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Property & Casualty Insurance Exam - Oklahoma > Personal Auto > Flashcards

Personal Auto Flashcards

1
Q

What are the two types of motor vehicle liability policies?

A
  1. Owners - ownership, maintenance, use - registered

2. Operators (Named Nonowner Coverage) -

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2
Q

What’s another name for Named Nonowner Coverage?

A

Owners Policy

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3
Q

What are the three ways in which a person can be financially responsible with regards to operating a motor vehicle?

A
  1. posting a surety bond - $75,000
  2. cash deposit of $75,000
  3. purchasing liability insurance
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4
Q

Minimum Liability Limits in auto insurance:

A

$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

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5
Q

What is the Auto Assigned Risk Plan?

A

guarantees individual right to purchase auto insurance in spite of a POOR DRIVING RECORD.

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6
Q

Assigned Risk Plan does what?

A
  • assigns applicant to insurer
  • applicant cannot be denied coverage
  • applicants have no choice of the insurer assigned
  • cost is much higher - last resort
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7
Q

If a driver attends an approved accident prevention course, insurer must, by law:

A

ALLOW A PREMIUM DISCOUNT

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8
Q

What’s the minimum number of hours an approved accident prevention course must be AND how often could you take on?

A

6 hours

every 3 years

  • does not apply to court ordered driving courses
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9
Q

What are the five pieces of required information on a motor vehicle liability policy?

A
  1. name and address
  2. policy period
  3. limits
  4. coverage
  5. premium

NOT SS# or DL#

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10
Q

What must a vehicle be in order to be covered under a motor vehicle liability policy?

A
  1. 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

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11
Q

“Your Covered Auto” includes what five things?

A
  1. Specified Autos
  2. Replacement
  3. Additional
  4. Owned trailers
  5. Temporary substitute
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12
Q

Def of “Temporary substitute:”

A

temporarily used - insured auto must be OUT OF SERVICE - not simply out of reach

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13
Q

Within how many days must you notify the insurer in the event of Replacement autos or Additional Autos?

A

14 days

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14
Q

Does a replacement auto have the same coverage as the original?

A

YES - notify within 14 days

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15
Q

What has the broadest coverage of any vehicle?

A

Additional autos

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16
Q

A replacement vehicle always replace the vehicle with the _________ deductible.

A

lowest

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17
Q

Another term for excess coverage in auto insurance:

A

Secondary

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18
Q

Which four parties are covered in auto liability insurance?

A
  1. named insured
  2. family member
  3. permissive user
  4. person or organization legally responsible
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19
Q

Exclusions to personal auto liability policy:

A
  1. intentional (road rage)
  2. cargo
  3. property owned by insured
  4. injury to employee during employment (WC covers
  5. transporting for a fee (taxi)
  6. permissive user while employed in auto business (bailee)
  7. used without the reasonable belief of permission
  8. furnished for regular use (company vehicle)

9 fewer the 4 wheels

  1. organized racing
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20
Q

What are supplemental payments on a personal auto liability policy?

A

Additional coverages - defense costs

21
Q

In a personal auto liability policy, claim check must be payable to third party claimant and any _______ ____ _______ as co-payee.

A

registered lien holder

22
Q

Who can receive medical payment benefits in personal auto liability policy?

A
  1. named insured or family member
  • occupying a motor vehicle
  • pedestrian when struck by a motor vehicle
  1. any other person
    - occupying “your covered auto”
23
Q

Definition of occupying:

A

While in, upon, getting into, on, out or off

24
Q

Med pay limits on auto liability policy:

A

per person

per occurrence

no aggregate limit

25
Q

What does uninsured motorist pay for?

A

bodily injury that an insured person is legally entitled to recover from the owner or operator of an uninsured motor vehicle

26
Q

Does a deductible apply in uninsured motorist cases?

A

NO

27
Q

Who can uninsured motorist benefits in personal auto liability policy?

A
  1. named insured or family member
  • occupying a motor vehicle
  • pedestrian when struck by a motor vehicle
  1. any other person
    - occupying “your covered auto”
28
Q

What four things does “Uninsured Motor Vehicle” include?

A
  1. Uninsured
  2. Underinsured
  3. Hit & Run
  4. Insolvent insurer or denied insurance
29
Q

Is self-insured uninsured?

A

NO

30
Q

Does gov’t owne mean uninsured?

A

NO

31
Q

Uninsured motorist insurance is mandated by law, but can be rejected in ______.

A

writing

32
Q

What is the maximum amount of uninsured motorist coverage one can have?

A

same as the liability limits

33
Q

What is the minimum about of uninsured motorist coverage that can be purchase?

A

25/50

34
Q

Are truckers exempt from uninsured motorist coverage?

A

YES!

35
Q

Exclusions to uninsured motorist coverage:

A
  1. intentional
  2. course of employment
  3. transporting for fee
  4. used without permission
  5. company vehicle
  6. VEHICLE USED AS RESIDENCE
36
Q

What is the valuation method for “your covered auto?”

A

Actual cash value ACV

37
Q

Who choses where repairs will be made?

A

insured

38
Q

What is the Loss payee (lien holder) entitled to?

A

claim check made payable to insured and loss payee

39
Q

What is a Constructive Total Loss?

A
  • method used to determine a constructive total loss is a formula

SALVAGE PLUS COST OF REPAIRS MUST EXCEED MARKET VALUE OF AUTO PRIOR TO CLAIM

40
Q

What are the two ways the insurance company can settle a Constructive Total Loss?

A
  1. Replacement

2. Cash settlement - actual cash value (acv) - LESS DEDUCTIBLE

41
Q

How is the cash settlement determined in a constructive total loss?

A
  • quotes from two or more DEALERS (not body shops)
  • cost of comparable vehicle (NADA)
  • cost of comparable vehicle in a LOCAL MARKET within the LAST 90 DAYS
42
Q

Exclusions to physical damage settlement in auto policy:

A

1 intentional

  1. equipment for sound reproduction ( unless permanently installed
  2. tapes, cds, dvds
  3. mechanical breakdown
  4. wear and tear
  5. taxi

7 custom equipment

8 radioactive

9 freezing

43
Q

What’s another name for Transportation Expenses?

A

Rental Reimbursement Coverage

44
Q

Transportation Expenses (Rental Reimbursement Coverage) pays for what?

A
  1. $20 per day - max of $600

2. total theft - will have 48 hour waiting period

45
Q

For what reasons pay an insurer cancel an auto policy?

A
  1. nonpayment
  2. drivers license suspended or revoked
  3. conviction of arson, fraud

CANNOT CANCEL BECAUSE OF NUMBER OF CLAIMS

  • MUST GIVE 10 DAYS NOTICE
46
Q

Insurer can non-renew auto policy and increase premiums at renewal with ____ days WRITTEN notice.

A

20 days

47
Q

P&C insurer CANNOT cancel, non-renew, charge higher prices or assign driving points solely based on what four things?

A
  1. not at fault
  2. lower liability limits with a previous insurer without justification
  3. traffic violation that was dismissed, acquitted or not charges
  4. claim inquires without actually submitting claim
48
Q

An insurer CAN cancel, non-renew, charge higher premium based on what four things?

A
  1. traffic record
  2. claim history
  3. moves out of state
  4. without auto liability for over 60 consecutive days

Property & Casualty Insurance Exam - Oklahoma (6 decks)

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