Study 9

Question 1

Covers damage to, or the loss of use of, an automobile or its contents, to the extent that the driver of another vehicle was at fault for the accident. It is called “direct compensation” because, even though someone else caused the damage, the insured person collects directly from their insurer instead of from the person who caused the accident.

Answer 1

direct compensation–property damage (DCPD)

Question 2

An item of coverage in an automobile physical damage policy that insures against loss or damage resulting from the act of striking against something with force or from tipping over.

Answer 2

collision or upset insurance

Question 3

An arrangement set up by means of a website or mobile app in which a passenger travels in a private vehicle driven by its owner, for free or for a fee.

Answer 3

ridesharing