Auto Insurance Flashcards
What are the required limits of liability for an auto insurance policy?
$15,000 for bodily injury or death of 1 person in any 1 accident.
$30,000 for bodiliy injury or death of 2 or more people in any 1 acident.
$25,000 for damage or destruction of property of others in any one accident.
(15/30/25)
___ is a guarantee that debts & obligations will be carried out & the benefits will be paid for losses caused by nonperformance.
Surety Bond
___ states the insurance company agrees to provide coverage to a named insured in return for payment of the premium, subject to all terms of the contract.
Insuring Agreements
What is the weight limit for private passenger auto?
10,000 lbs.
What are considered covered auto under private passenger auto?
Pickup trucks
panel trucks
vans
___ provides coverage for damages that an insured become legally obligated to pay resulting from bodily injury or property damage to others because of an auto accident.
Liability Coverage (Part A)
What does the liability coverage section not provide?
Coverage for damage to the insured’s auto.
___ covers the cost of defending the insured in any suit for damages & pays for the cost of the defense in addition to the stated liability limit.
Liability Coverage
___ payments for the cost of bail bonds up to $250, premiums on appeal, & release of attachment bonds.
Supplementary payments
___ in the liability section of the personal auto policy apply to both individuals & vehicles.
Exclusions
What are the conditions of personal auto liability overage?
Notify the company when loss occurs.
Submit proof of loss.
Protect property from further damage.
___ Personal auto policy lists the things an insured needs to do following an accident or loss.
Part E: Duties Following a Loss
___ describes the conditions that apply to all coverage parts in addition to the conditions that apply to the individual coverages.
Part F: General Provisions
___ if 2 or more policies cover 1 vehicle, each insurance company pays the portion that its policy limit bears to the total of all applicable limits (Pro Rata Liability)
Other Insurance
___ pays for reasonable medical expenses incurred by a covered person for bodily injury y an accident involving any motor vehicle designed for highway use.
Medical Payments Section (Part B)
___ is designed to reimburse the insureds for amounts due from negligent drivers who do not carry insurance.
Uninsured Motorist Coverage (Part C)
___ thos insured but carry limits too low to cover the damages sustained by the injured party.
Underinsured
What protion of the auto policy provides coverage for the insured automobile?
PArt D: Coverage for Damage to Your Auto
What are 2 tpes of physical damage coverage provided by an automobile policy?
Collison
Other than Collision (Comprehensive)
___ if the insurer & insured cannot agree on a settlement.
Arbitration
___ the upset or impact of a covered vehicle or nonowned auto with another vehicle or object.
Collision
___ also known as comprehensive.
Other than Collision
How can an insurer change a policy?
Only by a written endorsement by the insurer that forms part of the policy.
Does Personal Auto Policy cover Fraud?
No
Does the insured’s bankruptcy or insolvency relieve the insurance company of its obligations?
No
___ settlement option between the insured and the insurer is used to resolve any disagreement except those regarding value of a loss.
Arbritration
___ settlement outlines a procedure to be used when the insured and the insurer disagree on the amount of a loss.
Appraisal
What are the selected personal auto policy endorsements?
Extended non-owned coverage for named individual
Joint Ownership Coverage
Towing and Labor Coverage
Miscellaneous Type Vehicles
Loss Payable Clause
Amendment of Policy Provisions- Louisiana Endorsements
___ may be used to extend the drive other car coverage of the policy to include coverage for all non-owned autos except those used in the garage business.
Extended Non-Owned Coverage for Named Individual
___ provides coverage for the interests of each owner of a covered auto.
Joint Ownership Coverage
___ may be added to PAP to provide coverage for vehicles not of the 4-wheel type such as motorhomes, motorcycles, motor scooters, all terrain vehicles, dune buggies, and golf carts.
Micellaneous Type Vehicles
___ coverage provides BI, UM, physical damage (subject to deductible), and medical payments
Micellaneous Type Vehicle
What endorsement must be attached to all automobile policies issued to Louisiana policyholders?
Admendment of Policy Provisions- Louisiana Endorsement
___ covers vehicles used to conduct business but does not cover vehicles that are sold, stored, or repaired for clients.
BUSINESS AUTO COVERAGE FORM
What are the 10 auto designations?
Symbol 1: Any auto
Symbol 2: Owned autos only
Symbol 3: Owned private passenger autos only
Symbol 4: Owned auto other than private passenger autos only
Symbol 5: Owned autos subject to no-fault
Symbol 6: Owned autos subject to a compulsory uninsured motorist law
Symbol 7: Specifically described autos
Symbol 8: Hired autos only
Symbol 9: Non-owned autos only
Symbol 10: Mobile equipment subject to a compulsory financial responsibility law
___ purchase automatic coverage for liability arising out of the ownership, maintenance, or use of any automobile owned on the policy inception date and any auto acquired by the insured during the policy term.
