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FL 220 License Exam > Chapter 6 - Personal Auto (PAP) > Flashcards

Chapter 6 - Personal Auto (PAP) Flashcards

1
Q

List the 7 parts of a Personal Auto Policy (PAP)

A 
A - Liability Coverage
B - Medical Payments
C - Uninsured Motorist
D - Coverage for Damage to Your Auto
E - Duties After an Accident or Loss
F - General Provisions
Selected Endorsements
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2
Q

What qualifies a vehicle to be insured under a PAP?

A

Private passenger - sedan, SUV, truck, van
GVW under 10,000
Not used for delivery or commercial
Incidental Business Use is okay - sales calls

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3
Q

True or False - If a vehicle is leased by someone for a continuous period of at least 6 months and is under contract, it is considered yours.

A

True

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4
Q

For a newly acquired vehicle that has not been reported, how long does the Insured have automatic Part D coverage?

A

For 4 or 14 days, starting when the named insured becomes the legal owner of the vehicle. If comp/coll is on at least one vehicle automatic coverage ends after 14 days

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5
Q

When would off road vehicles be covered under Part A of a PAP?

A

During a medical emergency, if it’s a trailer, or a non-owned golf cart

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6
Q

Are company cars covered under Part A of PAP?

A

No. No vehicle that is furnished for regular use to the insured or family member would be covered.

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7
Q

How is the PAP Part A limit applied?

A

Per Accident for all Bodily Injury and Property Damage arising from that one accident. This includes damages for care loss of services and death.

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8
Q

In a PAP, describe the limits expressed in a split limit

A

Bodily Injury Per Person/Bodily Injury per Accident/Property Damage per Accident

BI per person/ BI per accident / PD per accident

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9
Q

Describe a PAP Combined Single Limit

A

A maximum aggregate per accident regardless of the type of loss - BI or PD

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10
Q

Describe the Part A Out of State Coverage

A

Extends coverage to meet the insurance laws of that state. Example - someone who does not have PIP and goes to a state that requires PIP.

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11
Q

If you borrowed your neighbors car and caused an accident, how would your insurance apply?

A

It would be excess. Your neighbor’s insurance would be primary.

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12
Q

What does the Part A Insuring Agreement state?

A

The Insurer will pay for damages the Insured is legally liable for and settle any defense costs that incurs, as long as it is covered and the limit of liability is not exhausted.

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13
Q

What does the Part A Supplementary Payments of PAP cover?

A

Bails Bonds - $250

Loss of earnings due to the insurer requesting the insured to be present for hearings or trials - $200 per day.

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14
Q

For Part A of PAP, does the Insured have to be legally responsible for coverage to be triggered?

A

Yes

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15
Q

For Part B of PAP, does the Insured have to be legally responsible for coverage to be triggered?

A

No

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16
Q

Will Part B of PAP cover an accident where the Insured is occupying or struck by a vehicle owned by the Insured or a family member but not a “your covered auto?”

A

No

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17
Q

Describe the limit of liability for Part B of the PAP

A

It is the maximum amount paid per injured person per accident.

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18
Q

In general, if a loss is covered under more than one part of the policy, will payment be duplicated?

A

No

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19
Q

A medical payments claim will be paid by the insurer within how many months from the accident?

A

36 months - 3 years

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20
Q

Does the other party need to be legally responsible for Part C to apply?

A

Yes

21
Q

Part C of a PAP applies to BI, PD, or both?

A

Only applies to BI, unless UMPD is specifically listed.

22
Q

What qualifies as an Uninsured Motor vehicle?

A
  • a vehicle that does not have insurance
  • a vehicle that does have sufficient BI liability limits
  • is a hit and run vehicle
  • has insurance but the insurer denies the claim or becomes insolvent
23
Q

Which vehicles are not considered Uninsured?

A
  • A vehicle owned by the insured
  • A vehicle owned by the government
  • A vehicle that is self insured
  • A vehicle that is used on rails
  • A vehicle permanently located
24
Q

Describe the Part C Exclusions

A
  • If the Insured is using a “your covered auto” as a taxi (livery)
  • an insured is using a VH without a reasonable belief
  • anyone under a WC or disability policy
  • if the insured is legally liability for punitive damages
25
Q

Describe the limit of liability for Part C PAP

A

It is the maximum amount that will be paid in any one accident, regardless of how many vehicles in the accident.

