insurer after the insurer paid a claim.)

How well did you know this?

Not at all

Perfectly

Which of the following vehicles is covered by Liability coverage under the Personal Auto Policy?

A
Company car

B
Non-owned golf cart

C
Motorcycle

D
Uninsured owned vehicle

B (Non-owned golf carts are exempted from the exclusion on off-road vehicles, and liability arising from their use would be covered under the policy.)

How well did you know this?

Not at all

Perfectly

Under Part F of the Personal Auto Policy, which of the following is correct when there are two or more auto policies issued by the insurer on the same auto?

A
Each policy will share equally in the loss

B
Each policy will pay the loss independently of the other

C
The maximum that will be paid is equal to the limit of the policy with the higher limit of liability

D
This policy will be excess if the other policy is in a different insurer

C (The Two or More Auto Policies provision of the Personal Auto Policy is intended to prevent the stacking of limits if more than one policy issued by the insurer applies to the same accident.)

How well did you know this?

Not at all

Perfectly

All of the following are true of automobile liability coverage, except:

A
It provides third party protection

B
It may be written with either split or single limits

C
It protects the insured for losses when the insured is legally liable

D
It pays up to $500/day for loss of income by the insured

D (Supplementary payments include compensation for loss of income up to $200/day)

How well did you know this?

Not at all

Perfectly

Collision Coverage under Part D of the Personal Auto Policy would cover which of the following?

A
Damage to the insured auto’s bumper sustained when the auto crashed into a tree

B
Damage to the auto caused by collision with an animal on the roadway

C
Damage to the auto caused by objects blown into it during a severe windstorm or tornado

D
Breakage of the windshield caused by collision with a stone or other missile

A (Part D of the policy specifically stipulates certain causes of loss that are not considered collision. They include missiles or falling objects, fire, theft, explosion, windstorm, contact with a bird or animal, among others.)

How well did you know this?

Not at all

Perfectly

All of the following are considered uninsured motor vehicles, except:

A
A vehicle to which the insuring company becomes insolvent

B
A vehicle to which no liability policy applies

C
A vehicle that is being used as a residence

D
A hit and run vehicle

C (Vehicles used as a residence are excluded from the definition of an uninsured vehicle.)

How well did you know this?

Not at all

Perfectly

The limit of liability of Coverage D, Damage to Your Auto, under the Personal Auto Policy states that:

A
The limit of liability is reduced by an amount equal to losses paid on the covered auto

B
The limit of liability is reduced by an amount equal to losses paid during the policy term

C
The limit of liability is equal to the limit of liability of Coverage A

D
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

D (Generally, the maximum limit of liability is equal to the actual cash value of the vehicle or vehicles insured. If the damage can be repaired, then the limit of liability is equal to the amount necessary to repair the vehicle or vehicles.)

How well did you know this?

Not at all

Perfectly

Which of the following vehicles is not considered an uninsured vehicle?

A
A vehicle owned by the government

B
A vehicle whose coverage is denied by its insurer

C
A vehicle that disappears after it hits and runs

D
A vehicle insured for less than the state’s minimum required coverage

A (Government vehicles are not included in the definition of an uninsured vehicle.)

How well did you know this?

Not at all

Perfectly

Under medical payments coverage, how long after an accident does the insured have coverage for resulting medical expenses?

A
5 years

B
3 years

C
4 years

D
1 year

B (Expenses must be incurred within 3 years of the accident.)

How well did you know this?

Not at all

Perfectly

Which of these statements is not true about Uninsured Motorist coverage?

A
A driver is considered uninsured when his/her insurer denies a claim

B
A hit-and-run driver is considered uninsured

C
Coverage is automatically provided for the damage to the insured vehicle

D
Bodily injury must be caused by another person who is legally responsible

C (UIM insurance provides coverage for bodily injury only. Property damage would be covered by Part D of the owner’s policy, or by Uninsured Motorist Property Damage, which is optionally available.)

How well did you know this?

Not at all

Perfectly

Which of the following best describes the Towing and Labor Costs endorsement to the Personal Auto Policy?

