*TB - Personal Auto Insurance

Question 0

Damage to a windshield by a bird would be covered under:

Collision

Comprehensive

Liability

All of the above

Answer 0

Comprehensive

Question 1

The insured is hit in the rear while stopped at a traffic light. The insureds company pays for his repairs then seeks reimbursement from the responsible party. This is described as:

Subrogation

Reimbursement

Arbitration

Appeal

Answer 1

Subrogation

Question 2

The personal auto policy provides coverage in all of the following locations, except:

Hawaii

Mexico

Canada

Alaska

Answer 2

Mexico

Question 3

Ms. Poster carried 15/30/5 limits on an auto when he negligently ran into a parked car containing three occupants resulting in the following claims:

Tom - B.I. - $18,000 and P.D. - $8,000

Dick - B.I. - $8,000

Harry - B.I. - $4,000

In addition to these settlement awards, there was $18,000 in legal fees. In response to this accident, Pfister’s PAP will pay:

$32,000

$38,000

$50,000

$68,000

Answer 3

$50,000

This is an example of a split limit claim.

Payment is a follows:

Tom $15,000; PD $5,000

Dick $8,000

Harry $4000

Totals - $32,000

The defense costs ($18,000) are covered and paid by the insurer, which brings the total to $50,000

Question 4

After a loss, the insured must:

Notify the company

Permit the company to inspect a damaged auto before repairs are started

Submit to physical exam if needed

All of the above

Answer 4

All of the above

Question 5

All of the following are Physical Damage exclusions, except:

Loss to vehicle used as a liver

Damage due to wear and tear

Loss to audio tapes

Loss to permanently installed car telephone

Answer 5

Loss to permanently installed car telephone

Question 6

The insurers will pay transportation expenses under the PAP beginning ___________ after a theft of the insured automobile.

24 hours

48 hours

72 hours

96 hours

Answer 6

48 hours

Question 7

Under the PAP, the insurer will pay for transportation expenses up to which of the following amounts?

$10 per day; $300 maximum

$20 per day; $500 maximum

$15 per day; $300 maximum

$20 per day; $600 maximum

Answer 7

$20 per day; $600 maximum

Question 8

A c, traveling at high speed, skids at a turn and Rollins over. The damage incurred would be covered under which of the following personal auto coverages?

Collision

Comprehensive

Uninsured motorist

P.D. Liability

Answer 8

Collision

Question 9

A stolen car is covered under which of the following personal auto coverages?

Collision

Comprehensive

Uninsured motorist

P.D. Liability

Answer 9

Comprehensive

Question 10

As a result of an auto accident, the insured sustained bodily injury worth $50,000.

The responsible party carried auto liability insurance in the amount of $15/30/5. The insureds $100,000 under insurance coverage would pay:

$15,000

$35,000

$50,000

$100,000

Answer 10

$35,000

The purpose of underinsured motorist coverage is to pay the difference in the amount payable by the negligent party and the actual damages sustained by the insured

Question 11

The purpose of “underinsured motors” coverage is to:

Provide coverage for a “hit-and-run” driver

Pay for injuries sustained by insured who have been injured when the at fault driver carries auto limits less than the financial responsibility of the state in which the insured was injured

Provide coverage for the insured when the at fault driver carries less coverage than that needed to pay for the insureds injuries

Provide coverage when the at-fault drivers insurance company denied the claim

Answer 11

Provide coverage for the insured when the at fault driver carries less coverage than that needed to pay for the insureds injuries

Question 12

An uninsured motor vehicle includes:

An insured vehicle whose insurer denies coverage

An insured vehicle whose insurers becomes insolvent

A “hit and run” vehicle

All of the above

Answer 12

All of the above

Question 13

The PAP Medical Payments cover:

The insured as driver

A passenger

The insured as pedestrian

All of the above

Answer 13

All of the above

Question 14

Under the PAP Medical Payments, the time limit for incurring medical expenses is:

6 months

1 year

2 years

3 years

Answer 14

3 years

Question 15

The PAP liability coverage excludes all of the following, except:

Intentional

Damage to insured property

Damage to property of others in the insureds care

Damage to property of others due to the insureds motor vehicle negligence

Answer 15

Damage to property of others due to the insureds motor vehicle negligence

Question 16

All of the following are considered under the PAP, except:

Any person using the insured auto

A family member using the insured auto

Any organization the insured represents

Any person using an auto not owned by the insured

Answer 16

Any person using an auto not owned by the insured

Question 17

An auto liability policy with splits limits 15/30/5 would pay what maximum amount in the even if a covered bodily injury loss to three people?

$5,000

$15,000

$30,000

$45,000

Answer 17

$30,000

The limit of $30,000 is the max that can be paid for all injured persons and no more than $15,000 per person

Question 18

An auto liability policy with split limits of $10/20/5 would pay how much in the event of a $10,000 loss to the other persons damaged vehicle?

$0

$5,000

$10,000

$20,000

Answer 18

$5,000

Question 19

An auto liability policy with a single limit of $30,000 would pay which of the following amounts in the even of a $10,000 loss to the insured vehicle and a $25,000 bodily injury settlement to a third party?

$10,000

$25,000

$30,000

$35,000

Answer 19

$25,000

In this question we are not concerned about the damage to the “insureds” vehicle but rather the coverage that would apply under the liability portion of the PAP

Question 20

Under the PAP, a covered auto includes all of the following, except:

Temporary substitute

Non-owned auto

Private passenger auto listed in the declarations

An owned trailer

Answer 20

Non-owned auto

Question 21

Leased vehicles can be covered under the PAP if they are leased for a minimum of:

30 consecutive days

60 consecutive days

6 consecutive months

1 year

Answer 21

6 consecutive months

Question 22

A deer crashes into the side of the insureds car. Which of the following PAP’s coverages would cover this damage?

Property damage liability

Collision

Uninsured motorist property damage

Comprehensive

Answer 22

Comprehensive

Question 23

Which of the following would be covered under a PAP?

A truck the insured rented that is over 10,000 gross vehicle weight

A three wheeled vehicle used in a medical emergency

A motor cycle

A large rented motor home

Answer 23

A three wheeled vehicle used in a medical emergency

Question 24

An uninsured motorist vehicle under the personal auto policy includes all of the following except:

Hit and run vehicle whose driver can not be identified

A vehicle newly acquired by the named insured

A vehicle insured by the company that is insolvent

A vehicle to which no liability bond or insurance policy provides coverage at the time of the accident

Answer 24

A vehicle newly acquired by the named insured

Question 25

What is the limit for damage to a non-owned trailer under the personal auto policy?

$500

$1,000

$1,500

$2,000

Answer 25

$1,500