Question 1

In the Personal Automobile Policy, "your covered auto" includes all of the following except:

Accepted Answer

A) any car listed on the declarations page 
B) a newly acquired auto 
C) your trailer, if being towed by a passenger car, pickup, panel truck, or van 
D) a motorcycle, just as long as it is not borrowed 
A) any car listed on the declarations page 
B) a newly acquired auto 
C) your trailer, if being towed by a passenger car, pickup, panel truck, or van 
D) a motorcycle, just as long as it is not borrowed D

Question 2

A PAP is issued with both Collision and Other than Collision coverages.Two valuable cameras are stolen from the car. The cameras would be paid for by:

Accepted Answer

A) Other than Collision coverage 
B) Collision coverage 
C) a homeowner's policy, if one is in force 
D) the PAP, but ONLY if there are visible signs of forcible entry on the auto 
A) Other than Collision coverage 
B) Collision coverage 
C) a homeowner's policy, if one is in force 
D) the PAP, but ONLY if there are visible signs of forcible entry on the auto C

Question 3

All of the following persons are covered under Larry's PAP except:

Accepted Answer

A) Larry's wife borrows a neighbor's car 
B) Larry's son borrows a friend's car to get to work 
C) Larry while driving a car he borrowed from his employer to run an errand 
D) Larry while driving a borrowed commercial wrecker truck to tow his car to a repair garage 
A) Larry's wife borrows a neighbor's car 
B) Larry's son borrows a friend's car to get to work 
C) Larry while driving a car he borrowed from his employer to run an errand 
D) Larry while driving a borrowed commercial wrecker truck to tow his car to a repair garage D

Question 4

A tornado causes the garage to collapse on Mr.Woody's car,and the damage to the car is $5,000. Mr.Woody has a PAP with both Collision and Other than Collision coverages. A $200 deductible applies to the Collision coverage. There is a $0 deductible on Other than Collision coverage. How much is paid by the PAP for the tornado damage?

Accepted Answer

A) $0 
B) $4,000 
C) $4,800 
D) $5,000 
A) $0 
B) $4,000 
C) $4,800 
D) $5,000

Question 5

You are in an automobile accident with an uninsured motorist,and the accident is your fault. Your Uninsured Motorist limits are 10/20 and your medical bills are $22,000.You collect from your UM coverage:

Accepted Answer

A) $0 
B) $10,000 
C) $20,000 
D) $22,000 
A) $0 
B) $10,000 
C) $20,000 
D) $22,000

Question 6

The PAP's coverage territory is the USA,Puerto Rico,US Territories and Possessions,and countries bordering the USA.

Accepted Answer

A) True 
 B)False

Question 7

The PAP coverage that pays the largest claims,and is possibly the most important coverage is:

Accepted Answer

A) Other than Collision 
B) Medical Payments 
C) Liability 
D) Collision 
A) Other than Collision 
B) Medical Payments 
C) Liability 
D) Collision

Question 8

Latisha runs over a deer with her car. The ACV of her vehicle is $7,250. To repair the damages will cost $4,375.What will the insurer likely pay Latisha for this claim,assuming that her Collision deductible is $500,and her Other Than Collision deductible is $200?

Accepted Answer

A) $3,875 
B) $4,175 
C) $6,750 
D) None of the above is the correct answer to this question 
A) $3,875 
B) $4,175 
C) $6,750 
D) None of the above is the correct answer to this question

Question 9

What is the difference between Collision and Other Than Collision coverages? Why does the PAP list certain perils in Other Than Collision when they can be caused by collision? What happens if the cause of loss is not listed?

Accepted Answer

Collision is hitting an object or the ov

Question 10

If an insured is using his/her own private passenger car under normal circumstances,in what situations can the insured lose legal liability coverage?

Accepted Answer

Under normal circumstances the insured w

Question 11

If your car is damaged in a collision that is your fault,the PAP says:

Accepted Answer

A) it is up to the insurer to have it fixed 
B) you must protect it from further damage 
C) all you have to do is notify the insurer and the insurer does the rest 
D) the insurer's obligation is always to replace the car 
A) it is up to the insurer to have it fixed 
B) you must protect it from further damage 
C) all you have to do is notify the insurer and the insurer does the rest 
D) the insurer's obligation is always to replace the car

Question 12

The PAP only covers losses that occur while the automobile is within the United States,Canada,or Mexico,or being transported between ports thereof.

Accepted Answer

A) True 
 B)False

Question 13

If Paul causes a car accident,and the car he hits is driven by an insured motorist,Paul's PAP will pay for the other driver's damages:

Accepted Answer

A) under coverage A, Liability 
B) under coverage C, Uninsured Motorist 
C) under both coverages A and C 
D) nothing since an uninsured motorist was injured 
A) under coverage A, Liability 
B) under coverage C, Uninsured Motorist 
C) under both coverages A and C 
D) nothing since an uninsured motorist was injured

Question 14

Explain the purpose of Uninsured Motorist coverage.

