Chapter 6: Personal Automobile Policy

Question 1

What are the minimum limits and coverages required to be carried

Answer 1

$15,000- injury to one person in one accident
$30,000- injury to two or more in one accident
$5,000- damage to property of others in one accident

Question 2

What is the PA Motor Vehicle Financial Responsibility Law

Answer 2

must have insurance and adequate limits

Question 3

What is the PA Automobile Insurance Plan and what is its purpose

Answer 3

provides coverage to individuals who are unable to secure insurance through the regular voluntary automobile market

Question 4

What are the Basic First Party Benefits

Answer 4

Medical expenses up to the required minimum $5,000 ; usually identified within first 18 months

Question 5

Full tort and Limited Tort Option

Answer 5

Full- full financial compensation
Limited- no pain and suffering or non-monetary damages; premium reduction

Question 6

Added First Party Benefits & limits

Answer 6

Medical Expenses Benefits- $5,000-$100,000
Work Loss Benefit- 80% of actual loss of gross income after 5 day waiting period ($1,000 per month, $5,000 aggregate per person, maximum of $2,500 per month and $50,000 aggregate per person)
Funeral Expense Benefit- $1,500 or $2,500
Accidental Death Benefits- $5,000 to $25,000

Question 7

Difference between Uninsured and Underinsured Motorists Coverage

Answer 7

Uninsured- pays insured for bodily injury from uninsured/negligent driver
Underinsured- pays for losses suffered by insured with insufficient liability limit

Question 8

What is covered and what options/selection are required in PA

Answer 8

any registered vehicles must carry at least liability coverage, with limits $1,500 per person, $30,000 per accident, and $5,000 property damage or CSL of $35,000, $5,000 medical first party benefits

Question 9

7 specific exceptions that turn limited tort into full tort

Answer 9

1. injury considered serious
2. if at fault driver is convicted/accepts for DUI
3. is operating vehicle in another state
4. At fault driver intends to injure themselves or another
5. At fault driver has not maintained financial responsibility by law
6. Claim for vehicle defect is against a person in the business of manufacturing, designing, etc. otherwise maintaining
7. person is injured as an occupant of a commercial vehicle

Question 10

Non-economic loss

Answer 10

pain, suffering, other non-monetary losses

Question 11

Serious injury

Answer 11

injury resulting in death, serious impairment of a body function or disfigurement

Question 12

PA specific requirement regarding rental car coverage

Answer 12

minimum required liability limits
$15,000 in bodily injury liability insurance per person ($30,000 per accident) and $5,000 in property damage liability coverage per accident

Question 13

eligibility requirements for Personal Auto Policy
*Ownership & Autos

Answer 13

Ownership- individuals or jointly owned
Autos- private passengers, pickups or vans, Trailers, misc. vehicles (only covered by endorsements)

Question 14

newly acquired auto

Answer 14

*vehicles listed on that you become owner
private passenger, pick up or van with GVW less than 9,000lbs and not used in business other than farming/ranching

Question 15

4 specific parts of newly acquired auto

Answer 15

1. Coverage begins on the date you become owner, report w/n 14 days or end of policy period for replacement
2. Replacement or trade-in or additional vehicle, broadest coverage provided of the currently insured vehicle
3. Liability, PA first party benefits and UM/UIM to apply: named insured must acquire auto during policy period and must report coverage w/n required time
4. For COV D, 14 days if policy currently collision/other than coverage; if current policy doesn’t reporting period is 4 days and coverage is w/ $500 deductible

Question 16

How coverage applies to replacement auto vs. additional auto

Answer 16

see pg. 5 chart

Question 17

4 parts of “who is an insured” under Personal Auto Policy Liability Section

Answer 17

1. you- named insured and resident spouse & any family member
2. any person using your covered auto
3. any person/organization for liability under your covered auto
4. auto/trailer other than your covered auto, any person/org. has coverage for legal responsibility either named insured/family member
   *see pg. 7 chart

Question 18

What are the supplementary payments and how do they affect the limits of liability- 6

Answer 18

• paid in addition to limits in dec pages
  1. $250 for cost of bail bonds b/c of auto accident
  2. premium on appeal bonds
  3. interest accruing after judgement
  4. up to $200/day for loss of earnings b/c of trail
  5. other reasonable expenses occurred at insurance companies request
  6. pre-judgement interest paid

Question 19

Part A- Liability Exclusions (13)

Answer 19

no liability for insured persons…
-who intentionally cause bodily injury or property damage
-property damage to property owned/transported by that insured

Question 20

Exclusions for UM &UIM

Answer 20

1. while an insured is occupying their own vehicle
2. punitive damage
3. insured using vehicle w/o reasonable belief; excluded family member
4. an insured cannot settle any claim w/o insurers consent
5. while your covered auto is being used as public livery
6. if full tort is selected
   *7. not able to collect non-economic damages if selected limited tort (UM)

Question 21

Stacked vs. non-stacked UM/UIM benefits

Answer 21

Stacked- insured and family members limits equal to the amount of limits shown
NonStacked- limits expressed is the most that is available for any insureds

Question 22

COV D- Damage to your covered auto
*insuring agreement

Answer 22

bodily injury…
-sustained by an insured
-caused by an accident

Question 23

COV D- Damage to your covered auto
*what is collision

Answer 23

upset/overturn of covered auto or non-owned auto or their impact with another vehicle or object

Question 24

COV D- Damage to your covered auto
*what is covered under Other Than Collision (OTC)

Answer 24

Missiles or falling objects
fire
theft or larceny
explosion or earthquake
windstorm
hail
water or flood
malicious mischief or vandalism
riot or civil commotion
contact with bird/animal
breakage of glass

Question 25

COV D- Damage to your covered auto
*what is the two part definition of non-owned auto

Answer 25

private passenger vehicle which is not owned or furnished for the regular use of the named insured or family member

Question 26

What are the two parts of transportation expense & limits

Answer 26

Insured is paid if loss is caused by collision/other than
If loss is caused by theft than payments subject to 48hr waiting period
Limits: $20 a day, maximum of $600

Question 27

Exclusions (will not pay) under COV D

Answer 27

Loss while used as a public livery
Damage due to- wear/tear, freezing, breakdown
Road damage to tires
loss due to war
loss to electronic equipment
media
loss by governmental authority
loss to unlisted tailor, camper, motorhome
use of non-owned auto w/o reasonable belief of permission
loss to radar/laser detectors
loss to custom furnishings/equipment
Employed in selling, servicing, repairing or parking cards
Vehicle located in facility for racing
loss for rental vehicle

Question 28

Duties after an accident or loss (part E)

Answer 28

Same as others
COV for Damage to your auto- protect from further loss, notify police of theft, permit inspection/appraisal of damaged property

Question 29

Endorsement: Towing & Labor Costs

Answer 29

Coverage for towing and labor every time an auto becomes disabiled
*limits $50, $75, or $100

Question 30

Endorsement: Extended Non-owned coverage

Answer 30

extends coverage for insured’s personal use of a company car

Question 31

Endorsement: Miscellaneous type vehicle

Answer 31

alters the definition of covered vehicle to include scheduled vehicles such as motorcycles, motor homes, all terrain vehicles, dune biggies and golf carts
*Recreational Vehicle Policy

Question 32

Endorsement: Joint Ownership Coverage

Answer 32

covers joint owner of auto listed
*unmarried individuals, non-resident relatives, parent co-owns auto