26
Q

If there is more than one policy that provides UM in place, how much can be paid out in the event of a loss?

A

The total amount the insured can collect cannot exceed the the policy with the highest limits.

Example - Policy A has 100/30 and policy B has 50/100. The amount collected cannot exceed 100/300.

27
Q

Regarding Part C, if a loss occurs with a non-owned auto, which policy is primary?

A

The policy covering the non-owned auto is primary and the insured’s policy is excess.

28
Q

Describe Underinsured Motorist

A

Protects the Insured against drivers who are underinsured. Pays the difference.

29
Q

Describe Part D of a PAP

A

Provides 1st party physical damage for covered autos and some non-owned vehicles being operated or used by the insured and family members

30
Q

If theft a covered peril under Part D - Comprehensive?

A

Yes

31
Q

Contact with a bird or animal is considered collision or comprehensive?

A

Comprehensive

32
Q

Describe the Transportation Expense coverage in Part D

A

Insurer will pay $20/ day up to $600 total for transportation expenses incurred due to a comp/coll loss.

33
Q

How long must an insured wait for the Transportation Expense coverage to be triggered after a total theft of a covered auto or non-owned auto?

A

Must wait 48 hours after the theft.

It ends when the auto is returned or the insurer has paid for the loss.

34
Q

How long must an insured wait for the Transportation Expense coverage to be triggered after a loss, that is not total theft, of a covered auto or non-owned auto?

A

Payment begins when the auto is withdrawn from use for more than 24 hours.

35
Q

What is the limit of liability for Part D of PAP?

A

It is the lesser of the ACV or replacement value.
In a total loss, adjustments are made for depreciation and physical condition.
There is a max limit of $1500 for non-owned trailer and $1000 for certain electronic equipment.

36
Q

Custom murals, decals, graphics, and carpeting is included or excluded in Part D?

A

Excluded

37
Q

What are the Insurer’s options if stolen property is recovered?

A

The Insurer can keep it or return it. If returned, the insurer must pay for any damage that resulted from the theft.

38
Q

What does No Benefit to Bailee mean?

A

Anyone in the custody or care of the vehicle will not be covered. Example - if a vehicle is in the repair shop and the mechanic damages it, the mechanic’s insurance would need to cover the damage, not the insured’s.

39
Q

What is Part E of a PAP?

A

Duties after an accident or loss

40
Q

Describe the Extended Non-Owned Coverage for a Named Individual Endorsement

A

Extends liability coverage of non-owned vehicles that are furnished to the insured for business or commercial use.
Also provides excess liability for taxi usage.
Liability and medical payments can be purchased under this endorsement.

41
Q

Describe the Towing and Labor Costs Coverage Endorsement

A

Provides reimbursement for towing to a garage or labor performed at disablement.
Applies per occurrence and to “your covered auto” or the insured’s use of non-owned auto.

42
Q

Describe the Misc Type Vehicle Endorsement

A

Provides coverage for Misc vehicles - motor homes, ATV, and golf carts. Modifies the less than 4 wheel exclusion regarding Coverage A, B, D

43
Q

Describe the Named Non-Owner Coverage for a Named Individual Endorsement

A

Allows Part A, B, C for individuals that that do not own vehicles but often borrow or rent. Also used for those that need to prove financial responsibility. Does not include Part D.

44
Q

Excess Electronic Equipment Coverage Endorsement

A

Allows the Insured to increase the original $1000 limit for electronic equipment. Includes $200 for coverage for tapes and discs.

45
Q

Describe the Limit Mexico Coverage Endorsement

A

Provides coverage on an excess basis for accidents in Mexico and within 25 miles of the US border. Insured’s visit must be 10 or less days.
Prior coverage issued by a licensed Mexican Insurance company must be in place.
Cannot be resident or citizen of Mexico

46
Q

Describe the Optional Limits Transportation Expenses Coverage Endorsement

A

Allows the Insured to increase the Part D Transportation Expenses limit ($20/$600). Does not broaden the coverage.

47
Q

Describe the Joint Ownership Coverage Endorsement

A

Provides coverage to two or more individuals who reside in the same household but are not related by blood or marriage.
Also provides coverage to non-resident relatives (related by marriage or blood but not in the same house).

48
Q

Is Collision coverage provided regardless of fault?

A

Yes

FL 220 License Exam (14 decks)

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