Auto Insurance Flashcards
What Personal Auto coverage would pay for damages to a covered auto caused by a collision with a deer?
Other than collision (comprehensive)
Who does the Garage Coverage form insure?
Auto dealers, service stations, auto repair shops.
What are the 4 categories of uninsured motor vehicles?
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.
Underinsured Motorist (UIM) coverage will pay the difference between which two limits?
The insured’s UIM limits and the at-fault driver’s insurance bodily injury limits.
Who is considered insured under Part A: Liability of a personal auto policy?
The vehicle owner or his/her family member, or any person using the covered auto with permission.
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?
$30,000
What is the limit of liability in Part D: Coverage for Damage to Your Auto?
The lesser of the actual cash value of the vehicle or the amount needed to repair or replace the vehicle.
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?
3 years
What would be considered a newly acquired auto?
A vehicle acquired by the insured during the policy period.
What is combined single limit in personal auto policies?
A single limit of coverage for bodily injury and property damage in one accident.
How does the Auto Medical Coverage endorsement modify the auto policy?
It adds medical payment coverage to a commercial auto policy.
When does Underinsured Motorist coverage apply?
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.
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?
Part A: Liability
What are the coverage forms used in commercial auto insurance?
1) Business Auto Coverage Form
2) Business Auto Physical Damage Coverage Form
3) Garage Coverage Form
4) Motor Carrier Coverage Form
What coverages are available in the physical damage section of the personal auto policy?
Collision and other-than-collision coverages.
What does the term “you” refer to in a personal auto policy?
The named insured shown in the declarations, and the insured’s spouse (if resident of the same household)
If an insured is injured while driving his own car, what coverage in his personal auto policy will pay for the loss?
Part B: Medical Payments
What type of losses are indicated by the split limits in an auto insurance policy?
1) Bodily injury per person
2) Bodily injury per accident
3) Property damage per accident
What is a covered auto?
A vehicle shown in the policy declarations
What type of auto coverage will apply in a hit-and-run accident where the driver cannot be identified?
Uninsured Motorist
If an auto policy has split limits of 30/50/25, how much will the policy pay for property damage in a single accident?
$25,000
When does Uninsured Motorist coverage apply?
When the party is legally liable but has no insurance
How much will a physical damage policy pay for transportation expenses due to theft of a covered auto?
The policy will pay up to $20 per day, up to a maximum of $600, for transportation expenses incurred by the insured.
What do numerical symbols represent in auto policies?
They define the type of vehicle insured for specific coverages.
If an auto policy has liability limits of 40/60/20, what would be the equivalent combined single limit?
$80,000 (combined total coverage for bodily injury and property damage)
A vehicle rented from a commercial rental company is known as what type of auto?
Hired auto
What coverage is provided in the liability section of the business auto coverage from?
The policy will pay for injury or property damage to third parties.
In Personal Auto Policy, to what geographical region does the out-of-state coverage apply?
Any U.S. territory, as well as Canada
What are the 2 parts of the Garage Liability Coverage?
Garage Operations - Covered Autos
Garage Operations - Other Than Covered Autos
What losses are excluded from coverage in the liability section of the Personal Auto Policy?
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