A
It provides coverage for labor costs incurred after being towed to a repair shop

B
It provides coverage for towing charges incurred when towing a disabled vehicle to the insured’s home

C
It provides coverage for towing a covered auto involved in a collision

D
It provides payment for towing to a garage, or for labor that is performed at the site of a mechanical disablement

D (Towing and Labor Costs Coverage pays for towing a mechanically disabled auto to a garage or for labor performed at the site of disablement.)

How well did you know this?

Not at all

Perfectly

Which of the following statements regarding the Part A limit of liability under the Personal Auto Policy is FALSE?

A
If the loss is covered under more than one Part of the policy, payment will be duplicated

B
The limit of liability is the maximum the policy will pay in any one accident

C
The limit of liability is the maximum the policy will pay regardless of the number of insureds

D
The limit of liability is the maximum the policy will pay regardless of the number of vehicles involved in the accident

A (The Part A limit of liability under the Personal Auto Policy makes clear the maximum amount of insurance that is available in various circumstances.)

How well did you know this?

Not at all

Perfectly

Which of the following is not eligible for a Personal Auto Policy?

A
A van that is used to haul gardening supplies for personal use

B
A 9-passenger station wagon

C
A trailer being used as a farm wagon

D
A private passenger auto used as a taxicab

D (A vehicle used to transport people or goods for hire is not eligible for a Personal Auto Policy. (An exception applies to vehicles used for farming/ranching purposes.))

How well did you know this?

Not at all

Perfectly

The Personal Auto Policy Collision Coverage applies to which of the following?

A
The car you run into, regardless of liability

B
Your car only if you are legally liable

C
Your car and the car you run into

D
Your car, regardless of liability

D (Collision only applies to a vehicle of the insured and is applied regardless of fault.)

How well did you know this?

Not at all

Perfectly

Which vehicle would not be covered under a Personal Auto Policy with no added endorsements? A A motorcycle B A pickup truck with a gross vehicle weight of 7,600 pounds C An eight passenger van with a gross vehicle weight of 8,600 pounds D An owned trailer

A (Vehicles that have fewer than four wheels are excluded from coverage, but may be added to the policy under a Miscellaneous Type Vehicle endorsement.)

The Miscellaneous Type Vehicle Endorsement attached to a Personal Auto Policy allows eligibility of a motorcycle by: A Altering the four-wheel requirement B Amending the definition of 'your covered auto' and 'newly acquired auto' to include any miscellaneous type vehicle C Specifically naming it in the Declarations D Adding motorcycles to the list of eligible vehicles

B (The endorsement amends the definition of covered vehicle to include motorcycles.)

Under the Personal Auto Policy, a family member is defined as which of the following? A A member of the named insured's immediate family, regardless of place of residence B A person using the insured automobile with the named insured's permission C A person related to the named insured who has frequent use of the insured automobile D A person who is a resident of a household and related by blood, marriage or adoption

D (To qualify as a family member, a person must reside in the insured's household.)

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? A Coverage is provided on an excess basis B Coverage is shared pro rata between the insured's policy and the policy on the vehicle C It is not covered because of the care, custody and control clause D Coverage is provided under Part C

A (The owner's coverage is primary and the driver's coverage is excess.)

Part E of the Personal Auto Policy states that after a loss the insured must: A Give notice of the accident to the insurer within 30 days B If the vehicle was stolen, contact the insurer for permission to report the theft to the police C Immediately initiate repairs to the vehicle to protect it from further damage D Protect the auto from further damage

D (In the event of a covered loss, Persons submitting claims to the insurance company are required to: Notify the insurer promptly about how, when, and where the accident or loss occurred; Cooperate with the investigation and settlement of any claim; Promptly send to the insurer any copies of notices or legal papers received; Submit to a physical exam as reasonably required by the insurer; Authorize the insurer to obtain copies of medical reports and other pertinent records; Submit a proof of loss when required by the insurer.)

