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LM > Auto Insurance > Flashcards

Auto Insurance Flashcards

1
Q

What are the coverage parts of auto insurance?

A

Liability
Medical payments
Uninsured motorists
Damage to your auto
Duties after loss
General provisions

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2
Q

What is the definition of an auto policy?

A

You have a private passenger auto, pickup truck or van - temporary substitute - or owned trailer

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3
Q

What is the definition of covered auto?

A

Any vehicle shown in the declarations, including newly acquired auto or trailer

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4
Q

What is a newly acquired auto?

A

Vehicles acquired during the policy period

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5
Q

What is collision ?

A

A covered vehicle or non owned auto is impacted by another vehicle or object.

Any time your car hits something

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6
Q

What is other than collision ?

A

Damage to a vehicle caused by

Falling objects
Fire
Theft or larceny
Earthquake
Windstorm
Hail
Vandalism
Contact with birds or animals

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7
Q

What is a split limit ?

A

1st limit : bodily injury per person
25k

2nd limit: bodily injury per accident
50k

3rd limit: property damage per accident
25k

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8
Q

What is a combined single limit policy?

A

Combines bodily injury and property damage into one number

50k for bodily
25k for property

All dollars can be used for anything that occurs

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9
Q

Why don’t we automatically get a combined limit policy?

A

The difference is that the combined pays out more in claims therefore the policy is expensive

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10
Q

What is per occurrence liability ?

A

Maximum payment for all claims that arise from a single accident or occurrence

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11
Q

What is per person liability ?

A

Maximum payment for bodily injury to a single person in an accident regardless of policy limits

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12
Q

What is an aggregate limit?

A

Maximum limit of coverage under a liability policy during the policy term

When an insurance company says enough is enough.

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13
Q

What do medical payments cover?

A

Medical and funeral expenses

Pays per person , per accident

For accidents up to 3 years old

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14
Q

What is an uninsured motorist?

A

Pays for bodily injury if vehicle owner has no insurance

Is underinsured

Hit and run [always considered uninsured motorist]

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15
Q

What is included in damage to your auto?

A

Collision and other than collision

Optional coverage ; subject to deductible

Only applies if a premium is shown on the declaration

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16
Q

What is limit of liability ?

A

Either the actual cash value at the time of the loss or the amount needed for repair or replacement [whichever is less]

17
Q

What is payment of loss?

A

Payment, repair , or replacement of damaged or stolen property

18
Q

What is no benefit to bailee?

A

Insurance does not directly or indirectly benefit any carrier or Bailee

19
Q

What is a Bailee?

A

Bailee is someone who has taken custody or control of your vehicle [repair shop]

20
Q

What is an appraisal in auto insurance?

A

When in a car accident , getting a third party to access the car to determine its value

21
Q

What are duties after a loss ?

A

Prompt notification of loss- letting insurance know right away

Cooperating with insurer- emotional time. Try to help

Forwarding any pertinent legal papers- police reports etc

Submit to a physical exam if requested by insurer

Allowing access to medical records

Submitting proof of loss

Notify police or hit and run

Protect property from further damage

Allow insurer to inspect and appraise damaged property

22
Q

What are common policy conditions ?

A

Bankruptcy - does not relieve the insurer from its obligations

Policy changes - may only be effected by endorsements

Fraud - no coverage if insured has made fraudulent statements

Subrogation- insurers right to recover payment
Ex. Your in an accident and it’s totaled , insurance company is replacing car with check.

Policy period and territory- time period and location where coverage will apply

23
Q

How long does insurance company have ability to cancel a policy for non payment of premium ?

A

10 days

24
Q

What are some types of miscellaneous vehicle endorsements?

A

Motorcycles
Motor homes
Dune buggies
Scooters
Golf carts

ALL NEEDED TO BE ADDED

25
Q

Who does joint ownership endorsement apply to?

A

When someone owns the car but they’re not the one driving the car.

Individuals who reside in the same household (outside of spouses) and nonresident relatives

26
Q

What is commercial auto coverage forms ?

A

Business auto

Business auto physical damage

Garage coverage - ex. Auto body with someone’s car in it. Care custody and control

Motor carrier coverage -

27
Q

What is symbol 01

A

Any auto , including owned, leased , hired or borrowed autos (used only for liability coverage

28
Q

What is symbol 02

A

Owned autos only

29
Q

What is symbol 03

A

Owned private passenger autos only

30
Q

What is symbol 04?

A

Owned autos other than private passenger autos only

31
Q

Symbol 05?

A

Owned autos subject to no fault

32
Q

Symbol 07

A

Specifically described autos only

Most selected Symbol

33
Q

What is section 1 of the auto insurance ?

A

Property

34
Q

What is section 2 of automobile insurance ?

A

Liability

35
Q

What are insured’s legal responsibilities in an accident or negligent act:

A

Bodily injury

Property damage

Legal fees (settling claims or suits)

36
Q

What is section 3 of auto insurance ?

A

Physical damage

37
Q

What is comprehensive damage?

A

Any cause other than collision or overturn

38
Q

What does garage coverage deal with ?

A

Sale , service or repair , and parking or storing of automobiles

39
Q

What is the general form structure ?

A

Section 1 : covered auto - the symbol you select

Section 2: liability

Section 3: garagekeepers liability

Section 4: physical damage

Section 5 : conditions

Sections 6: definitions - various terms in a policy

LM (5 decks)

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