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P&C > Unit Eight Personal Auto Insurance > Flashcards

Unit Eight Personal Auto Insurance Flashcards

1
Q

What does the Personal auto policy(PAP) contain?

A

Property and liability coverages designed to insure an individual not a business

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2
Q

What does the personal auto policy consist of?

A

• declarations page
• policy form

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3
Q

What does the policy form contain?

A

Four separate coverages each with its own insurance agreement, exclusions, and conditions

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4
Q

What are the four coverages available to the named insured?

A

Casualty
•Part A
•Part B
•Part C

Property
•Part D

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5
Q

In personal auto what does part a cover?

A

Liability coverage

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6
Q

In personal auto what does part b cover?

A

Medical payments coverage

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7
Q

In personal auto what does part c cover?

A

Uninsured motorist coverage

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8
Q

In personal auto what does part d cover?

A

Coverage for damage to your auto (physical damage)

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9
Q

What does the definitions section do?

A

Provides terms to help clarify the intent of various coverages and conditions.

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10
Q

What are the words you and your referred to in the declarations?

A

The named insured

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11
Q

Those related by blood marriage or adoption and ward or foster children would be referred to as?

A

Family member

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12
Q

What does bodily injury mean?

A

Bodily harm, sickness or disease, including resulting death

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13
Q

What does property damage mean?

A

Destruction of or loss of use of tangible property

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14
Q

What does covered auto typically include coverage to?

A

Any vehicle listed in the declarations newly acquired autos trailers or any auto or trailer temporally substituting

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15
Q

What does the termination provision describe?

A

• insured may cancel anytime
• insurer must provide written notice a cancellation or nonrenewal

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16
Q

What coverage territory is included in the policy territory listed on declarations page

A

The coverage territory includes the United States. It’s territories and possessions, Puerto Rico and Canada.

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17
Q

What happens when an insurance company cancels or non-renews an auto insurance policy?

A

The insurance company must notify the insured of their eligibility for the assigned risk plan (AIP) in their state

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18
Q

Why would someone require an assigned risk plan or automobile insurance plan?

A

Due to the driver having a poor driving record

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19
Q

In most cases would do most drivers with the assigned risk plan only have issued?

A

Liability coverage

20
Q

Who is an insured?

A

• named insured and resident spouse
• resident family members
• any person who borrowed a covered with the permission of any insured

21
Q

What does supplementary payments included? Remember the acronym BAILED

A

Bonds
Aid
Interest
Loss of earnings
Expenses
Defense costs

22
Q

What are additional coverages?

A

Paid in addition to limit of liability

23
Q

What are the liability exclusions?

A

•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
• use of the vehicle without permission
• vehicles, less than four wheels or not licensed for road use
• vehicles used for racing

24
Q

What is the minimum liability in Minnesota?

A

30/60/10

25
Q

What are the three limits of liability expressed as?

A

• split limits (separate limits for bodily injury or death in separate limits for property damage)
• combined single limit
• limits vary by state

26
Q

What is combined single limit cover?

A

Bodily injury and property damage

27
Q

What are split limits?

A

Usually expressed as a series of three numbers, for example100/300/50
Meaning
100K per person injury or death
300k per accident, bodily injury or death
50K per accident for property damage

28
Q

What are split limits?

A

Usually expressed as a series of three numbers, for example100/300/50
Meaning
100K per person injury or death
300k per accident, bodily injury or death
50K per accident for property damage

29
Q

Where are financial responsibility laws found?

A

Underpar a of the personal auto policy

30
Q

What do the financial responsibility laws require?

A

• state required proof of ability to pay for damages
• usually mandate it auto liability insurance insurance

31
Q

What is the out-of-state coverage provision, modify?

A

The personal auto policy to meet other states financial responsibility requirements and other states laws concerning out of state drivers when the covered auto is being driven in that state

32
Q

Who is insured under part B coverage?

A

The named insured and any family member(s)
Any other person while occupying the named insured covered auto(s)

33
Q

What does part B cover?

A

Reasonable expenses for necessary, medical and funeral services incurred within three years of the date of injury, regardless of fault

34
Q

What is the single limit of liability in Minnesota?

A

$20,000

35
Q

What does a single limit of liability apply to?

A

Each person injured

36
Q

What does other insurance do?

A

Prevent two insurance companies paying a duplicate payment

37
Q

Under part C uninsured motors coverage pays for?

A

The insured, family and guest passengers for bodily injury, and in some states property damage as a result of the accident

38
Q

What does subrogation mean?

A

Insurance company can sue the at fault party

39
Q

What does having uninsured motors coverage do

A

Pays when the asphalt driver has liability insurance. Liability is less than the insured, family or guest passengers, bodily injury.

40
Q

When is appraisal used?

A

When both parties (insurer and insured) agree, there is a valid claim, but cannot agree on the amount that should be paid

41
Q

When is arbitration used?

A

When the insurer refuses to honor and pay a claim filed by the insured

42
Q

Where would the newly acquired auto policy be listed?

A

The declarations page

43
Q

What does newly acquired auto coverage do

A

• automatically has broadcast coverage as current covered auto for 14 days
• must be specifically added to policy within those 14 days

44
Q

What does part D coverage for damage to your auto pay for?

A

Direct an accidental loss to the named insured coverage auto or any non-owned auto against lost caused by collision or other than collision

45
Q

What does ERS stand for?

A

Emergency
Roadside
Service

46
Q

What does ERS stand for?

A

Emergency
Roadside
Service

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