Which of the following is not eligible for coverage under the Personal Auto Policy? A A pickup B A vehicle with fewer than four wheels C A vehicle being used in a share-the-expense carpool D A van weighing 5,200 pounds

B (The Personal Auto Policy does not provide liability coverage for vehicles with less than four wheels or designed for off-road use, except under certain circumstances.)

The Personal Auto Policy's definition of family member includes: A A member of the named insured's immediate family, regardless of place of residence B Persons related to the Named Insured who have frequent use of the insured automobile C A person related to the named insured who is a resident of a household (including a foster child) D Any person using the insured automobile with the named insured's permission

C (Persons who qualify as a family member must reside in the household.)

Which of the following is not a Supplementary Payment under Part A of the Personal Auto Policy? A Payment for lost earnings up to $200/day B Medical payments for an occupant of an insured vehicle C Up to $250 for the cost of bail bonds D Reasonable expenses incurred at the insurer's request

B (Medical payments are paid out of Part B of the policy and are not considered Supplementary Payments.)

The Limited Mexico coverage provides coverage for how many miles into Mexico? A 50 miles B 10 miles C 25 miles D 100 miles

C (The limit is 25 miles and the endorsement also applies only if the insured's visit to Mexico is for 10 days or less.)

Which statement is false regarding the Personal Auto Policy? A Theft is covered under property damage liability B Collision coverage will cover damage to the insured vehicle regardless of liability C The PAP provides medical payments for up to 3 years D Uninsured Motorist Coverage is provided by Part C

A (Theft is covered under physical damage (Part D), not property damage liability (Part A).)

Which of the following vehicle uses is not excluded under Personal Auto Medical Payments? A Occupying a vehicle as a residence B Livery C Farm use D Racing

C (Farm use is not listed as an exclusion as all other choices are.)

Which of the following are the Territorial Limits of the Personal Auto Policy? A The United States, Puerto Rico, Canada, and Mexico B The United States, Mexico, and Canada C The United States, its territories and possessions, Canada, and Mexico D The United States, its territories and possessions, Puerto Rico, and Canada

D (The policy covers only accidents and losses that occur within the Policy Territory. Mexico does not fall within the policy territory as the policy is written.)

Which of the following does not pay regardless of fault? A Comprehensive B Collision C Medical Payments D Uninsured Motorist Bodily Injury

D (The other party must be legally responsible for bodily injury to an insured that arises out of ownership, maintenance, or use of an uninsured motor vehicle in order for this coverage to apply.)

Which of the following is not true about medical payments under the Personal Auto Policy? A Coverage applies only for medical expenses incurred within one year of the accident B Medical expenses of all persons occupying the insured auto are covered C The coverage limit applies per person, per accident D Medical expenses of the insured and family members are covered

A (Medical Payments coverage includes medical expenses incurred within 3 years from the accident.)

Which of the following is not a valid reason to cancel a personal auto policy after the first 60 days of coverage? A Claims history B Material misrepresentation C Non-payment of premium D Driver's license suspension

A (Claims history is often a reason for non-renewal of an automobile policy, but not for a mid-term cancellation.)

Which of the following vehicles IS covered under Part B - Medical Payments of the PAP? A 3-wheel vehicle used off-road B A van used as a residence C A company car issued to a family member D A car used to carpool with colleagues

D (A share-the-expense vehicle is not considered a public or livery conveyance, and is therefore not excluded under the policy.)

Which statement is false regarding uninsured motorist coverage under a Personal Auto Policy? A Coverage does not apply to any vehicle being used to carry property or persons for a fee B Coverage includes injuries suffered by someone using a covered vehicle without permission C Covered persons include the named insured, family members and any other person occupying the covered auto D Coverage does not apply to a vehicle used primarily for use off public roads

B (Coverage does not apply when a person is using the vehicle without permission.)

Uninsured Motorist Coverage under a Personal Auto Policy covers which of the following vehicles? A A vehicle being driven without permission B A vehicle used primarily for use off public roads C Any vehicle being used to carry property or persons for a fee D A vehicle owned by the named insured

D (Coverage does not apply to non covered vehicles, nor when a person is using the vehicle without permission.)

