Chapter 6 Personal Auto Policy

Question 1

Temporary Substitute Vehicle

Answer 1

non-owned vehicle used in place of an insured vehicle that is out of normal use due to breakdown, repair, servicing, loss, or destruction

Question 2

Supplementary Payments

Answer 2

under Part A – Liability Coverage include the cost of bail bonds, appeal bonds, post-judgment interest, loss of earnings, and reasonable expenses while assisting the insurer in the defense of a claim

Question 3

What is NOT covered by Part A Liability? (exclusions)

Answer 3

does not apply to vehicles with fewer than four wheels, vehicles that are owned but not insured, uninsured vehicles owned by family members; vehicles furnished for the regular use of the named insured or family members; and vehicles inside a racing facility used for competing in, practicing in, or preparing for a race

Question 4

Outside The State

Answer 4

in which it is principally garaged, Part A – Liability Coverage extends to provide coverage required by the financial responsibility or compulsory insurance laws of that state or Canadian province

Question 5

Medical Payments Coverage

Answer 5

the insurer will pay reasonable expenses incurred within 3 years of the accident

Question 6

Arbitration

Answer 6

when the insurer and the insured do not agree on the recovery of damages or the amount recoverable by the insured

Question 7

Part D – Coverage for Damage to Your Vehicle

Answer 7

also known as the physical damage coverages collision and other than collision, pays for direct and accidental damage, regardless of fault, to the insured’s covered vehicles and non-owned autos

Question 8

Collision

Answer 8

impact with another vehicle or object

Question 9

Other Than Collision (OTC, Comprehensive)

Answer 9

provides open perils coverage for loss caused by any peril that is not excluded in the policy

Question 10

What is the limit of liability for loss under Part D?

Answer 10

loss is the lesser of the actual cash value (ACV) of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality. Part D does not pay for betterment

Question 11

What coverage applies to you & yours?

Answer 11

Part B - Medical Payments
Part C - Uninsured/Underinsured Motorists (UM/UIM)
Part D - Coverage For Damage To Your Auto

Question 12

What coverage applies to others?

Answer 12

Part A - Liability Coverage

Question 13

What is a hired auto?

Answer 13

auto that is leased, hired or rented