Chapter 6 Personal Auto Policy Flashcards

1
Q

Named insured listed?

A

Listed in Declarations and includes the spouse if a resident of the same household

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2
Q

Who is a family member?

A

person related to named insured by blood, marriage, or adoption, including a ward or foster child who is a resident of teh household

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3
Q

what’s a covered auto??

A

Any vehicle shown in the Declarations, a newly acquired auto, any trainer the insured owns or a non-owned auto or trailer while being used as a temporary substitute of vehicle

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4
Q

What’s a temporary substitute vehicle

A

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

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5
Q

what is a newly acquired auto

A

one to which te named insured takes title and either rpelaces an existing vehicle owned by named insured, ora vehicle that increases the total number of vehicles owned by the named insured

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6
Q

The supplementary payments under Part A- Liability Coverage include?

A

cost bail bonds, appeal bonds, post-judgement interest, loss of earnings, and reasonable expenses while assisting the insurer in the defense of a claim

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7
Q

Part A exclusions include?

A

bodily injury or poperty damage intentionally caused by an insured; property in the insured’s care, custody, and control; bodily injury to an insured’s employee while working for the insured; using a vehicle as public or livery conveyance; working in the automobile business orusing a vehicle while engaged in business; and a vehicle used by a person without the reasonable belief of entitlement to drive it

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8
Q

Part A Liability does NOT apply to???

A

vehicles with fewer than four wheels, vehicles that are owned by 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

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9
Q

Maximum Limit Paid under Part A- Liability COverage is sown where?

A

On the policy’s Declarations and applies per accident for all bodily injury and property damage arising from one accident including damages for care, loss of services and death

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10
Q

What are stacked payments??

A

If a loss is covered under more than one part of the policy, payment will not be duplicated or stacked

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11
Q

Does Part A- Liability Coverage apply when a covered auto is driven outside the state?

A

YES! extends to provide coverage required by financial responsibility or compulsory insurance laws of that state

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12
Q

What does personal auto policy pay when other insurance applies at the time of loss?

A

only its share of the loss in the porportion of the policy’s limit bears to all insurance in place

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13
Q

Under medical payments coverage, insurer will pay what?

A

insurer will pay reasonable expenses incurred within 3 years of the accident! LImit applies per person and payments are only made for ecessary medical and funeral services caused by the accident

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14
Q

Does fault apply in medical payments?

A

Medical coverage applies regardless of fault to any insured occupying any auto or as a pedestrian when struck by a motor vehicle designed for use mainly on public roads

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15
Q

Part B Medical Payment exclusions are?

A

Insured occupying a vehicle with fewer than 4 wheels, using a vehicle as a public or livery conveyance or a residence, struc by an uninsured vehcle owned or furnished to an insured family member, using a veihcle without the reasonable belief of entitlement to drive it, using a vehicle while engaged in business or when workers’ compensation benefits apply or injuries sustained due to war, nuclear hazard or racing

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16
Q

Part C- Uninsured Motorists Coverage provides insurance to who?

A

persons injured in accidents caused by another party who is legally responsible for injuries to an insured that arise out of the ownership, maintenance or use of an uninsured motor vehicle

17
Q

What are excluded under part C?

A

accidents involving an owned vehicle that is uninsured, a vehicle while being used as a public or livery conveyance, the insured using a vehilce without the reasonable belief of entitement to drive it, using a vehicle while engaged in business, when workers’ compensation benefits apply, and punitive or exemplary damages

18
Q

When is the process of arbitration used?

A

when the insurer and the insured do not agree on the recovery of damages or the amount recoverable by the insured. Each party selects an arbitrator who then jointly select a third arbitrator who determines the insured’s amount of damages

19
Q

Underinsured Motorists Coverage provides insurance to?

A

covers the insured against drivers who have auto liability insurance bu the coverage limits are inadequate. UIM coverage will pay the amount over the at fault driver’s coverage up to the UIM limit

20
Q

Part D- Coverage for Damage to Your Vehicle (aka physical damages coverages collision and other than collision) pays for WHAT

A

direct and accidental damage, regardless of fault, to the insured’s covered vehicles and non-owned autos

21
Q

What is collision?

A

Collision is the upset of the covered vehicle or a non-owned auto or its impact with another vehicle or object

22
Q

Other Than Collision provides

A

Open Perils coverage for loss caused by any peril that is not excluded in the policy

23
Q

What is a non-owned auto?

A

private passenger auto, pickup, van or railer not owned by, furnished to, or available for the regular use of the named insured or family member, while being used by the named insured or a family member

24
Q

Transportation expenses coverage pays for what?

A

cost of transportation expenses incurred as a result of a covered collision or other than collision loss. No deductible applies and the limit of coverage is up to $20 per day (total of $600)

25
Q

IF a loss is caused by Total theft of the covered auto or a non-owned auto, what will the insurer pay?

A

transportation expenses incurred during the period that begins 48 hours after the theft and ends when the auto is returned to use or the insurer pays for the loss. Payments begin 24 hours after loss caused by other covered perils

26
Q

Part D exclusions include?

A

Insured vehicle being used as public or livery conveyance; damage as a result of wear and tear; freezing; mechanical breakdown; road damage to tires; war or nuclear hazard; tapes, records, disks or other media; and electronic equipment unless it’s permanently installed in the vehicle. TOtal loss by governemnt or civil authorities; loss to radar or laser detection devices and equipment; coverage for custom furnishings and equipment in any picup or van; a non-owned auto being used in the auto business; or any auto when located at a racing facility for organized racing

27
Q

Part D Limit of Liability for loss is what?

A

lesser of the actual cash value 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

28
Q

Part E- Duties after an Accident or Loss include?

A

prompt notification of any claims and legal papers received; cooperation in the claims investigation and settlement; submission to a physical exam; authorization for the insurer to obtain copies of medical reports and records; submission of a requested proof of loss; notification to the police if a hit-and-run driver is involved; and protection of property from further damage

29
Q

Part F- General Provisions include??

A

Bankruptcy or insolvency of an insured; changes to the policy; fraud; legal action against the insurer; right to recover payment; policy period and territory; policy termination provisions; transfer of the insured’s interest in the policy; and accident payments involving two or more insured auto policies

30
Q

Selected endorsements for the personal auto policy include???

A

Extended Non-owned coverage for a named individual, towing and labor costs coverage endorsement, miscellaneous type vehicle endorsement, named non-owner coverage for a named individual, excess electronic equipment coverage, limited MExico coverage, optional limits transportation expenses coverage, and joint ownership coverage endorsement