Symbol 1: Any Auto
___ coverage for any type of auto owned by the isnured.
Symbol 2: Owned Autos only
___ Only owned private passenger autos are to be covered.
Symbol 3: Owned Private Passenger Autos Only
___ Only owned non-private passenger autos will be covered by the contract.
Symbol 4: Owned Auto Other Than Passenger Autos Only
___ Used to select personal injury protection coverage and would automatically apply only to those owned vehicles subject to no-fault laws.
Symbol 5: Owned Autos subject to no-fault
___ designates vehicles subject to a compulsory uninsured mortorist law.
Symbol 6: Owned autos subject to a compulsory uninsured motorist law.
___ limits coverage to autos owned by the insured that are listed and described in the policy declarations for which a premium is charge is shown.
Symbol 7: Specifically described autos
___ provides protection for vehicle hired, leased, rented, or borrowed.
Symbol 8: Hired autos only
___ designates non-owned vehicles used on the insured’s behalf during the insured’s business.
Symbol 9: Non-owned autos only
___ provides coverage for autos that would be considered mobile equipment if they were not subject to compulsory financial respnsibility.
Symbol 10: Mobile equipment subject to a compulsory financial responsibility law
Under business auto, what are the types of auto covered?
Trucks
autos
trailers
buses
What are the categories for autos owned by businesses?
- Private Passenger (autos, utility autos, and utility trailers)
- Commercial Autos (trucks, commercial and service trailers, and semitrailers)
- Public Autos ( public and livery vehicles, taxis, and school buses)
What is not included in business auto?
off-road vehicles ( bulldozers, graders, forklifts, cherry pickers, & backhoes)
What are off-road vehicles coverage?
physical damage by a property floater & for bodily injury by a commercial general liability policy.
___ liability insurance in a package of coverages suited for automobile dealers.
Garage Coverage Forms
What endorsements can be added to the commercial auto coverage forms?
Drive other car coverage Individual named insured Additional insured Mobile equipment False Pretense Coverage Auto medical payments
___ onl extends liability, medical payments, uninsured motorist, or physical damage coverage that is provided by the insured’s policy to an individual named in the endorsement to drive an auto that is not owned, hired, or borrowed by the insured, a company officer borrowing a car for personal use would not be covered by the Business Auto Coverage Form without the addition of this endorsement.
Drive other car coverage
___ provides the insured’s family members with liability coverage as a named insured and they automatically have permission to drive a covered vehicle
Individual named insured
___ leased auto scheduled on the endorsement will be considered an owned auto rather than a hired or borrowed auto; the lessor is included as an insured.
Additional insured - lessor
___ provides liability, physical damage, and medical payments coverage for scheduled mobile equipment such as bulldozers and forklifts that are excluded under the business auto policy
Mobile Equipment
___ provides coverage if the insured is caused to voluntarily part with the covered auto by trick, scheme, or under false pretenses or if the insured acquires an auto from a seller who did not have legal title
False Pretense Coverage
___ pays for the reasonable and necessary medical and funeral expenses, injuries occuring while entering, riding, or exiting a covered auto are covered; persons covered include the named insured, family members, and other occupants of covered autos
Auto medical payments
___ a commercial organization that transports goods or passengers
Carrier
___ dedicates its property to public use in such a manner that its services are available to the public on a regular basis
Common Carrier
What are examples of common carriers?
railroads, bus companies, trucking firms, taxicab companies, airlines, and ferries.
___ states the right of a passenger to recover for injuries suffered usually depends on the demonstration of negligence on the part of the carrier or the carrier’s employee
Liability for passenger injuries
___ states if negligence is proven, the common carrier will be responsible for bodily injury or property damage suffered by the passenger
Liability for passenger injuries
___ is is an alternate to the trucker’s coverage form
Motor Carrier Coverage Form
____ is practically identical to the trucker’s coverage form but the principal difference between them is that the motor carrier form does not require that truckers transport goods for others for hire.
Motor Carrier Coverage Form
___ anyone who transports property by auto in a commercial enterprise, regardless of whether he was hired for that purpose; owned private passenger autos may be covered autos in the motor carrier coverage form; provides trailer interchange coverage
Motor Carrier
What legislation mandated that trucking operators must file proof of pollution liability insurance?
Motor Carrier Act of 1980
What are the financial responsibility requirments of the Motor Carrier Act of 1980 that apply seperately to freight tansportation?
Transportation for hire of nonhazardous property in interstate or foreign commerce must carry at least $750,000.
Transportation of extremely hazardous substances (e.g., compressed gas, explosives, poison gas, and radioactive materials) with a minimum limit of $5 million.
Transportation of oil listed as a hazardous substance or any hazardous waste or substances not included in b. with a minimum limit of $1 million
