Unit 8

Question 1

Casualty Coverages

Answer 1

– Liability
– Medical payments
– Uninsured/underinsured motorists

Question 2

Property Coverages

Answer 2

Collision

– Other than Collision (comprehensive)

Question 3

Personal Auto

Family Member

Answer 3

any person related to the named insured or spouse who is a resident of the named insured’s household.

Question 4

Personal Auto

Cancellation

Answer 4

Insured may cancel at ANY time.

Insurer must provide written notice of cancellation or nonrenewal.

Question 5

Personal Auto

Assigned Risk Plan

Answer 5

High-risk insureds

Assigned to an insurance company Usually only liability coverage

Question 6

Personal Auto

Insureds

Answer 6

Named insured and resident spouse
Resident family members
Any person who borrows a covered auto with the permission of any insured

Question 7

Personal Auto

Supplementary (Additional) Payments

Answer 7

BAILED

Question 8

Personal Auto

Liability Exclusions

Answer 8

Intentional injury or damage
■ Injury to an insured
■ Damage to property owned or transported by an insured
■ Injury to an employee
■ Using the vehicle as a taxi (carpool is OK)
■ Use of the vehicle without permission
■ Vehicles less than four wheels or not licensed for road use
■ Vehicles used for racing

Question 9

Personal Auto

Split Limits of Liability

Answer 9

– Separate limits for bodily injury

– Separate limit for property damage

Question 10

Personal Auto

Financial Responsibility Laws

Answer 10

■ State-required proof of ability to pay for damages

■ Usually mandated auto liability insurance

Question 11

Out-of-State Liability Coverage

Answer 11

– policy limits; or

– other state’s required limits