Personal Auto Insurance

Question 1

Casualty Coverages

Answer 1

Part A - Liability
Part B - Medical payments and coverage
Part C - Uninsured motorists coverage

Question 2

Property Coverages

Answer 2

Part D - coverage for damage to your auto (physical damage)

Question 3

Covered Autos

Answer 3

Private passenger autos
Newly acquired autos
Trailer
Temporary Substitute

Question 4

Temporary Substitute Auto

Answer 4

any auto or trailer not owned by the insured that is being used temporarily for a vehicle shown in the declarations that is out of use because of breakdown, repair, servicing, loss or destruction

Question 5

Newly Acquired Auto

Answer 5

a private passenger auto, pickup, or van the named insured acquires during the policy

Question 6

Coverage A Liability

Answer 6

covers damage for bodily injury or property damage that an insured becomes legally responsible for because of an auto accident

Question 7

Coverage A Supplementary Payments - BAILED

Answer 7

B - Bonds - up to $250
A - Aid (first aid)
I - Interest - on judgment or appeals
L - Loss of Earnings - up to $250 per day
E - Expenses
D - Defense

Question 8

Coverage A Exclusions

Answer 8

Bodily injury and property damage intentionally caused by the insured
Damage to property owned or being transported by the insured (HO may cover)
Damage to property rented to, used by, or in the care of the insured
Bodily injury to an insured’s employees occurring in the course of employment (worker’s compensation covers this)
Liability arising out of an insured’s ownership or operation of a vehicle used as a public or livery conveyance, such as a taxi
Use of a vehicle w/out permission
Motorized vehicles with fewer than four wheels or designed for use off public roads
Vehicles used in prearranged racing or speed contests

Question 9

Coverage A Limits of Liability

Answer 9

Combined single limit – covering bodily injury and property damage
Split limits – expressed as a series of 3 numbers, such as 100/300/50. This means that the policy will pay a maximum of:
 $100,000 per person for bodily injury or death
 $300,000 per accident for bodily injury or death
 $50,000 per accident for property damage
A person CANNOT collect duplicate payments for a loss that is covered under Part A and another coverage in the personal auto policy or under any underinsured motorists coverage provided by the policy

Question 10

Coverage A Other Insurance

Answer 10

if the insured is driving a nonowned auto insured by another entity like a car rental company, the other insurance is primary coverage and the insured’s policy is excess (second to pay if necessary)

Question 11

Coverage B Medical Payments

Answer 11

covers reasonable expenses for necessary medical and funeral services incurred within 3 years of the date of injury, regardless of fault. Includes:
- The named insured and any family member(s)
- While occupying a motor vehicle designed for use on public roads or a trailer
- When struck while walking along a roadway by a vehicle designed for use on public roads or a trailer
- Any other person while occupying the named insured’s covered auto(s)

Medical coverage is payable even if there is not a car accident. Pays for any accident that occurs in, on, or getting in, out or off the vehicle

Question 12

Coverage B Exclusions

Answer 12

Sustained while occupying a motor vehicle w/ fewer than four wheels
Sustained while using a covered auto as a public or livery conveyance
Sustained while occupying an uninsured auto owned by a family member or furnished for the family member’s regular use (does NOT apply to the named insured)
Sustained while the insured is occupying a vehicle without the reasonable belief that he is entitled to do so (does NOT apply to family members using covered autos owned by the insured)
Sustained while occupying a vehicle that is being used in the insured’s business
Caused by war or nuclear hazard
Sustained while occupying a vehicle located for use as a residence or premises
Sustained during prearranged racing or speed contests

Question 13

Coverage B Limits of Liability

Answer 13

single limit of liability applies to each person insured. Typical limits are $1,000, $2,000, $5,000 or $10,000 (up to $100,000)

Question 14

Coverage C Uninsured Motorists Coverage

Answer 14

pays the insured, family, and guest passengers for bodily injury and in some states property damage, as a result of an accident with a legally-liable uninsured motorist or hit-and-run driver. This coverage is mandatory in some states; in others, it must be offered and may be rejected in writing.

It covers: the named insured, anyone occupying the named insured’s covered auto, anyone entitled to recover damages because of bodily injury caused by an uninsured motorist to the named insured, family members, or passengers in the covered auto

Question 15

Uninsured Motor Vehicle

Answer 15

Has no liability insurance at the time of the accident or less than the state minimum required liability limits
Is a hit-and-run driver who cannot be identified and who strikes the insured’s covered auto (must be contact with the vehicle)
Has invalid liability coverage at the time of the accident because of insure insolvency (bankruptcy), or because coverage was obtained fraudulently by the insured

Question 16

Coverage C Limits of Liability

Answer 16

the limits can be split limits or a combined singe limit. Usually the limits cannot be greater than the insured’s liability limits

Question 17

You have _____ days to add a newly acquired auto to your policy

Answer 17

14

Question 18

Coverage D Damage to Your Auto

Answer 18

commonly known as physical damage coverage, pays for direct and accidental loss to the named insured’s covered auto or any nonowned auto (for which the insured is responsible – ex – rental car) against loss caused by: collision or other than collision

Question 19

Collision

Answer 19

the impact of an about covered by the policy with another object or vehicle, or the upset (overturn) of a vehicle

Question 20

Other than Collision

Answer 20

pays almost every other type of direct, accidental loss to the vehicle that is not specifically excluded by the policy. These perils are specifically listed in the policy as being “Other than collision” losses. The list includes damages caused by the following:
o Missiles (stones, items thrown from the road) or falling objects
o Fire
o Theft or larceny
o Explosion or earthquake
o Windstorm
o Hail, water, or flood
o V&MM (vandalism or malicious mischief)
o Riot or civil commotion
o Contact w a bird or animal
o Breakage of glass – if breakage is caused by collision, the insured has the option of having it treated as a collision loss. This eliminates a double deductible

Does NOT cover any personal property in the vehicle (HO covers this)

Question 21

Coverage D Transportation Expenses

Answer 21

This coverage pays up to $20 per day, to a maximum of $600

Question 22

Coverage D Exclusions

Answer 22

To an auto being used as a public or livery conveyance
Due and confined to wear and tear, freezing, mechanical or electrical breakdown, or road damage to tires (does NOT apply when the damage results from the total theft of the auto)
To electronic equipment that reproduces, receives, or transmits audio, visual, or data signals (does not apply to equipment that is permanently installed in the auto)
To tapes, records, disks, and other media used with the electronic equipment described above
Due to destruction or confiscation by government or civil authorities
To custom furnishings or equipment in a pickup or van (does NOT apply to caps, covers, or bed liners on pickup trucks)
To radar or laser detection equipment
To nonowned autos being used by any person engaged in an auto business
To any auto being used in a prearranged racing or speed contest