Auto Insurance

Question 1

What Personal Auto coverage would pay for damages to a covered auto caused by a collision with a deer?

Answer 1

Other than collision (comprehensive)

Question 2

Who does the Garage Coverage form insure?

Answer 2

Auto dealers, service stations, auto repair shops.

Question 3

What are the 4 categories of uninsured motor vehicles?

Answer 3

1) No insurance or liability bond.
2) Insurance is less than what’s required by the financial responsibility laws.
3) A hit-and-run accident where the driver cannot be identified.
4) The insurer denies coverage or becomes solvent.

Question 4

Underinsured Motorist (UIM) coverage will pay the difference between which two limits?

Answer 4

The insured’s UIM limits and the at-fault driver’s insurance bodily injury limits.

Question 5

Who is considered insured under Part A: Liability of a personal auto policy?

Answer 5

The vehicle owner or his/her family member, or any person using the covered auto with permission.

Question 6

If an auto policy has limits of 30/50/25, what is the maximum amount the policy will pay for injuries to one person in a single accident?

Answer 6

$30,000

Question 7

What is the limit of liability in Part D: Coverage for Damage to Your Auto?

Answer 7

The lesser of the actual cash value of the vehicle or the amount needed to repair or replace the vehicle.

Question 8

Coverage for medical payments for a Personal Auto Policy applies to expenses following a covered accident that are incurred and services rendered within what time period?

Answer 8

3 years

Question 9

What would be considered a newly acquired auto?

Answer 9

A vehicle acquired by the insured during the policy period.

Question 10

What is combined single limit in personal auto policies?

Answer 10

A single limit of coverage for bodily injury and property damage in one accident.

Question 11

How does the Auto Medical Coverage endorsement modify the auto policy?

Answer 11

It adds medical payment coverage to a commercial auto policy.

Question 12

When does Underinsured Motorist coverage apply?

Answer 12

When the motorist at fault in an accident, but the limits of his/her auto insurance are not sufficient to cover the bodily injury to another motorist.

Question 13

What Personal Auto Coverage would pay for the insured’s travel expenses and loss of earnings while the insured is involved in the settlement process of a covered loss?

Answer 13

Part A: Liability

Question 14

What are the coverage forms used in commercial auto insurance?

Answer 14

1) Business Auto Coverage Form
2) Business Auto Physical Damage Coverage Form
3) Garage Coverage Form
4) Motor Carrier Coverage Form

Question 15

What coverages are available in the physical damage section of the personal auto policy?

Answer 15

Collision and other-than-collision coverages.

Question 16

What does the term “you” refer to in a personal auto policy?

Answer 16

The named insured shown in the declarations, and the insured’s spouse (if resident of the same household)

Question 17

If an insured is injured while driving his own car, what coverage in his personal auto policy will pay for the loss?

Answer 17

Part B: Medical Payments

Question 18

What type of losses are indicated by the split limits in an auto insurance policy?

Answer 18

1) Bodily injury per person
2) Bodily injury per accident
3) Property damage per accident

Question 19

What is a covered auto?

Answer 19

A vehicle shown in the policy declarations

Question 20

What type of auto coverage will apply in a hit-and-run accident where the driver cannot be identified?

Answer 20

Uninsured Motorist

Question 21

If an auto policy has split limits of 30/50/25, how much will the policy pay for property damage in a single accident?

Answer 21

$25,000

Question 22

When does Uninsured Motorist coverage apply?

Answer 22

When the party is legally liable but has no insurance

Question 23

How much will a physical damage policy pay for transportation expenses due to theft of a covered auto?

Answer 23

The policy will pay up to $20 per day, up to a maximum of $600, for transportation expenses incurred by the insured.

Question 24

What do numerical symbols represent in auto policies?

Answer 24

They define the type of vehicle insured for specific coverages.

Question 25

If an auto policy has liability limits of 40/60/20, what would be the equivalent combined single limit?

Answer 25

$80,000 (combined total coverage for bodily injury and property damage)

Question 26

A vehicle rented from a commercial rental company is known as what type of auto?

Answer 26

Hired auto

Question 27

What coverage is provided in the liability section of the business auto coverage from?

Answer 27

The policy will pay for injury or property damage to third parties.

Question 28

In Personal Auto Policy, to what geographical region does the out-of-state coverage apply?

Answer 28

Any U.S. territory, as well as Canada

Question 29

What are the 2 parts of the Garage Liability Coverage?

Answer 29

Garage Operations - Covered Autos

Garage Operations - Other Than Covered Autos

Question 30

What losses are excluded from coverage in the liability section of the Personal Auto Policy?

Answer 30

Intentional injury or damage
Damage to property owned or transported by the insured
Use of vehicle as a public conveyance
Use of vehicle without permission