Auto Insurance

Question 1

Personal Auto Policy:
What is Part A in a PAP?
Who does it pay out to?

Answer 1

LIABILITY
For Others
- The insurance company is responsible for the bodily injury and property damage of the other people you crash into.
- Liable = Responsible for others
- Choice or 1. Split Limit or 2. Combined Single Limit (CSL)

Question 2

Personal Auto Policy:
What is Part B in a PAP?
Who does it pay out to?

Answer 2

MEDICAL PAYMENTS
For Me (and my passengers)
- Per person limit
- Covers up to 3 years
- A medical bill is required
- Covers anyone getting in or out of the vehicle.

Question 3

Personal Auto Policy:
What is Part C in a PAP?
Who does it pay out to?

Answer 3

UNINSURED/UNDERINSURED MOTORIST
For Me
- my insurance company will cover my medical bills if there’s no insurance
Bodily injury coverage for me and my passengers if hit by someone who has no or not enough insurance.

UIM - Under-Insured Motorist
UM - Uninsured Motorist

Question 4

Personal Auto Policy:
What is Part D in a PAP?
Who does it pay out to?

Answer 4

DAMAGE TO YOUR AUTO
For Me
- Will pay out the repairs or ACV of your car when it’s damaged by:
1. Collision
“In Your Control”
E.g. crashing into something or a car accident or any sort
2. Other than Collision/Comprehensive
“Mother Nature” - anything out of your control
E.g. animals, theft, flood

Question 5

Personal Auto Policy:
What is Part E in a PAP?
Who does it pay out to?

Answer 5

DUTIES AFTER A LOSS
Common sense duties:
- call insurer
- file police report
- make a list of damages
- call 911
- cooperate

Question 6

Personal Auto Policy:
What is Part F in a PAP?
Who does it pay out to?

Answer 6

GENERAL PROVISIONS
“Rules”
E.g. bankruptcy, no benefit to the bailee, subrogation

Question 7

Selected Endorsements:
When you’re driving from one state to another, and they have different minimums, you get ___ __ ____ ________.

AZ ———————————-> TX
15/30/10 30/60/30

You drive to TX and crash. How much coverage do you have?

Answer 7

The best coverage.

TC has better minimums, so you get 30/60/30.

Question 8

Selected Endorsements:
T & E - Transportation Expenses

What are the two incidences and their waiting periods and payout?

Answer 8

$20/day
$600 max

1. Accident
   
   • 24-hour waiting period before you can collect
   • $20 a day
2. Stolen
   
   • 48-hr waiting period before you can collect
   • $20 a day