Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Casualty > Section 3A > Flashcards

Section 3A Flashcards

0
Q

Split limit policy is commonly expressed as

A

30/60/25

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

Every motor vehicle operated on a state highway , except farm vehicles that are operated only incidentally, must

A

Satisfy the minimum financial responsibility requirements through certificate of insurance, surety bond, certificate of deposit , cash held by treasurer, or an auto liability insurance policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Excess limits

A

Higher than required limits for a slightly higher premium

Ex: 100/300/50 are common

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Some insurers also offer

A

Combined single limits (CSL)

This is written with one policy limit and applies to BI and PD together

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

UM (Uninsured Motorists) usually covers

A

BI only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

BI liability is for the other party you injure, while UM liability is for

A

You and your passengers in case you are injured by an uninsured motorist and it is his or her fault

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Most auto liability policies also have supplementary or additional coverages that may

A

pay in addition to the policy limits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Personal Auto Policy (PAP) is the

A

Broadest type of personal lines auto policy sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The business auto policy is designed for vehicles

A

in commercial use, such as pickup and delivery of goods or merchandise.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

‘Business Use’ is the

A

Use of a vehicle in sales, by a person such as a real estate agent or perhaps an insurance agent. It requires higher rates.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Auto Insurance rates depend on who is

A

Driving the car and where the car is being driven

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Rate Classifications are based on

A

Age
Gender
Driving Record
Territory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Rate differences are based on

A

Verifiable statistical data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The worse the driving record,

A

The higher the rates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Liability insurance (BI and PD)

A

Is to others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

There are three areas of auto insurance you should be fully aware of

A

Rates
Underwriting
Coverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

In the process of underwriting, the underwriter considers and investigates the application, and upon

A

Acceptance, and signs her name on the application.

She may look at the MVR or Comsumer Investigative Report.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

If the underwriter disagrees with the agent, the agent is given the opportunity to supply

A

Additional information that may make a difference in the underwriter’s decision. If it does not, it may be rejected if the risk was too great.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

No auto policy

A

Covers motorcycles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

PAP (Personal Auto Policy) has the following parts

A

Part A- Liability (BI and PD to others)
Part B- Medical Payments (pays medical and
funeral expenses resulting from a
covered event to you and your
passengers)
Part C- Uninsured Motorists (covers BI to an
insured caused by an owner or
operator of an at-fault uninsured veh)
Part D- Damage to Your Auto (covers your
insured veh for damage by collision
or other than collision , if either or
both are declared)
Part E- Duties After an Accident (insured must
notify the insurer ASAP after loss and
must cooperate with insurer’s
investigation)
Part F- General Provisions (lays out various
legal and financial obligations
relating to both insurer and insured)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Declarations page

A

Tells who is insured,what type of property(auto) is insured, the policy limits, and the policy period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Part A-Insuring Agreement

A

“We will pay damages for bodily injury or property damage for which any insured becomes legally responsible because of an auto accident.”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Bodily Injury

A

Bodily harm, sickness or disease, including death that may result.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Property Damage

A

Physical injury to, destruction of , or loss of use of tangible property.

24
Q

Insured is defined as

A

You (named insured or spouse) or any family member ,
Any person using any covered auto, and
Any person or organization for a covered auto.

25
Q

‘Family Member’

A

A person related to you by blood, marriage, or adoption who is a resident of your HH

26
Q

Order of Precedence

A

The owner’s policy is always primary.

The driver’s policy, if any, is always excess.

27
Q

The owner’s policy

A

Pays first and the driver’s policy pays any excess above the limits of the owner’s policy

28
Q

Contractual Liability

A

Once the owner’s policy limits have been exhausted will the excess insurance be responsible for further damages to the injured party.

29
Q

A trailer is automatically

A

Covered for liability insurance without charge

30
Q

Covered Auto

A

Any veh on Dec page
Any additional auto newly acquired (notify within 14 days)
Newly Acquired Vehicle Replacement
Any trailer you own
Non-owned vehicle used as a temporary substitute

31
Q

Part A-Insuring Agreement

A

“We will settle or defend …any claim or suit…In addition to our limit of liability , we will pay all defense costs we incur.”

Cost of Defense is in the Insuring Agreement!

32
Q

Part A-Supplementary payments included at no additional charge. They are in addition to limits.

