Unit 8

Question 1

damage to your auto exclusions - Part D

Answer 1

• used as a public or livery conveyance
• wear & tear, freezing
• electronic equipment that reproduces, receives or transmits audio, visual etc
• destruction/ confiscation by government or civil authorities
• non- owned autos being used by any person engaged in an auto business
• custom furnishings or equipment in a pick up or van

Question 2

collision - Part D

Answer 2

contact with another object
overturn

points assed
while moving

Question 3

transportation expense - Part D

Answer 3

• due to physical damage to covered auto
• temporary transportation expenses, rental car, bus fare, taxi fare, train fare
  $20 a day - maximum $600
  48 hour waiting period for theft losses
  24 hour waiting period for other types of loss

Question 4

other than collision - Part D

Answer 4

• missiles or falling objects
• fire or windstorm
• theft or larceny
• explosion or earthquake
• hail, water, flood
  no points assed/ while still
• animal or rock chip, does not cover personal property in vehicle

Question 5

Part D

Answer 5

coverage for damage to your auto (physical damage)
property
pays for direct and accidental loss to the named insured’s covered auto or any non-owned auto against loss caused by collision or other than collision

Question 6

newly acquired auto - Part C

Answer 6

• automatically has same coverage as current covered autos for 14 days
• must be specifically added to policy within those 14 days
• collision and other than collision
• coverage is already on policy, report within 14 days
• no coverage, must request coverage in 4 days
• loss occurs within first 4 days and insured has complied with notification
  $500 deductible will apply

Question 7

appraisal - Part C

Answer 7

settlement option regarding value of loss disputes

• insured & insurer each select appraiser
• each party pays cost of its own appraiser
• two appraisers then select an umpire
• cost of umpire split between the two parties
• amount agreed upon by two out of the three is amount paid for the loss

Question 8

arbitration - Part C

Answer 8

• not limited to disputes over the value of the loss
• insurer refuses to honor & pay a claim filed by the insured
• insured feels they have a valid claim, but insurer does not

Question 9

underinsured motorist coverage - Part C

Answer 9

• pays when the at fault driver has liability insurance
• liability is less than the injured, family, or guest passengers bodily injury
• has insurance, doesn’t have enough coverage to pay

Question 10

other insurance - Part C

Answer 10

• prevents stacking of limits

- amount paid is limited to the highest single policy limit

Question 11

limits of uninsured motorists - Part C

Answer 11

• can be split or combined single limits

- usually can’t be greater than insured’s liability limits

Question 12

subrogation - Part C

Answer 12

• insurance company can sue the at-fault party for damages the company paid
• most policy’s

Question 13

uninsured motorists - Part C

Answer 13

• no liability at time of accident
• liability limits lower than state requirements
• hit & run driver (contact with the vehicle)
• insurance company insolvent
• insurance company denies coverage
• uninsured driver at fault

Question 14

Part C

Answer 14

uninsured motorist coverage
casualty
- pays the insured, family, and guest passengers for bodily injury, depending on the state property damage , bodily injury only (usually)

Question 15

limits of liability - Part B

Answer 15

single limit of liability applies each person injured

other insurance: if medical bills are paid by the insureds liability policy, they will not be paid again

Question 16

medical payments exclusions - Part B

Answer 16

• sustained while occupying a motor vehicle with less than 4 wheels
• sustained while using a covered auto as a public or livery conveyance
• losses covered under worker’s compensation
• while the insured is occupying a vehicle without the reasonable belief that they are entitled
• sustained while occupying a vehicle being used for a business
• during prearranged racing or speed event
• war

Question 17

Part B

Answer 17

medical payments coverage
casualty
- medical & funeral expenses with in 3 years regardless of fault
- occupying 
- as a pedestrain

Question 18

other insurance clause - Part A

Answer 18

• coverage states that the company will pay only its share of loss that is also covered by other insurance
• pro rata
• (policy limits/ total limits) X loss
• driving a non-owned auto, auto is primary coverage
• insured’s policy is excess (if needed)

Question 19

out- of- state liability coverage - Part A

Answer 19

higher of: policy limits

other states required limits

Question 20

Part A

Answer 20

liability coverage
casualty
- may be written alone or with any of the other coverages
- damages for bodily injury or property damage that an insured becomes legally responsible for because of an auto accident

Question 21

personal auto

Answer 21

casualty coverages
liability
medical payments
uninsured/underinsured motorists
property coverages
collision
comprehensive - now called 'other than collision'

Question 22

financial responsibility laws - Part A

Answer 22

state- required proof of ability to pay for damages

usually mandated auto liability insurance

Question 23

limits of liability - Part A

Answer 23

split limits
separate limits for BI and PD
combined single limit
limits vary by state

Question 24

liability exclusions - Part A

Answer 24

• intentional injury or damage
• injury to an insured
• damage to property owned/transported by an insured
• injury to an employee
• using the vehicle as a taxi
• use of vehicle without permission
• vehicles with less than 4 wheels
• vehicles used for racing

Question 25

bodily injury

Answer 25

bodily harm, sickness, disease, including or resulting in death

Question 26

occupying

Answer 26

in, upon, getting into, onto, out of, off, of a vehicle

Question 27

property damage

Answer 27

physical injury to destruction of

loss of use to tangible property

Question 28

covered auto

Answer 28

• private passenger autos
  four wheeled motor vehicles, pick up trucks, vans
• under certain weight classes, not for business
• owned or leased under long-term contract of 6 months or more

Question 29

termination

Answer 29

insured may cancel at any time

insurer must provide written notice of cancellation or nonrenewal

Question 30

policy territory

Answer 30

united states & its territories, canada
“where residence is”
mexico can be added by endorsement

Question 31

assigned risk plan

Answer 31

• high risk insureds
• assigned to an insurance company
• usually only liability coverage
• share poor risks
• randomly assigned

Question 32

family member

Answer 32

any person related to the named insured or spouse who is a resident of the named insured’s household
includes related by blood, marriage, adoption, award, or foster child

Question 33

you, your, named insured

Answer 33

shown in the declarations and the named insured’s spouse

- spouse must reside in the same household as the named insured

Question 34

other provisions - Part D

Answer 34

• physical damages losses are reimbursed for ACV
• lesser of ACV, repair, or replace
• maximum of $1,500 for damages to a non-owned trailer
• maximum of $1,000 for sound or audio not permanently installed by the manufacturer
• collision and OTC have deductibles
• no benefit to bailee
• insured allows company to inspect damage

Question 35

auto endorsements - Part D

Answer 35

• joint ownership coverage not married or unrelated
• towing and labor costs a place of disablement
• extended non-owned coverage company cars
• miscellaneous vehicles - less than 4 wheels
• named non-owner coverage borrowed or rented autos