Which of the following is not a Supplementary Payment under Part A of the Personal Auto Policy? A Medical payments for an occupant of an insured vehicle B Payment for lost earnings up to $200/day C Up to $250 for the cost of bail bonds D Reasonable expenses incurred at the insurer's request

A (Medical payments are paid out of Part B of the policy and are not considered Supplementary Payments.)

Which of the following is correct regarding Other Insurance under Part A of the Personal Auto Policy? A There is no coverage for non-owned vehicles if there is other coverage applicable to such vehicles B If there is other liability coverage applicable to the insured auto, the policy will pay the proportion that the limit of liability bears to the total of all limits C The Personal Auto Policy is the primary policy in all cases of duplicate coverage D If there is other liability coverage applicable to the insured auto, the policy will share the loss with the other policy on an excess basis

B (Coverage A of the Personal Auto Policy shares with other applicable liability insurance on a proportional basis. However, it is excess over other insurance on non-owned autos.)

Which of these statements is not true about Uninsured Motorist coverage? A Coverage is automatically provided for the damage to the insured vehicle B A hit-and-run driver is considered uninsured C A driver is considered uninsured when his/her insurer denies a claim D Bodily injury must be caused by another person who is legally responsible

A (UIM insurance provides coverage for bodily injury only. Property damage would be covered by Part D of the owner's policy, or by Uninsured Motorist Property Damage, which is optionally available.)

Under the Personal Auto Policy, medical payments do not apply to passengers occupying which of the following? A A non-owned vehicle B A van being used for shared car pools C A van used in the insured's business in the course of employment D A newly acquired vehicle

C (Workers' Compensation coverage is an exclusive remedy for injuries incurred in the course of employment. Therefore, these injuries are excluded under Medical Payments coverage.)

Which of the following is true about the Insuring Agreement of Part D under the Personal Auto Policy? A It sets forth the coverage of transportation expenses B It outlines the insured's duties after a loss or accident C It states that the policy will pay for direct and accidental physical loss to the covered auto regardless of fault D It states that Comprehensive coverage includes upset of a covered vehicle

B (The Insuring Agreement of Part D states that the insurer will pay for loss to the covered auto, including its equipment, minus any applicable deductible.)

When an auto has two auto policies with the same insurer, the insurer's liability would not exceed: A The highest limit of the two policies B The limit of the last one purchased C The combined limit of the two policies D The limit of the first one purchased

A (Coverage will not be duplicated, so the policy with the highest limit applies.)

Under a PAP, liability resulting from the insured's use of a non-owned auto is: A Shared pro rata between the insured's policy and the policy on the vehicle B Provided on a primary basis C Not covered because of the Care, Custody and Control Clause D Provided on an excess basis

D (The owner's coverage is primary and the driver's coverage is excess.)

Which of the following is correct regarding Other Insurance under Part A of the Personal Auto Policy? A If there is other liability coverage applicable to the insured auto, the policy will pay the proportion that the limit of liability bears to the total of all limits B There is no coverage for non-owned vehicles if there is other coverage applicable to such vehicles C The Personal Auto Policy is the primary policy in all cases of duplicate coverage D If there is other liability coverage applicable to the insured auto, the policy will share the loss with the other policy on an excess basis

A (Coverage A of the Personal Auto Policy shares with other applicable liability insurance on a proportional basis. However, it is excess over other insurance on non-owned autos.)

Which of the following is a duty required of the insured in the event of a loss under the PAP? A Give notice of the accident to the insurer within 5 days B If the vehicle was stolen, contact the insurer for permission to report the theft to the police C Immediately initiate repairs to the vehicle to protect it from further damage D Allow an inspection and appraisal of the damage before an auto is repaired

D (Under Part E - Duties After a Coverage D Loss, the insured must also allow and inspection an appraisal before the damage is repaired and promptly notify the police if the car was stolen.)

Policyholder B has a PAP 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? A $305,000 BI and $55,000 PD B $305,000 BI and $50,000 PD C $280,000 BI and $50,000 PD D $300,000 BI and $50,000 PD

C (The BI claims of $80,000 and $100,000 will be paid in full. The $125,000 claim exceeds the per person limit and will only be paid up to $100,000, resulting in total BI payments of $280,000. The PD payments will be capped at the policy limit of $50,000 per accident.)