Accepted Answer

The purpose of Uninsured Motorist covera

Question 15

Subrogation in automobile insurance means that if an insured's negligence results in his insurer paying a liability claim to an injured third party,once the claim is paid the insurer can sue its negligent insured.

Accepted Answer

A) True 
 B)False

Question 16

When you have an auto accident that is your fault,your PAP's Liability coverage will pay for all of the following except:

Accepted Answer

A) Bodily injuries of passengers in other cars that you hit in the accident 
B) Bodily injuries of non family members who are passengers in your car at the time of the accident 
C) Bodily injuries of your spouse who is a passenger in your car at the time of the accident 
D) None of the above; in other words, ALL of the above are items your PAP's Liability coverage would pay for 
A) Bodily injuries of passengers in other cars that you hit in the accident 
B) Bodily injuries of non family members who are passengers in your car at the time of the accident 
C) Bodily injuries of your spouse who is a passenger in your car at the time of the accident 
D) None of the above; in other words, ALL of the above are items your PAP's Liability coverage would pay for

Question 17

Financial responsibility laws legally require every driver to purchase automobile insurance.

Accepted Answer

A) True 
 B)False

Question 18

Gerry has a PAP with Liability coverage limits of 25/50/10 and a $1,000 Medical Payments coverage limit.He collides with another car (he is at fault)and the following losses are incurred:
Body injury to the driver of the other car = $100,000.
Bodily injury to the passenger of the other car = $3,000.
Property damage to the other car = $11,000.
Bodily injury to Gerry's wife = $5,000.
How much will the PAP pay,in total,for this accident?

Accepted Answer

A) $119,000 
B) $60,000 
C) $43,000 
D) $39,000 
A) $119,000 
B) $60,000 
C) $43,000 
D) $39,000

Question 19

You collide with another vehicle and the accident is your fault.You may collect for damages to your vehicle,less the deductible,from your insurance company under Coverage D,COLLISION,if a premium for COLLISION has been paid.

Accepted Answer

A) True 
 B)False

Question 20

All of the following would be paid under the PAPs Other than Collision coverage except:

Accepted Answer

A) the car is sprayed with paint as it passes under a bridge being painted 
B) the driver of the car backs off a curb and damages the car's oil pan 
C) the windshield is broken by a "flying" rock 
D) while the insured is adjusting the carburetor gasoline spills over the engine and causes a fire 
A) the car is sprayed with paint as it passes under a bridge being painted 
B) the driver of the car backs off a curb and damages the car's oil pan 
C) the windshield is broken by a "flying" rock 
D) while the insured is adjusting the carburetor gasoline spills over the engine and causes a fire

Exam 11: the Personal Auto Policy

In the Personal Automobile Policy, "your covered auto" includes all of the following except:

A PAP is issued with both Collision and Other than Collision coverages.Two valuable cameras are stolen from the car. The cameras would be paid for by:

All of the following persons are covered under Larry's PAP except:

You are in an automobile accident with an uninsured motorist,and the accident is your fault. Your Uninsured Motorist limits are 10/20 and your medical bills are $22,000.You collect from your UM coverage:

The PAP's coverage territory is the USA,Puerto Rico,US Territories and Possessions,and countries bordering the USA.

The PAP coverage that pays the largest claims,and is possibly the most important coverage is:

Latisha runs over a deer with her car. The ACV of her vehicle is $7,250. To repair the damages will cost $4,375.What will the insurer likely pay Latisha for this claim,assuming that her Collision deductible is $500,and her Other Than Collision deductible is $200?

What is the difference between Collision and Other Than Collision coverages? Why does the PAP list certain perils in Other Than Collision when they can be caused by collision? What happens if the cause of loss is not listed?

If an insured is using his/her own private passenger car under normal circumstances,in what situations can the insured lose legal liability coverage?

If your car is damaged in a collision that is your fault,the PAP says:

The PAP only covers losses that occur while the automobile is within the United States,Canada,or Mexico,or being transported between ports thereof.

If Paul causes a car accident,and the car he hits is driven by an insured motorist,Paul's PAP will pay for the other driver's damages:

Explain the purpose of Uninsured Motorist coverage.

Subrogation in automobile insurance means that if an insured's negligence results in his insurer paying a liability claim to an injured third party,once the claim is paid the insurer can sue its negligent insured.

When you have an auto accident that is your fault,your PAP's Liability coverage will pay for all of the following except:

Financial responsibility laws legally require every driver to purchase automobile insurance.

You collide with another vehicle and the accident is your fault.You may collect for damages to your vehicle,less the deductible,from your insurance company under Coverage D,COLLISION,if a premium for COLLISION has been paid.

All of the following would be paid under the PAPs Other than Collision coverage except:

Fundamentals and Terminology

Defining the Insurable Event

Risk Management

Financial Services Companies

Insurance Occupations

the Insurance Market: the Economic Problem

Insurance Regulation

Insurance Contracts

Basic Property and Liability Insurance Contracts

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions And Options

Annuities

Medical Expense and Disability Insurance

Advanced Topics in Risk Management

Commercial Property Insurance

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Bonding,Crime Insurance and Reinsurance

Employee Benefits

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