Personal Auto Policy (PAP)

Question 1

Under Part D, Within how many days must an insured report the purchase of a new vehicle that is replacing an existing vehicle covered by collision coverage?

A) 4
B) 5
C) 14
D) 15

Answer 1

C) 14

Question 2

A private passenger auto includes a leased vehicle as long as the lease contract is continuous for how many months duration?

A) 3
B) 6
C) 9
D) 12

Answer 2

B) 6

Question 3

A ____ vehicle is a covered vehicle when Your covered auto is being repaired due to a covered loss.

A) substitute
B) Replacement
C) Temporary Substitute
D) Conditional

Answer 3

C) Temporary Substitute

Question 4

Each of the following is a Part A - Liability Coverage Supplementary payment, EXCEPT:

A) Payment for all defense costs
B) $200 a day for loss of earnings due to an insurer request to assist in the trail
C) $250 for the cost of a bail bond
D) Premiums on appeal bonds

Answer 4

A) Payment for all defense costs

Question 5

The limit of liability is the most paid by the insurer regardless of all of the following, EXCEPT:

A) Number of insured
B) Premiums shown
C) Number of vehicles involved
D) Amount of surcharge to be applied to the policy

Answer 5

D) Amount of surcharge to be applied to the policy

Question 6

A Medical Payments claim will be paid by the insurer within how many months from the date of the occurrence?

A) 18
B) 24
C) 36
D) 60

Answer 6

C) 36

Question 7

Which of the following uses of a vehicle is not excluded under the Medical Payments coverage?

A) Insured uses a truck for incidental purposes
B) A neighbor uses the insured’s car without permission
C) An insured drives a company car
D) An insured rides a motorcycle

Answer 7

A) Insured uses a truck for incidental purposes

Question 8

Which of the following is covered under Part C - Uninsured Motorist Coverage?

A) Punitive damages awarded for the insured
B) Accident was caused by a hit-and-run driver
C) The insured is also covered by Workers’ Compensation
D) A family member is struck by an insured vehicle

Answer 8

B) Accident was caused by a hit-and-run driver

Question 9

An uninsured motor vehicle is any of the following, EXCEPT:

A) A company car
B) A vehicle that does not have insurance
C) A vehicle insured by an insolvent insurance company
D) A vehicle with liability limits less than the state requirement

Answer 9

A) A company car

Question 10

Comprehensive covers all of the following losses, EXCEPT:

A) Falling objects
B) Theft
C) Contact with a deer
D) Rollover

Answer 10

D) Rollover

Question 11

The insurer’s limit of liability for a vehicle damaged by a loss under Part D is which of the following?

A) Actual Cash Value
B) Replacement Value
C) The lesser of actual cash value and replacement value
D) The greater of actual cash value and replacement value

Answer 11

C) The lesser of actual cash value and replacement value

Question 12

Which of the following is not a duty of the insured if the insured if the insured’s vehicle is damaged when it hit a tree?

A) Submit a proof of loss
B) Call the police
C) Promptly notify the insurance company
D) Submit to a physical exam

Answer 12

B) Call the police

Question 13

If an insurer non-renews an insured’s policy for underwriting reasons, what is the minimum number of days’ notice to the insured?

A) 20
B) 30
C) 45
D) 60

Answer 13

A) 20

Question 14

After an automobile policy has been in effect for 60 days, the insurer may cancel the policy for any of the following reasons, EXCEPT:

A) Non-payment premium
B) Material misrepresentation of information on the application by the insured
C) Submission of four or more claims during a single policy period
D) Suspension of the driver’s license of the named insured’s or household resident

Answer 14

C) Submission of four or more claims during a single policy period

Question 15

What is the purpose of the Extended Non-owned coverage for a Named Individual endorsement?

A) Coverage is extended 25 miles into Mexico
B) Covers non-owned vehicles furnished for the insured’s regular use
C) Covers an individual who does not own a car
D) Extends coverage for a leased vehicle

Answer 15

B) Covers non-owned vehicles furnished for the insured’s regular use

Question 16

What is Part A on PAP?

Answer 16

Liability

Question 17

What is Part B on PAP?

Answer 17

Medical payment

Question 18

What is Part C on PAP?

Answer 18

Uninsured/Underinsured

Question 19

What is Part D on PAP?

Answer 19

Damage to your auto

Question 20

What is Part E on PAP?

Answer 20

Duties after a loss

Question 21

What is Part F on PAP?

Answer 21

General provisions

Question 22

Legal right to go after the responsible 3rd party

Answer 22

Subrogation

Question 23

• Any business that has cars
• symbol 1-19
  EX: edible arrangements

Answer 23

Business auto

Question 24

• Is for business in the business of cars
• park, sell, or service vehicles
• symbol 21-31

EX: car wash, repair shop, car dealership, a parking garage

Answer 24

Garage auto

Question 25

- Take in customers' cars - legally obligated to pay for loss or damage to customer's vehicle/equipment while in insured's care - servicing, repair, parking, or storing - symbol 30

Answer 25

garagekeeper

Question 26

provide insurance for the unique exposures of common carriers and contract carries

Answer 26

Truckers coverage form and the motor carrier coverage form

Question 27

covers business exposures of a firm transporting goods of others for hire and transporting their own property

Answer 27

Motor Carrier Coverage Form

Question 28

covers business exposures of motor carriers for hire that transport the goods of other

Answer 28

Truckers Coverage Form