Automobile: Personal & Business Auto

Question 1

Name Policy Parts A-F

Answer 1

Part A - Liability
Part B - Medical Payments
Part C - Uninsured Motorist
Part D - Coverage for Damage to Your Auto
Part E - Duties after an Accident or Loss
Part F - General Provisions

Question 2

4 types of Auto

Answer 2

• Owned
• Nonowned
• Hired
• Temporary Substitute

Question 3

Owned

Answer 3

Vehicle titled to the policyholder or acquired during policy period.

Question 4

Nonowned

Answer 4

Private vehicles operated or in custody of the named insured, not titled to the policyholder

Question 5

Hired

Answer 5

Lease, borrowed or rented

Question 6

Temporary Substitute

Answer 6

Auto or trailer not owned by the policyholder used while the insured vehicle is out of service because of a breakdown, repair, loss or destruction

Question 7

Part A - Liability Coverage

Answer 7

Pays for property damage and bodily injury, defense costs, and costs resulting from settlement or defense of the policyowner

Question 8

Part A (Limits of Liability)

Answer 8

Maximum amount the policy will pay

Question 9

Part A (Split Limit)

Answer 9

Broken into bodily injury for each person involved, bodily injury, for the entire accident, and property damage.

Question 10

Part A (Combined Single Limit)

Answer 10

A dollar amount indicating the maximum coverage for all losses.

Question 11

Part A - Common Exclusions

Answer 11

• Intentional injury or damage
• Use of auto without permission
• Use of commercial-type vehicles in business
• Damage to property being transported

Question 12

Part B - Medical Payments

Answer 12

*Pays for necessary medical and funeral expenses resulting from an accident and sustained by the policyowner.

Question 12

Part B - Medical Payments

Answer 12

*Pays for necessary medical and funeral expenses resulting from an accident and sustained by the policyowner.

• Must be rendered within 3 years of the accident
• Payments available form liability or uninsured motorist coverage reduce the amount of medical payments coverage

Question 13

What does Part C “UM” and “UIM” stand for?

Answer 13

Uninsured Motorist & Underinsured Motorist

Question 14

Uninsured Motorist (UM)

Answer 14

For bodily injuries caused by another motorist who does not have the required liability insurance coverage.

Question 15

Underinsured Motorist (UIM)

Answer 15

For bodily injuries caused by another motorist with insufficient insurance coverage

Question 16

UIM Coverage= Insured’s UIM limits - Driver’s BI limtis

Question 17

Part D: Coverage for Damage to Your Auto

Answer 17

• Includes collision and other than collision coverages

- Pays for direct and accidental loss to a covered or nonowned auto

Question 18

4 parts to Part D Transportation expenses

Answer 18

• Paid if loss is a result of collision or caused by something other-than-collision
• Applies to owned autos
• A 24-hour waiting period applies for expense payments for losses other than theft.
• A 48-hour waiting period applies for expense payments resulting form theft

Question 19

Part E: Duties after an Accident or Loss

Answer 19

Outlines the required duties of any individual seeking damages under the policy after a loss or accident.

Question 20

Part E 8 Duties listed

Answer 20

• Prompt notification of loss
• Cooperation with the insurance provider
• Forwarding legal papers
• Submitting to physical or other examinations under oath
• Allowing the insurance provider to access medical records
• Notification of policy of a hit-and-run or theft
• Protection of property from additional loss
• Allowing the insurance provider to inspect and appraise damaged property

Question 21

Part F: General Provisions

Answer 21

Describe the conditions applied to all coverage parts in addition to the conditions applied to the individual coverages

Question 22

Part F: Bankruptcy

Answer 22

Does not relive the insurer of their obligation

Question 23

Part F: Policy Changes

Answer 23

Terms and Conditions cannot be waived except by endorsement

Question 24

Part F: Fraud

Answer 24

Coverage is not provided to an insured making fraudulent statements

Question 25

Part F: Legal action against the insurer

Answer 25

Legal action cannot be made against the insurer until policy provisions have been complied with

Question 26

Part F: Subrogation Rights

Answer 26

Insurer has the right to recover payments

Question 27

Part F: Policy Period and Territory

Answer 27

US, US Territories and Canada

Question 28

Part F: Termination

Answer 28

Right and duties of the insured and the insurer to cancel or nonrenew coverage

Question 29

Part F: Assignment

Answer 29

The insured cannot transfer their right or interest in the policy without written consent of the insurer

Question 30

Part F: Two or more policies

Answer 30

The insurer’s liability is the highest limit of insurance if multiple policies cover the same loss.

Question 31

Common Endorsements under Auto

Answer 31

• Towing and labor costs (basic limit of $25)
• Extended nonowned coverage for named indi
• Miscellaneous types of vehicles (includes golf carts, motorcycles, motor homes)
• Joint Ownership Coverage (coverage for individuals who own a vehicle together)

Question 32

Commercial Auto Coverage Form

Answer 32

Covers commercial auto exposures; excluding garages, truckers and motor carriers

Question 33

Name Sections I, II, III, IV, V of Commercial Auto Coverage Form

Answer 33

Section I - Covered Autos (auto designation symbols which define the types of vehicles insured)
Section II - Liability Coverage (designates how much a policy will pay for property damage or bodily injuries to 3rd parties
Section III - Physical Damage Coverage
Section IV - Conditions
Section V - Definitions

Question 34

Garage Coverage Form

Answer 34

Covers businesses that regularly have autos of others in their care, custody or control.

Question 35

Name Sections I, II, III, IV, V and VI of Garage Coverage Form
*hint almost the same as commercial auto coverage form

Answer 35

Section I - Covered Autos
Section II - Liability (Garage Operations)
Section III - Garagekeepers (covers damage to a customers’s auto left in the insured’s care including comprehensive, specified cause of loss and collision
Section IV - Physical Damage (similar to BA coverage form with additional exclusions)
Section V - Garage Conditions (similar to BA coverage form)
Section VI - Definitions

Question 36

Individual Insurance and Drive Other Car (DOC)

Answer 36

Extends liability and physical damage of a nonowned vehicle the policyowner uses.

-Applies to company supplied, leased, rented or borrowed vehicle