Auto Insurance Flashcards by Kerri Burriss

On the Garage Coverage Form, what is section II?

Liability (Garage Operations – Other than covered autos, Garage Operations – Covered autos)

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On the Garage Coverage Form, what is section III

Garagekeepers (Comprehensive, Specified cause of loss, Collision)

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On the Garage Coverage Form, what is section IV?

Physical Damage (similar to Business Auto Coverage Form with additional exclusions)

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On the Garage Coverage Form, what is section V?

Garage Conditions (similar to Business Auto coverage form)

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Which one of the following symbols used in business auto coverage is correctly described?
A. Symbol 7 – hired autos only
B. Symbol 9 – nonowned autos only
C. Symbol 1 – owned auto only
D. Symbol 2 – owned autos subject to no-fault

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An Insured with limits lower than required by law, a teenager who has not purchased coverage for his car, one insured by a company who has become insolvent, a hit and run when driver can’t be found are all considered to be
A. Candidates for coverage by the AAIP of SC
B. In compliance with the automobile financial law
C. Uninsured motorists
D. Underinsured motorists

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In South Carolina, which of the following coverages would be considered optional coverage with regards to a personal auto policy?
A.	Underinsured motorist coverage
B.	Bodily injury liability
C.	Property damage liability
D.	Uninsured motorist coverage

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The individual named insured endorsement under a commercial auto policy provides coverage for which of the following?
A. The sole proprietor of the business and his or her spouse only
B. The sole proprietor of the business and his or her family members
C. The sole proprietor of the business only
D. The sole proprietor of the business and his or her employees

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With regards to the personal auto policy, in the event of a claim or loss, the insured is required to do all of the following EXCEPT
A. Promptly contact the police if the accident was a hit-and-run
B. Immediately report to an emergency room for medical examination
C. Notify the insurer as soon as possible with a description of the accident
D. Protect the insured auto from further damage

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What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement?
A.	$25
B.	$50
C.	$75
D.	$100

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Driver A has a personal auto policy with Part C: UM/UIM limits of 100/300.  He is inured by Driver B who has Part A: Bodily Injury Liability limits of 50/100.  It is determined that Driver B is at fault for the accident.  Driver A has $125,000 in medial expenses.  How much will his Part C: UM/UIM coverage pay?
A.	$125,000
B.	$75,000
C.	$50,000
D.	$25,000

C (It will pay the difference between theinsured’s UIM limits and the at-fault driver’s bodily injury limits, so in this scenario, $100, 000 of the insured’s coverage minus $50,000 of the other driver’s)

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While an insured’s covered auto is in the repair shop following damage caused by a collision, the insured would have coverage for which of the following vehicles under a personal auto policy?
A. Any vehicle not owned by the insured, but furnished for use while the covered auto is out of normal use because of repair
B. Any vehicle used by the insured without the reasonable belief that the insured is entitled to use such a vehicle
C. Any auto furnished for the insured’s regular use, but not named on the policy
D. Any vehicle while located inside a racing facility for the purpose of racing

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Which of the following is a common exclusion found in Part D:  Coverage for Damage to Your Auto of a PAP?
A.	Towing and Labor
B.	Mechanical breakdown
C.	Glass breakage
D.	Riot or civil commotion

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Which of the following losses would be covered under the property damage liability coverage of a personal auto policy?
A. The insured’s vehicle is damaged when it collides with a deer
B. A passenger in the insured’s vehicle is injured following an accident caused by the insured
C. The insured damages a rented garage when he failed to stop in time
D. A temporary substitute vehicle is damaged while the insured is driving it

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When would UM coverage apply?
A. Any time the insured is involved in an accident with an uninsured driver
B. Only when the insured is legally liable
C. Only when the other party is legally liable but has no insurance
D. Only when the insured drives an uninsured car

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An insured has a personal auto policy with both comprehensive and collision coverage.  His car is stolen and recovered 5 days later.  If the insured claims transportation expenses of $20 per day, how much will his policy pay?
A.	$45
B.	$60 
C.	$75
D.	$100

B (The policy will pay $20 per day after 48 hours, not to exceed 30 days in total)

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Which of the following is included under the physical damage coverage of a personal auto policy?
A. Custom furnishings or equipment in a pickup or van
B. Sound reproduction equipment permanently installed in the covered auto
C. A covered auto that is seized and destroyed by a government authority
D. A cellular phone located in a locked vehicle

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Which of the following would NOT qualify as a hired auto?
A. An auto rented for personal use
B. An auto borrowed from an employee
C. An auto hired by an employer
D. An auto leased from a commercial rental company