A

$250 bail bonds (due to accident not traffic fines)
Appeal Bonds and Interest

Loss of Earnings up to $200 per day

33
Q

Part A exclusions

A 
Intentional acts
Your own property in transit
Injury to Employees
Taxi or Livery
Auto business 
Commercial usage
Using a vehicle without permission
Non-owned vehicle furnished for your regular use
34
Q

Part A Out of State Coverage

The PAP will automatically

A

Conform to the state laws of any state in which you happen to be driving.

35
Q

There is no coverage in

A

Mexico or any foreign country other than Canada.

36
Q

Part A financial responsibility: The PAP is acceptable as

A

Proof of financial responsibility in all states.

37
Q

Evidence of liability insurance as proof of financial responsibility is often required after a person is involved in an

A

Uninsured accident, has been convicted of a major traffic violation, or has been found to have violated the state mandatory insurance law.

38
Q

SR-22 filing

A

A form indicating a promise to notify the state if his or her insurance policy is canceled for any reason

39
Q

Part B-Medical Payments Coverage

A

Part B-Insuring Agreement: Auto medical is an optional coverage. It is not liability coverage, but provides coverage for reasonable expenses incurred, within 3 years from the date of the accident, for necessary medical and funeral services.

40
Q

The insuring agreement goes on to define insured in this part as:

A
  1. The named insured, spouse, or any family member while occupying , or as a pedestrian when struck by, a motor veh designed for use mainly on public roads
  2. Any other person who is occupying a covered auto
41
Q

Part B limits of liability

A

No fault coverage

It’s for injuries sustained by you and your passengers…..

42
Q

Part C insuring agreement: UM (uninsured motorists)

A

Liability coverage purchased on your own policy in case you or your passengers are injured by another motorist who is negligent and has no auto liability insurance. It also covers if you are injured by a hit-and-run driver.

43
Q

Uninsured Motor Vehicle

A

No liability policy
Policy for liability written for lower limits than specified by state law
Hit and run vehicle
Has liability policy but insurer denies coverage or is insolvent

44
Q

UM (Uninsured Motorists)coverage

A

For BI only!!!!

45
Q

If an UM (Uninsured Motorist) caused property damage to your insured auto,

A

You turn in your claim under Part D (Collision)

46
Q

UM limits must match the

A

State Minimums for BI

47
Q

UIM (Underinsured Motorists) Coverage

You pay the additional premium.

A

This only applies when the other party who negligently injures you has insurance but NOT enough.

48
Q

Part D Insuring agreement

A

Optional coverage to protect your own car

Part D premiums are based primarily on the value of the car you are insuring.

It has two separate coverages: collision and other than collision

49
Q

Collision

A

Upset of your covered auto or its impact with another vehicle or object

50
Q

Other than Collision (OTC)

A 
Missiles 
Falling objects
Fire
Theft or larceny
Explosion or earthquake
Windstorm 
Hail, water, or flood 
V&MM 
Riot
Contact with bird or animal
Breakage of glass
51
Q

Part D promises to pay for direct and accidental loss to either your covered auto or any non-owned auto but not

A

A temporary substitute

52
Q

Part D transportation expenses

No extra premium
No deductible
In addition to limits

A

$20 per day, up to a max of $600

53
Q

Part D Limit of Liability

If a claim occurs under part D, the company has the option of paying the ACV of the stolen or damaged property or repairing or replacing the car,

A

Whichever is cheaper.

54
Q

Appraisal

A

Used when insurer and insured do not agree on the ACV of the loss

Two appraisers and umpire

Decision made by two of the three parties

55
Q

Part E-Duties after an accident or loss

A

Requires that notice of claim be filed promptly and that the insured cooperate in the investigation, settlement, or defense of any claim or suit.

56
Q

Part F-General Provisions

Policy Territory

A

CUP= Canada, USA, and Puerto Rico

Additional general provisions relate to cnx and non-renewals (10 days notice for nonpayment)

57
Q

PAP Endorsements (with additional premium charge)

Named non-owner

A

Modified contract that covers non-owned vehicles only

This is sold only to non-owner drivers

58
Q

PAP Endorsements

Miscellaneous Type Vehicles

A

4 wheel passenger vehicles like a motor home, a motorcycle, a dune buggy, or a golf cart.

Add this special endorsement to modify the definition of a covered auto.

Casualty (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions