Exam 2 - Personal "AUTO" Policy

Question 1

What are the 4 coverages of PAP?

Answer 1

liability, medical payments, uninsured/underinsured motorists, physical damage

Question 2

In liability coverage, WHO is insured?

Answer 2

Name, family, permissive user, any person/org for a covered auto

Question 3

What are the 4 covered autos?

Answer 3

cars in the list, temp substitute car, newly acquired car, owned trailer

Question 4

Which covered auto is covered in liability ONLY?

Answer 4

owned trailer

Question 5

What is the liability coverage requirement for a newly acquired car with a replacement car?

Answer 5

Automatic

Question 6

What is the liability coverage requirement for a newly acquired car with an additional car?

Answer 6

Report within 30 DAYS

Question 7

What is the physical damage coverage for a replacement car?

Answer 7

Report within 30 DAYS

Question 7

What is the physical damage coverage for an additional car?

Answer 7

Report within 30 DAYS

Question 7

What are the split limits for liability coverage?

Answer 7

BI per person / BI per accident / PD

Question 7

What is a temporary substitute car?

Answer 7

Covered auto that is non-owned, has automatic coverage

Question 8

Liability coverage covers..

Answer 8

Body injury, property damage, defense cost

Question 8

What is recommended TO BUY for covering the injuries of other people?

Answer 8

High limits of liability

Question 9

Does liability cover driving out of state?

Answer 9

Yes, PAP will adjust to meet that state’s minimum liability coverage

Question 10

What is subrogation?

Answer 10

Insurance pays for the insured’s damages, then seeks reimbursement from the negligent party

Question 11

Why is subrogation good?

Answer 11

Prevent insured collect $ twice, hold bad party accountable, hold down rates

Question 12

What are the rules for subrogation?

Answer 12

IF all is good, insurance is reimbursed ACV of the car and good party is reimbursed deductible

Insured person cannot give up or waive the insurance company’s right to pursue subrogation

Question 13

What is the exception for subrogation?

Answer 13

In the Homeowners policy, insured party can WAIVE before loss

Question 14

What does not count for liability coverage?

Answer 14

Intentional injury, property OWN/RENT/BORROW, BI to employee on job, uber, permissive user for business, two wheels, company car

Question 15

What is the endorsement that can provide coverage for you using a company car?

Answer 15

Extended non owned coverage

Question 16

Who is eligible for medical payments?

Answer 16

Anyone even if they’re negligent

Question 17

Who is covered in medical payments?

Answer 17

Name, family, others using insured car

Question 18

What is the exclusion of medical payments?

Answer 18

Intentional injury, property OWN/RENT/BORROW, BI to employee on job, uber, permissive user for business, two wheels, company car AND car used as residence (camper, trailer truck)

Question 19

What is an uninsured coverage?

Answer 19

Coverage that pays BI and PD to your car caused by driver with no car insurance

Question 20

What do you need in order to have coverage of the uninsured driver to be liable for your injuries?

Answer 20

Police report

Question 21

Who is covered in the UM coverage?

Answer 21

Name, family, others using covered car

Question 22

What are considered an uninsured car?

Answer 22

Hit/run, no car liability applies

Question 23

What is underinsured coverage?

Answer 23

Where the UIM will pay the DIFFERENCE between risky and insured’s UIM policy limits