Ch.5 - Auto Insurance Flash Cards
If an insured is injured while driving his own car, what coverage in his personal auto policy will pay for the loss?
Part B: Medical Payments
What is the limit of liability in Part D: Coverage for Damage To Your Auto?
The lesser of the ACV of the vehicle or the amount needed to repair/replace the vehicle.
What would be considered a newly acquired auto?
A vehicle acquired by the insured during the policy period.
If an auto policy has liability limits of 40/60/20, what would be the equivalent combined single limit?
$80,000 (combined total of coverage for bodily injury and property damage)
A vehicle rented from a commercial rental company is known as what type of auto?
Hired auto
In Personal Auto Policy, to what geographical region does the out-of-state coverage apply?
Any U.S. state or territory, as well as Canada.
What is a covered auto?
A vehicle shown in the policy declarations.
What is combined limit in an auto insurance policy?
The max amount the insurer will pay on a covered loss.
What Personal Auto Coverage would pay for the insured’s travel expenses and loss of earnings while the insured is involved in the settlement process of a covered loss?
Part A: Liability
What are the coverage forms used in commercial auto insurance?
Business Auto Coverage Form, Business Auto Physical Damage Coverage Form, Garage Coverage Form, and Motor Carrier Coverage Form
What are the 4 categories of uninsured motor vehicles?
1) No insurance or liability bond 2) Insurance is less than what’s required by the financial responsibility laws 3) A hit-and-run accident where the driver cannot be identified 4) The insurer denies coverage or becomes insolvent.
Underinsured Motorists (UIM) coverage will pay the difference between which 2 limits?
The insured’s UIM limits and the at-fault driver’s insurance bodily injury limits.
When does the Underinsured Motorist coverage apply?
When the motorist is at fault in an accident, but the limits of their auto insurance are not sufficient to cover the bodily injury to another motorist.
How does the Auto Medical Payments Coverage endorsement modify the auto policy?
It adds medical payment coverage to a commercial auto policy.
What coverages are available in the physical damage section of the personal auto policy?
Collision and other-than-collision coverages
What do numerical symbols represent in auto policies?
They define the type of vehicle insured for specific coverages.
What type of auto coverage will apply in a hit-and-run accident where the driver cannot be identified?
Uninsured Motorist
Coverage for medical payments under a Personal Auto Policy applies to expenses following a covered accident that incurred and services rendered within what time period?
3 years
Who does the Garage Coverage form insure?
Auto dealers, service stations, auto repair shops
What types of losses are indicated by the split limits in an auto insurance policy?
1) Bodily injury per person
2) Bodily injury per accident
3) Property damage per accident
Who is considered insured under Part A: Liability of a PAP?
The vehicle owner or his/her family member or any person using the covered auto with permission.
What does the term “you” refer to in a personal auto policy?
The named insured shown in the declarations, and the insured’s spouse (if resident of the same household)
How much will a physical damage policy pay for transportation expenses due to a theft of a covered auto?
The policy will pay up to $20 per day, up to a maximum of $600, for transportation expenses incurred by the insured.
What are the 2 parts of the Garage Liability Coverage?
Garage Operations - Covered Autos and Garage Operations - Other Than Covered Autos
What coverage is provided in the liability section of the business auto coverage form?
The policy will pay for injury or property damage to third parties.
When does Uninsured Motorist coverage apply?
When the other party is legally liable, but has no insurance.
If an auto policy has split limits of 30/50/25, what is the max amount the policy will pay for injuries to one person in a single accident?
$30,000
If an auto policy has split limits of 30/50/25, how much will the policy pay for property damage in a single accident?
$25,000
What Personal Auto coverage would pay for damages to a covered auto caused by a collision with a deer?
Other Than Collision (Comprehensive)
What losses are excluded from coverage in the liability section of the PAP?
Intentional injury or damage, damage to property owned/transported by the insured, use of a vehicle as a public conveyance, or use of a vehicle without permission.
