Chapter 7 - Personal Auto Policy

Question 1

Coverage A of a PAP

Answer 1

Liability

Question 2

Coverage C of a PAP

Answer 2

Uninsured Motorist

Question 3

A private passenger car, SUV, passenger van, or pickup must be __ pounds or less to purchase a PAP.

Answer 3

10,000 lbs.

Question 4

This is an example of what kind of limit?
50/100/50

Answer 4

Split Limit

Question 5

Liability Insurance in PAP follows the driver or vehicle?

Answer 5

Vehicle

Question 6

Coverage B of a PAP

Answer 6

Medical Payments

Question 7

Coverage D of a PAP

Answer 7

Damage to Auto (Physical Damage) / Comprehensive & Collision

Question 8

Coverage that is in addition to the
liability limits and pays for bail bonds, appeal bonds, loss of earnings, and claims expenses (court stuff).

Answer 8

Supplementary Payments

Question 9

This is an example of what kind of limit?
100,000

Answer 9

Combined Single Limit

Question 10

If Bob drove Jacob’s car and
caused an accident, whose policy would be excess?

Answer 10

Bob’s policy.

Question 11

Medical payments must incur within how many years of the accident to claim on the PAP.

Answer 11

3 years

Question 12

This endorsement provides physical
damage coverage to vehicles in Mexico as long as a ____ policy is purchased, the vehicle within ___ miles of the U.S. Border, and visiting Mexico ___ days or fewer.

Answer 12

Mexico Liability
25 miles
10 days

Question 13

When the insured and insurer do not agree on the recovery of damages, the process of ____ will settle the dispute.

Answer 13

Arbitration

Question 14

In a PAP this coverage will payout if purchased and the insured collided with an animal.

Answer 14

Comprehensive
AKA: Other than Collision

Question 15

When it comes to Damage to your Auto, the loss is the lesser of ____ or the amount necessary to repair.

Answer 15

Actual Cash Value

Question 16

If the insurance company makes a
claim payment on behalf of the insured, the insured must assign his/her rights to the insurer to recover damages from the other party is known as ___________.

Answer 16

Subrogation

Question 17

This coverage on a PAP must be purchased and can only be used if not legally responsible for the
bodily injuries.

Answer 17

Uninsured Motorist

Question 18

In a PAP this coverage will
payout if purchased and the insured collided with a tree.

Answer 18

Collision

Question 19

If Transportation Expenses coverage
was purchased on a PAP and a car was stolen, the coverage will begin ___ hours after theft.

Answer 19

48 hours

Question 20

When the insured and the insurer
do not agree on the amount recovery of damages

Answer 20

Appraisal

Question 21

What type of miscellaneous vehicle is excluded from the Miscellaneous Type Vehicle Endorsement?

Answer 21

Snowmobiles

Question 22

The Policy Territory in a PAP.

Answer 22

USA,
Puerto Rico
Canada.

Question 23

Notice of at least ___ days is required for cancellation due
to reasons other than nonpayment in PAP.

Answer 23

30 days

Question 24

For the Towing and Labor
endorsement, the labor must be performed where?

Answer 24

Site of disablement

Question 25

The maximum limit for installed electronic equipment provided on an unendorsed PAP is $____.

Answer 25

$1,000

Question 26

An unendorsed PAP provides the limit of $______ for transportation expenses, with a maximum of $_____.

Answer 26

$20 per day/ up to $600