Module 3 Automobile Policy Liability

Question 1

Where does an adjuster find policy information and coverages?

Answer 1

Declarations Pages

Question 2

What are the covered automobiles in the auto policy?

Answer 2

Listed vehicles, Newly Acquired Vehicles, Trailer, Temporary Replacement

Question 3

FL No Fault Law Provides _______________ immunity from liability torts for automobile injuries.

Answer 3

Limited

Question 4

Bob is driving Fred’s car. Both have FL minimum liability limits policies.

Bob is at fault in an auto accident where the claimant is injured and incurs $14,000 medical bills. (These are the bills remaining after PIP and MP are paid to the claimant.)

How much is paid to the claimant?

Answer 4

Fred’s pays $10,000; Bob’s pays $4,000

Question 5

Our insured driver has 25/50/25 liability limits automobile liability coverage. He is at fault and caused injures to three people. What is the maximum that can be paid for all three injuries?

Answer 5

$50,000

Question 6

Defense costs in the liability section of the auto policy are ________________ and are ________________ the liability limits.

Answer 6

Unlimited; In addition to

Question 7

How are PIP and Medical Payments related on an injury claim?

Answer 7

PIP is primary

Question 8

If There are three members of the household in the insured’s vehicle and all are injured how is PIP paid?

Injuries: Allan: $10,000. Betty: $12,000. Carl: $14,000

Answer 8

$8,000; $9,600; and $10,000