Auto Insurance

Question 1

Every licensed driver as well as every motor vehicle operated on a state highway, even if only incidentally, must satisfy the ______________.

Answer 1

Minimum Financial Responsibility

Question 2

What are the minimum limits for Auto Insurance?

Answer 2

• $25,000 BI per person
• $50,000 BI per occurrence
• $25,000 PD per occurrence/ all damaged property

Question 3

What are the 6 parts of PAP?

How many of them are mandatory?

Answer 3

A- Liability (mandatory)
B- Medical Payments (optional)
C- Uninsured Motorist (optional) 
D- Damage to your Auto (optional)
E- Duties after an Accident (Mandatory)
F- General Provisions (Mandatory)

Question 4

What are the 5 different ways to meet financial responsibility?

Answer 4

1. Certificate of Self-Insurance
2. Surety Bond
3. Certificate of Deposit
4. Cash to be held by State Treasurer
5. Auto Insurance Policy

Question 5

The use of a vehicle in sales, by a person such as a real estate agent or, perhaps, an insurance agent. Car is driven more miles, sometimes with passengers.

Answer 5

Business Use

Question 6

Designed for vehicles in commercial use, such as pickup and delivery of goods or merchandise

Answer 6

Business Auto Policy

Question 7

What are the (3) major factors that define individual auto insurance policies?

Answer 7

Rates, Underwriting, Coverage

Question 8

Part A: Liability Coverage

According to PAP definitions bodily injuries include: (4)

Answer 8

1. Bodily harm
2. Sickness
3. Disease
4. Death that may result

Question 9

Part A: Liability Coverage

Property damage means: (3)

Answer 9

1. physical injury
2. destruction of
3. loss of use of tangible property

Question 10

What are the 3 supplementary payments included under the PAP Liability Coverage?

Answer 10

1. bail bonds
2. appeal bonds & interest
3. Loss of earnings