A leased auto is an eligible vehicle if the lease contract is for a continuous period of at least how many months? A 12 B 6 C 9 D 3

B (A leased vehicle under a contract for a continuous period of at least 6 months by the insured is an eligible vehicle.)

Which of the following is not true about medical payments under the Personal Auto Policy? A Medical expenses of the insured and family members are covered B Medical expenses of all persons occupying the insured auto are covered C The coverage limit applies per person, per accident D Coverage applies only for medical expenses incurred within one year of the accident

D (Medical Payments coverage includes medical expenses incurred within 3 years from the accident.)

Which of the following claims would be insured under Uninsured Motorists Coverage? A A thief stole the insured's car and was paralyzed after being struck by a drunk driver B The insured's resident son suffered severe injuries after being rear-ended by an uninsured driver C The insured was driving his uninsured car at the time of the accident D An insured is sued and the other party is awarded an injury settlement and punitive damages

B (Resident family members are covered by Part C if they are injured by an uninsured driver who is legally responsible for an accident.)

B (Coverage does not apply when a person is using the vehicle without permission.)

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? A It is not covered because of the care, custody and control clause B Coverage is provided under Part C C Coverage is provided on an excess basis D Coverage is shared pro rata between the insured's policy and the policy on the vehicle

C (The owner's coverage is primary and the driver's coverage is excess.)

All of the following are true about a newly acquired additional vehicle, except: A It must be reported to the insurer within 14 days of purchase B It can be used to transport goods for hire if receipts are less than $10,000 C It may be used on a farm D Coverage is as broad as the broadest coverage on any vehicle under the policy

B (Vehicles used to carry goods for hire cannot be insured under a Personal Auto Policy.)

The Legal Action Against Us under Part F - General Provisions of the Personal Auto Policy, states which of the following? A Legal action brought against the insurer must be brought within 90 days of the loss B Legal action brought against the insurer must be brought within 180 days of the loss C Legal action against the insurer is permitted only when arbitration is unsuccessful D Legal action may not be brought against the insurer until the insured has complied with all the terms of the policy

D (The insured first must comply with all the terms of the policy before any legal action may be taken against the insurer.)

Which of the following statements about claim payment regarding a stolen vehicle is FALSE? A An insurance company may choose to keep or return a recovered stolen car B An insurance company can decide whether to pay cash for, replace, or repair the vehicle C If the insurer returns a stolen vehicle, the insurer does not have to pay claims for vehicle damage D A claim payment will include any applicable sales tax

C (If the insurance company returns a stolen car to the insured, it must pay for any damage that occurred as a result of the theft.)

Which of the following Part D claims would be denied under the Personal Auto Policy? A Earthquake damage to the covered auto B Loss to permanently installed sound reproduction equipment of the covered auto C Loss to electronic ignition equipment of the covered auto D Loss to the covered auto caused by road damage to tires

D (While the insuring agreement of Part D is very broad, many perils are excluded, including wear and tear, freezing, mechanical or electric breakdown, or road damage to tires.)

# Choose the physical damage claim that would be covered under the Personal Auto Policy. A Loss due to war B Mechanical breakdown C Loss due to radioactive contamination D Malicious mischief to the tires

D (Malicious mischief is covered under Other Than Collision. The other items are excluded.)

Under Part A of the Personal Auto policy, which of the following would be covered? A Damage to a neighbor's lawn mower in the care of the insured B Damage to property being transported by the insured C Damage to the home the insured owns D Damage to a parked car

D (Liability coverage is not provided for: Damage to property owned, being transported, or in the care of the insured.)

Which of the following claims would be covered by Collision Coverage under Part D of the Personal Auto Policy? A Damage to the auto caused by collision with an animal on the roadway B Damage to the auto caused by objects blown into it during a severe windstorm or tornado C Breakage of the windshield caused by collision with a stone or other missile D Damage to the insured auto's bumper when the auto crashed into a tree

D (Part D of the policy specifically stipulates certain causes of loss that are not considered collision. They include missiles or falling objects, fire, theft, explosion, windstorm, contact with a bird or animal, among others.)