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Which of the following would NOT be covered under the liability section of a personal auto policy?
A. After a party, the insured causes an accident and is charged with driving under the influence of alcohol
B. Bodily injury is caused by the insured’s negligence while driving a three-wheel all-terrain vehicle
C. A trailer the insured vehicle is towing accidentally comes loose and cause injury to another person
D. A friend of your son is using the insured vehicle with the named insured’s permission and causes an accident

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In South Carolina, every automobile insurance policy must include liability coverage with limits not less than 
A.	$15,000/$30,000/$15,000
B.	$25,000/$50,000/$25,000
C.	$25,000/$50,000/$10,000
D.	$15,000/$30,000/$10,000

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Which of the following endorsements is used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle?
A. Drive other car
B. Additional insured – lessor
C. Hired autos specified as covered autos you own
D. Individual named insured

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Which of the following symbols is available to an insured with vehicles subject to no-fault coverage?
A.	Symbol 5
B.	Symbol 6
C.	Symbol 7
D.	Symbol 9

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What is the auto symbol used for any auto, including owned, leased, hired, or borrowed autos (used only for liability coverage)?

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What is the auto symbol used for owned autos only?

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What is the auto symbol used for owned private passenger autos only?

What is the auto symbol used for owned autos, other than private passenger autos only?

What is the auto symbol used for owned autos subject to no-fault?

What is the auto symbol used for owned autos subject to a compulsory uninsured motorist law?

What is the auto symbol used for specifically described autos only?

What is the auto symbol used for hired autos only (leased, hired, rented, or borrowed other than from employees, partners or members of an LLC?

What is the auto symbol used for nonowned autos only (autos that are not leased, hired, rented or borrowed. Coverage is included for autos owned by employees, partners and members, if an LLC, if used in the insured’s business or personal affairs)?

What is the auto symbol used for mobile equipment subject to compulsory, financial responsibility, or other motor vehicle insurance law only?

``` Which endorsement under the commercial auto policy provides the insured’s employees additional protection while using a vehicle not owned, hired, or borrowed for insured business? A. Hired autos B. Employees as insureds C. Drive other car D. Deductibles liability ```

Why don’t commercial auto coverage forms automatically include medical payment coverage? A. Commercial auto coverage is for damage to vehicles only B. Any person occupying a commercial vehicle must have a personal auto policy to cover any medical payments that result from an accident C. Often, any person occupying a commercial vehicle would be covered under a workers compensation policy D. The business that owns vehicles must be self-insured for medical payment coverage

Which of the following would be considered an insured under a business auto coverage form? A. The owner or anyone else from whom the named insured hires or borrows a covered auto B. Anyone using a covered auto while working in a business of selling, servicing, repairing, or parking autos if it is not the named insured’s business C. A partner of the named insured for any covered auto owned by that person or a member of his or her household D. Anyone while using, with permission, a covered auto owned by the named insured

A passenger in a friend’s car is injured while getting into the car. Which of the following statements would apply if both the passenger and the driver had medical payments coverage under a personal auto policy? A. Both policies will share equally in the loss B. The driver’s policy would be primary C. The driver’s policy will act in excess of the passenger’s policy D. The passenger’s policy would be primary

``` The designation symbols used in commercial auto policies can be found in which policy section? A. Liability Coverage B. Definitions C. Conditions D. Covered Auto ```

The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT A. The insured is injured while exiting a friend’s mobile home B. The insured is injured by a motor vehicle while crossing the street C. The insured’s child sustains injuries when the car she is in accidentally rolls down a hill D. A friend is injured while driving the insured’s vehicle without permission

With respect to the personal auto policy, which of the following vehicles could be classified as a nonowned auto? A. A vehicle rented for the insured’s personal use B. A vehicle that is titled to another person, but is being used with permission by an insured C. A vehicle leased to the named insured for 12 months by a leasing company D. A vehicle that is titled and insured by the named insured, but is driven principally by the named insured’s son, who is resident of the household

``` Which of the following auto coverages would pay for the insured’s travel expenses and loss of earnings while involved in the settlement process of a covered loss? A. Comprehensive coverage B. Collision coverage C. Liability coverage D. Medical payments ```

``` In the split limit coverage in personal auto policies, which limit indicates the maximum amount the policy will pay for bodily injury per person? A. 1st limit B. 2nd limit C. 3rd limit D. Combined limit ```

``` Which of the following would be covered under the Garage Liability Coverage Form? A. Insured’s business premises B. Product recalls C. Fellow employees D. Loss of use ```

With respect to auto insurance, the term owned autos includes all of the following EXCEPT A. Any private passenger auto leased to the named insured for a period of more than 6 months B. A pickup or van titled to and used in the named insured’s business C. Any private passenger auto titled to the named insured D. A pickup or van acquired by the named insured during the policy period

An insured owns and operates a ranch. The insured has several vehicles that are used in the ranching operation and for personal use. Which of the following could NOT be insured under a personal auto policy? A. A two-ton gain truck with a 6,500-pound capacity B. A two-wheeled trailer designed to be towed by the station wagon C. A farm pickup with 1,000-pound capacity D. A station wagon that is used personally

