Personal Auto Flashcards
What are the two types of motor vehicle liability policies?
- Owners - ownership, maintenance, use - registered
2. Operators (Named Nonowner Coverage) -
What’s another name for Named Nonowner Coverage?
Owners Policy
What are the three ways in which a person can be financially responsible with regards to operating a motor vehicle?
- posting a surety bond - $75,000
- cash deposit of $75,000
- purchasing liability insurance
Minimum Liability Limits in auto insurance:
$25,000 - bodily injury - one person any one occurrence
$50,000 - bodily injury - two or more persons (total)
$25,000 - damage to property - any one occurrence
What is the Auto Assigned Risk Plan?
guarantees individual right to purchase auto insurance in spite of a POOR DRIVING RECORD.
Assigned Risk Plan does what?
- assigns applicant to insurer
- applicant cannot be denied coverage
- applicants have no choice of the insurer assigned
- cost is much higher - last resort
If a driver attends an approved accident prevention course, insurer must, by law:
ALLOW A PREMIUM DISCOUNT
What’s the minimum number of hours an approved accident prevention course must be AND how often could you take on?
6 hours
every 3 years
- does not apply to court ordered driving courses
What are the five pieces of required information on a motor vehicle liability policy?
- name and address
- policy period
- limits
- coverage
- premium
NOT SS# or DL#
What must a vehicle be in order to be covered under a motor vehicle liability policy?
- 4 wheel private passenger
2. pickup or van - gross weight less than 10,000 pounds which is NOT used in a freight for delivery business
“Your Covered Auto” includes what five things?
- Specified Autos
- Replacement
- Additional
- Owned trailers
- Temporary substitute
Def of “Temporary substitute:”
temporarily used - insured auto must be OUT OF SERVICE - not simply out of reach
Within how many days must you notify the insurer in the event of Replacement autos or Additional Autos?
14 days
Does a replacement auto have the same coverage as the original?
YES - notify within 14 days
What has the broadest coverage of any vehicle?
Additional autos
A replacement vehicle always replace the vehicle with the _________ deductible.
lowest
Another term for excess coverage in auto insurance:
Secondary
Which four parties are covered in auto liability insurance?
- named insured
- family member
- permissive user
- person or organization legally responsible
Exclusions to personal auto liability policy:
- intentional (road rage)
- cargo
- property owned by insured
- injury to employee during employment (WC covers
- transporting for a fee (taxi)
- permissive user while employed in auto business (bailee)
- used without the reasonable belief of permission
- furnished for regular use (company vehicle)
9 fewer the 4 wheels
- organized racing
What are supplemental payments on a personal auto liability policy?
Additional coverages - defense costs
In a personal auto liability policy, claim check must be payable to third party claimant and any _______ ____ _______ as co-payee.
registered lien holder
Who can receive medical payment benefits in personal auto liability policy?
- named insured or family member
- occupying a motor vehicle
- pedestrian when struck by a motor vehicle
- any other person
- occupying “your covered auto”
Definition of occupying:
While in, upon, getting into, on, out or off
Med pay limits on auto liability policy:
per person
per occurrence
no aggregate limit