Which of the following is covered under a Personal Auto Policy? A Liability for damage caused by a vehicle designed mainly for off road use B Use of a non-owned vehicle used without permission C A vehicle driven with permission by an unlicensed driver D Intentional damage done by the insured

C (The policy defines insured as used in Part A, as the named insured or another person using the covered auto with permission, even if not licensed.)

Liability coverage under the PAP will cover which of the following? A Motorcycle B Company car C A van used to deliver newspapers D Non-owned golf cart

D (Vehicles designed mainly for use off public roads are excluded, except for non-owned golf carts.)

All of the following are true about a newly acquired additional vehicle, except: A Coverage is as broad as the broadest coverage on any vehicle under the policy B It may be used on a farm C It can be used to transport goods for hire if receipts are less than $10,000 D It must be reported to the insurer within 14 days of purchase

C (Vehicles used to carry goods for hire cannot be insured under a Personal Auto Policy.)

Which of the following is not a valid reason to cancel a personal auto policy after the first 60 days of coverage? A Non-payment of premium B Driver's license suspension C Material misrepresentation D Claims history

D (Claims history is often a reason for non-renewal of an automobile policy, but not for a mid-term cancellation.)

Which of the following is true of supplementary payments under Part A of the Personal Auto Policy? A They are paid only once during the policy term B They are paid as supplementary benefits only after the limit of liability is exhausted C Any payments made reduce the liability limits by a like amount D They are paid in addition to the liability limits of the policy

D (The supplementary payments of the Personal Auto Policy provide payment in addition to the limit of liability for the incidental expenses commonly associated with liability claims.)

Which of the following is not true about medical payments under the Personal Auto Policy? A Medical expenses of all persons occupying the insured auto are covered B The coverage limit applies per person, per accident C Coverage applies only for medical expenses incurred within one year of the accident D Medical expenses of the insured and family members are covered

C (Medical Payments coverage includes medical expenses incurred within 3 years from the accident.)

Under Part F of the Personal Auto Policy, which of the following is correct when there are two or more auto policies issued by the insurer on the same auto? A This policy will be excess if the other policy is in a different insurer B Each policy will pay the loss independently of the other C The maximum that will be paid is equal to the limit of the policy with the higher limit of liability D Each policy will share equally in the loss

C (The Two or More Auto Policies provision of the Personal Auto Policy is intended to prevent the stacking of limits if more than one policy issued by the insurer applies to the same accident.)

Which of the following is included in the Personal Auto Policy's coverage territory? A Anywhere location worldwide B The U.S., its territories, Canada, and Puerto Rico C The U.S., its territories, Canada, Puerto Rico, and Mexico D The U.S. and its territories only

B (The policy only provides coverage for accidents and losses that occur during the policy period and within the policy territory. The policy territory is the United States of America, its territories and possessions, Puerto Rico, and Canada, and while being transported between their ports. Mexico is NOT in the policy territory.)

Which of the following persons cannot collect a claim payment under Uninsured Motorist coverage? A A pedestrian struck by a hit-and-run vehicle B The owner of a parked car struck by a falling object C The owner of a car struck by an uninsured motorist D The owner of a car that was struck by a vehicle whose auto carrier was insolvent at the time of the accident

B (UIM insurance provides coverage for bodily injury only. Property damage would be covered by Part D of the owner's policy, or by Uninsured Motorist Property Damage, which is optionally available.)

Which of the following is an insured's duty in the event of loss under the PAP? A Contact the at-fault party B Call the police if legal papers are received C Promptly notify the police in the event of a hit-and-run accident D Refer the claim adjuster to an attorney

C (The insured must cooperate with the insurer, promptly notify the insurance company of a loss, and immediately send legal papers to the insurer.)

Which of the following is not a Supplementary Payment under Part A of the Personal Auto Policy? A Reasonable expenses incurred at the insurer's request B Medical payments for an occupant of an insured vehicle C Up to $250 for the cost of bail bonds D Payment for lost earnings up to $200/day

B (Medical payments are paid out of Part B of the policy and are not considered Supplementary Payments.)

Under a PAP, liability resulting from the insured's use of a non-owned auto is: A Shared pro rata between the insured's policy and the policy on the vehicle B Provided on a primary basis C Provided on an excess basis D Not covered because of the Care, Custody and Control Clause

C (The owner's coverage is primary and the driver's coverage is excess.)

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 $3,000 if Company A's Limit of Liability is $100,000 and Company B's is $200,000? A $500 B $3,000 C $2,000 D $1,000

C (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 $3,000 = $2,000.)

Which of the following is a duty required of the insured in the event of a loss under the PAP? A If the vehicle was stolen, contact the insurer for permission to report the theft to the police B Allow an inspection and appraisal of the damage before an auto is repaired C Immediately initiate repairs to the vehicle to protect it from further damage D Give notice of the accident to the insurer within 5 days

B (Under Part E - Duties After a Coverage D Loss, the insured must also allow and inspection an appraisal before the damage is repaired and promptly notify the police if the car was stolen.)

Which of the following statements about claim payment regarding a stolen vehicle is FALSE? A An insurance company can decide whether to pay cash for, replace, or repair the vehicle B An insurance company may choose to keep or return a recovered stolen car C A claim payment will include any applicable sales tax D If the insurer returns a stolen vehicle, the insurer does not have to pay claims for vehicle damage

D (If the insurance company returns a stolen car to the insured, it must pay for any damage that occurred as a result of the theft.)

An insured accidentally backs into the neighbor's son on his skateboard. The son has medical expenses and there is damage to the skateboard. Which sections of the insured's policy will pay? A Bodily injury and property damage B Medical payments and collision C Personal injury and property damage D Bodily injury and collision

A (Bodily injury liability coverage would pay the medical expenses and property damage liability would pay for the skateboard.)

Which of the following is not considered an uninsured motorist vehicle under the Personal Auto Policy? A A vehicle insured by a bankrupt insurance company B A vehicle for which there is no liability policy C A vehicle newly acquired by the named insured that has not been reported to the insurer D A hit and run vehicle

C (A vehicle owned by the insured would not fit the definition of an uninsured vehicle.)

Which statement is false regarding the Personal Auto Policy? A Uninsured Motorist Coverage is provided by Part C B The PAP provides medical payments for up to 3 years C Collision coverage will cover damage to the insured vehicle regardless of liability D Theft is covered under property damage liability

D (Theft is covered under physical damage (Part D), not property damage liability (Part A).)

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? A Each person injured in any one accident B All claims during the policy term C Each person injured during the policy term D All persons injured in any one accident

A (The Medical Payments limit is a per person limit that applies to each accident.)

Which of the following does not pay regardless of fault? A Comprehensive B Collision C Uninsured Motorist Bodily Injury D Medical Payments

C (The other party must be legally responsible for bodily injury to an insured that arises out of ownership, maintenance, or use of an uninsured motor vehicle in order for this coverage to apply.)

All of the following are excluded under Part A of the Personal Auto Policy, except: A Intentional damage caused by the insured B Use of a non-owned vehicle without permission C Damage caused by a vehicle designed mainly for off road use D A vehicle driven by an unlicensed driver

D (If a covered driver is using the covered auto with permission, the driver is still covered even if not properly licensed.)

The Named Non-owner endorsement: A Covers only the person named on the endorsement B Does not supply coverage to meet a state's financial responsibility law requirements C Does not apply to a rented vehicle D Provides only liability coverage

A (The Named Non-Owned endorsement provides liability, medical payments, and UM coverage for a person who does not own, but often borrows or rents a car.)

Which vehicle is covered under Part B - Medical Payments of the Personal Auto Policy? A A vehicle used for car pools B A 3-wheel vehicle C A family member's company car D A vehicle used as a residence

A (A share-the-expense vehicle is not considered a 'livery' or 'public conveyance' vehicle, and would be covered.)