``` Tom’s Truck Service’s vehicle is stolen. The policyholder may obtain coverage for transportation expenses subject to which of the following limits? A. $15 per day; $450 maximum B. $25 per day; $450 maximum C. $20 per day; $600 maximum D. $15 per day; $300 maximum ```

``` In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for A. Comprehensive coverage B. Collision coverage C. Uninsured motorist coverage D. Towing coverage ```

``` An employee drives a company auto but does not own a vehicle herself. What endorsement could be added to the insurance policy covering the company auto that would provide coverage to the employee when she drives someone else’s car for her personal use? A. Bobtail coverage B. Rental car coverage C. Personal injury protection D. Drive other car coverage ```

``` An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage? A. $14,000 B. $15,000 C. $5,000 maximum for the accident D. $5,000 minus the policy deductible ```

A (The limit is not more than $5,000 per person, per accident)

``` An insured has an auto liability of 25/50/15. The insured is involved in an accident caused by her negligence and is held legally liable for bodily injuries of 3 persons in the other auto as follows: “A” $15,000, “B” $30,000, and “C” $35,000. How much will her insurer pay in total for all injuries? A. $50,000 B. $105,000 C. $25,000 D. $30,000 ```

A (The first limit shown is the most the policy will pay for injuries to any one person. The second limit is the most the policy will pay for all injuries if more than one person is injured in a single accident. The third limit is the most the policy will pay for property damage resulting from a single accident.)

What is NOT an insured for liability on a BAP (Business Auto Policy? A. Anyone using a covered auto with permission B. Anyone liable for the conduct of the insured C. The named insured in any covered auto D. The owner of a car the insured borrows

``` What type of coverage protects the insured in an accident caused by a driver with insufficient coverage? A. Motor vehicle catastrophe coverage B. Underinsured motorist C. Uninsured motorist D. Driver’s calamity coverage ```

``` In which of the following sections of a commercial auto policy will you find specific information about the policy period? A. Additional coverages B. Selected endorsements C. Definitions D. Conditions ```

``` For auto policies with split limits of 25/50/25, what amount is required for bodily injuries to one person in a single accident? A. $25,000 B. $50,000 C. $75,000 D. $100,000 ```

``` Under a personal auto policy, in which of the following locations would a vehicle primarily garaged in California be covered? A. Any other state B. Anywhere in the world C. Mexico D. Only in California ```

All of the following are true regarding physical damage coverage EXCEPT A. The policy will pay up to $20 per day up to a maximum of $600 for rental transportation B. The insurer will pay for direct and accidental loss to a covered auto minus any applicable deductible C. The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle D. Losses to nonowned autos will be covered the same as the broadest coverage available for any covered auto, except nonowned trailers are limited to $1,500

The bankruptcy provision found in the personal auto policy states that bankruptcy of the insured A. Will suspend the physical damage coverage B. Will waive all future premiums C. Will not relieve the insurer of its policy obligations D. Is one of the reasons an insurer can cancel the policy

``` If a company turns you down for automobile insurance, how many days do you have to file to have the action reviewed by the Director of Insurance? A. 60 days B. 30 days C. 10 days D. 15 days ```

``` According to SC law, comprehensive deductibles do not apply to A. Falling or flying objects B. Damage done when hitting animals C. Safety glass D. V&MM losses ```

Which of the following losses would be covered under the property damage liability coverage of a personal auto policy? A. The insured’s vehicle is damaged when it collides with a deer B. A passenger in the insured’s vehicle is injured following an accident caused by the insured C. The insured damages a rented garage when he failed to stop in time D. A temporary substitute vehicle is damaged while the insured is driving it

The insured is involved in an auto accident in another state. The state has a financial responsibility law that specifies limits of liability higher than the limits shown in the declarations. What amount will the insured’s policy pay? A. Higher limits B. Lower limits C. The insurer will not pay for out-of-state accidents D. Only the limits specified in the policy

All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT A. Premiums on appeal bonds in any suit the insurer defends B. Up to $250 for bail bonds required because of a covered accident C. Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident D. Up to $200 a day for loss of earnings due to attendance at hearings or trials

An uninsured motor vehicle includes all of the following EXCEPT A. The vehicle has no liability bond or insurance in force B. A vehicle being used for public livery C. The accident was a hit-and-run D. The insurance company denies coverage