self-assessment quizzes

Question 1

Randy was driving through a wooded area late at night when a deer ran in front of his car. Randy’s car hit the deer, causing extensive damage to the car. Which of Randy’s Personal Auto Policy (PAP) coverages will cover the damage to Randy’s car?

Answer 1

other than collision loss coverage

Question 2

Which of the following statements is (are) true with respect to an unendorsed Personal Auto Policy (PAP)?
I. Your PAP covers you while you are driving in Mexico.
II. In addition to paying up to the limit of liability if the insured is negligent, the insurer also pays legal defense costs.

Answer 2

2 only

Question 3

All of the following are exclusions under the liability coverage of the Personal Auto Policy (PAP) EXCEPT

Answer 3

temporary substitute vehicles

Question 4

After you have been involved in an auto accident, you should do all of the following EXCEPT

Answer 4

admit fault if you believe you are at fault.

Question 5

Which of the following statements is (are) true with respect to the medical payments coverage of the Personal Auto Policy (PAP)?
I. Medical payments benefits are paid regardless of fault.
II. If the insured negligently injures another driver while operating the insured auto, injuries to the other driver are paid under the insured’s medical payments coverage.

Answer 5

1 only

Question 6

Helen carries liability limits of 50/100/25 under her Personal Auto Policy (PAP). Jason carries liability limits of 100/300/50 under his PAP. Jason borrowed Helen’s auto with her permission. While driving Helen’s car, Jason caused an accident in which the driver of the other car suffered bodily injuries totaling $80,000. How will this claim be settled?

Answer 6

Helen’s insurer will pay $50,000 and Jason’s insurer will pay $30,000

Question 7

Carl lost control of his vehicle on an icy road. His car slid off the road and hit a tree. The physical damage to Carl’s vehicle will be covered under which of Carl’s Personal Auto Policy (PAP) coverages?

Answer 7

collision coverage

Question 8

Uninsured motorists coverage under the Personal Auto Policy (PAP) pays for the bodily injury of an insured in all of the following situations EXCEPT:

Answer 8

bodily injury caused by a business vehicle.

Question 9

If your covered auto is damaged in a collision, what is the insurer’s liability for the damage under the Personal Auto Policy (PAP)?

Answer 9

the lesser of the actual cash value of the loss or the amount necessary to repair or replace the vehicle.

Question 10

All of the following statements regarding “Part D: Coverage for Damage to Your Auto” under the Personal Auto Policy are true EXCEPT

Answer 10

Part D coverages only apply if the insured was not responsible for causing an accident.

Question 11

A few states handle the problem of providing auto insurance to high-risk drivers by placing high-risk drivers in a common pool. The same insurance policy is used to insure each of these drivers, and each insurer operating in the state pays its pro rata share of pool losses and expenses. This approach is called a(n)

Answer 11

joint underwriting association

Question 12

All of the following are measures that states have adopted to help assure that innocent auto accident victims are compensated for their injuries EXCEPT

Answer 12

safe driver plans

Question 13

Chuck just purchased a new sports car. His previous car, a late model sedan, was destroyed in an accident that Chuck caused because he was speeding. Chuck’s auto insurance consists of liability coverage, medical payments coverage, uninsured motorists coverage, and physical damage coverage written without a deductible. Chuck just learned that his auto insurance on the new vehicle will cost over three times what he was paying previously on the sedan. All of the following will help Chuck reduce his premiums EXCEPT

Answer 13

driving the vehicle more miles every week

Question 14

Under which type of no-fault auto insurance plan can an injured person sue a negligent driver only if the bodily injury claim exceeds a dollar or verbal threshold?

Answer 14

modified no fault plan

Question 15

All of the following are arguments against no-fault auto insurance laws EXCEPT

Answer 15

fault is difficult to determine.

Question 16

All of the following factors affect the premium you are charged for auto insurance EXCEPT

Answer 16

your ethnic heritage

Question 17

Which of the following statements is (are) true with respect to uninsured motorists coverage?
I. Claim settlement is faster and more efficient under uninsured motorists coverage than under the tort liability system.
II. Insureds who purchase uninsured motorists coverage collect from their own insurer if they are injured by an uninsured motorist.

Answer 17

both 1 and 2

Question 18

The majority of states handle the problem of providing auto insurance to high-risk drivers by assigning each insurer its proportionate share of high-risk drivers based upon the insurer’s share of auto insurance written in the state. Thus, an insurer that writes 6 percent of the auto insurance premiums in the state is assigned 6 percent of the high-risk drivers. This type of plan is called a(n)

Answer 18

automobile insurance plan

Question 19

One step that states have taken to protect innocent accident victims is to require vehicle operators to furnish proof that they can pay legal claims up to a specified dollar limit. Such proof is required after the driver has been involved in an accident or convicted of certain offenses, such as driving under the influence of alcohol. This provision is called a(n)

Answer 19

financial responsibility law

Question 20

Which of the following statements is (are) true with respect to shopping for auto insurance?
I. You should consider dropping liability insurance once your car is six or more years old.
II. You should purchase only the minimum limits of liability insurance necessary to satisfy your state’s financial responsibility law.

Answer 20

neither 1 or 2