Unit 7 Quiz Flashcards
Under Texas personal injury protection (PIP) coverage, the injured first party to an auto accident…
… is reimbursed by his own insurance company
Which of the following losses would be paid under Part D of the PAP?
A PERMANENTLY installed tape player was damaged when thieves attempted to remove it from the car.
WHY? Covered under OTC (Other than collision).
A PAP’s uninsured motorist coverage would apply to which of the following losses caused by an uninsured motorist?
Bodily injury to the insured.
Which of the following would NOT be added to a miscellaneous vehicle endorsement to the PAP?
Snowmobile.
WHY? It doesn’t have any wheels.
The PAP’s medical payments coverage would NOT provide protection for which of the following?
Occupants of a car that was struck by the insured.
WHY? Medical payments are only paid to 1st party & passengers of the 1st party’s vehicle in an auto claim.
The physical damage section of the PAP excludes.
Mechanical breakdown.
WHY? Insurance is not a maintenance policy.
The insured has a PAP with all cars insured by one company. He sells one of the cars, and buys a new one to replace it. Must the insured take any action for the liability portion of this current policy to apply to the replacement vehicle?
No, the insured does not have to do anything; liability coverage for a replacement vehicle is automatic.
Nicole has a PAP with limit of 10/20/10 for liability coverage. She causes and accident that results in $12K of BI damages to the other driver and $5K in PD to the other driver’s car. How much would Nicole’s policy pay for both the BI and PD losses?
$15K
The minimum split limits of liability required by Texas law are…
30/60/25
