Personal Auto Policy (PAP) Flashcards
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
C) 14
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
B) 6
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
C) Temporary Substitute
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
A) Payment for all defense costs
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
D) Amount of surcharge to be applied to the policy
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
C) 36
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
A) Insured uses a truck for incidental purposes
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
B) Accident was caused by a hit-and-run driver
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
A) A company car
Comprehensive covers all of the following losses, EXCEPT:
A) Falling objects
B) Theft
C) Contact with a deer
D) Rollover
D) Rollover
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
C) The lesser of actual cash value and replacement value
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
B) Call the police
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
A) 20
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
C) Submission of four or more claims during a single policy period
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
B) Covers non-owned vehicles furnished for the insured’s regular use
What is Part A on PAP?
Liability
What is Part B on PAP?
Medical payment
What is Part C on PAP?
Uninsured/Underinsured
What is Part D on PAP?
Damage to your auto
What is Part E on PAP?
Duties after a loss
What is Part F on PAP?
General provisions
Legal right to go after the responsible 3rd party
Subrogation
- Any business that has cars
- symbol 1-19
EX: edible arrangements
Business auto
- 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
Garage auto
- 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
garagekeeper
provide insurance for the unique exposures of common carriers and contract carries
Truckers coverage form and the motor carrier coverage form
covers business exposures of a firm transporting goods of others for hire and transporting their own property
Motor Carrier Coverage Form
covers business exposures of motor carriers for hire that transport the goods of other
Truckers Coverage Form
