Section 2: Lesson 3 The Texas Personal Auto Policy

Question 1

The minimum limit of financial responsibility under Texas law is:

Answer 1

30/60/25

Question 2

What does 30/60/25 means?

Answer 2

It means we’ll pay up to $30k for BI to any one individual, up to $60k for any one accident, no matter how many people are injured, and up to $25k for property damage.

Question 3

What if case goes to to trial and I lose and there is nothing left because of attorney fees, will my policy limits be enough?

Answer 3

Defense costs are paid in addition to the applicable policy limit, and in most cases, are unlimited

Question 4

Roy has a personal auto policy covering his 2007 corvette and $30k single limit policy. Due to an accident, he incurs the following expenses: $5k in legal defense costs, a $35k judgement against him for bodily injury and property damage. How much will his policy pay?

Answer 4

$30,000 for judgement and $5000 for legal fees

Question 5

Your sister lives in ohio. she has an auto policy with that states min limits of 10/20/10. While on vacation in Dallas, she causes an auto accident that is her fault. Damage to the other vehicle is $12,500 the other driver receives a $25k judgement for BI, and she incurs defense costs of $9,875. How much will her policy pay if it automatically adjusts to Texas higher minimum limit 30/60/25?

Answer 5

Her policy pay $12,500 for the property damage, the $25k BI judgement and $9,875 for legal expense.

Question 6

An insurance company must give how many day of notice for cancellation of a policy of the policyholder does not pay he/her premium:

Answer 6

10 days

Question 7

Who is insured under business auto policy?

Answer 7

The named insured and anyone using covered auto with permission, such as partner, employee etc

Question 8

A business auto policy with symbol # 7 indicating physical damage and uninsured motorist coverage. Which autos are covered?

Answer 8

specifically described autos only