Final

Question 1

Guest hazard statute

Answer 1

operator of a vehicle becomes absolutely liable to an injured guest/passenger

Question 2

Family purpose doctrine

Answer 2

a parent if liable for the negligent actions of their child involved in a car accident while driving the parents car

Question 3

parental vicarious liability

Answer 3

parents can be held liable for their Childs harmful actions

Question 4

financial responsibility laws

Answer 4

does not specifically require insurance but requires individual or business to prove they can pay for damages resulting from an accident

Question 5

vicarious liability

Answer 5

a legal rule that holds a person responsible for the actions of others

Question 6

open-peril coverage

Answer 6

policy covers anything that happens to your house and stuff expect those explicitly excluded from your policy

Question 7

“insured” (HO)

Answer 7

you relatives and anyone under 21

Question 8

“insured” PAP

Answer 8

policy holder and anyone in the vehicle

Question 9

Fair rental value (HO)

Answer 9

income protection for landlords, if the property is damaged and can’t be rented out, the coverage pays rent on behalf of tenants.

Question 10

additional living expense (HO)

Answer 10

reimbursed you for extra living expenses if you are forced to live elsewhere after a covered insurance claim

Question 11

Underinsured motorist coverage

Answer 11

protects you if you’re hit by a driver who doesn’t have enough coverage to pay for the damages or injuries they caused

Question 12

Split limit, 50/100/30

Answer 12

Bodily injury per person, Bodily injury per accident, and Damage to property per accident:

Question 13

primary coverage

Answer 13

coverage that pays out regardless of whether
there are other insurance policies covering the same risk

Question 14

secondary (excess) coverage

Answer 14

Excess policies, also called secondary policies, extend the limit of insurance coverage of the primary policy or the underlying liability policy

Question 15

Compulsory insurance laws

Answer 15

insurance that a person or business is legally required to buy

Question 16

4 insurance options for high-risk drivers

Answer 16

auto insurance assigned risk pool
reinsurance pool
joint underwriting association
Maryland state auto insurance find

Question 17

no-fault auto insurance

Answer 17

where neither party accepts fault and just collects from their own insurance policy it lowers the insurance rates by avoiding lawsuits

Question 18

pure no-fault

Answer 18

each party collects from their own insurance and has no right to sue

Question 19

modified no-fault

Answer 19

only used in 13 states monetary and verbal threshold

Question 20

add on no-fault

Answer 20

person can collect and still has the right to sue

Question 21

choice no-fault

Answer 21

allows person to elect out of no fault

Question 22

newly acquired auto-provision

Answer 22

automatically receive coverage regardless of notifying the insurer of coverage other than physical damage
for physical damage covered for 14 days under the broadest coverage provided by the policy

Question 23

PAP liability exclusions

Answer 23

intentional damage, business use, motercycles

Question 24

Section 1 homeowner’s coverage

Answer 24

Coverage a: dwelling - where you live 100% coverage
Coverage b: other structures, covers structures separate from dwelling - 10% coverage
Coverage c: personal property no matter where in the world 50% coverage
Coverage d: loss of use - additional living expense 30% covered

Question 25

duties if a loss occurs PAP

Answer 25

1. notify the insurer of a claim
   protect property involved in loss
   cooperate with insurer