Question 1

Death rates per registered vehicle have been rising since 1925.

Accepted Answer

A) True 
 B)False  False

Question 2

A pedestrian who owns a PAP and who is injured by an automobile can collect under his or her coverage for loss other than collision.

Accepted Answer

A) True 
 B)False  True

Question 3

The PAP may be canceled in the middle of the policy term on due notice by either party for any reason.

Accepted Answer

A) True 
 B)False  False

Question 4

The PAP covers property in the insured's care, custody, and control.

Accepted Answer

A) True 
 B)False

Question 5

Match the descriptions with their terms:
-Insurance that pays the insured when the auto policy's limits of the negligent third party are inadequate is entitled _________________.

Accepted Answer

A)  collision 
B)  financial responsibility laws 
C)  losses other than collision 
D)  medical payments 
E)  no-fault
F) nonstandard risk
G) personal automobile policy
H) underinsured motorists endorsement
I) uninsured motorist endorsement
J) uninsured motorist insurance
K) unsatisfied judgment fund 
A)  collision 
B)  financial responsibility laws 
C)  losses other than collision 
D)  medical payments 
E)  no-fault
F) nonstandard risk
G) personal automobile policy
H) underinsured motorists endorsement
I) uninsured motorist endorsement
J) uninsured motorist insurance
K) unsatisfied judgment fund

Question 6

Doe has the personal automobile policy with liability limits as follows: $25,000/$50,000 BI and $10,000 PD. Doe is held liable in an accident in which he must pay for bodily injuries as follows: A, $15,000, B, $5,000, and C, $30,000. His contract will reimburse him to the extent of

Accepted Answer

A)  $25,000, 
B)  $30,000, 
C)  $45,000, 
D)  $50,000, 
E)  none of these. 
A)  $25,000, 
B)  $30,000, 
C)  $45,000, 
D)  $50,000, 
E)  none of these.

Question 7

The PAP covers theft of personal articles left in an automobile.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following claims would not be paid under automobile loss-other-than-collision coverage?

Accepted Answer

A)  the car is sprayed with paint as it passes under a bridge being painted, 
B)  gasoline spills over the engine and causes a fire, 
C)  the windshield is broken by a flying rock, 
D)  the car rolls over a parking curb and damages the oil pan, 
E)  all are covered by loss other than collision. 
A)  the car is sprayed with paint as it passes under a bridge being painted, 
B)  gasoline spills over the engine and causes a fire, 
C)  the windshield is broken by a flying rock, 
D)  the car rolls over a parking curb and damages the oil pan, 
E)  all are covered by loss other than collision.

Question 9

Match the descriptions with their terms:
-The _________________ is used to insure private passenger cars, station wagons, jeeps, pickups, and farm trucks.

Accepted Answer

A)  collision 
B)  financial responsibility laws 
C)  losses other than collision 
D)  medical payments 
E)  no-fault
F) nonstandard risk
G) personal automobile policy
H) underinsured motorists endorsement
I) uninsured motorist endorsement
J) uninsured motorist insurance
K) unsatisfied judgment fund 
A)  collision 
B)  financial responsibility laws 
C)  losses other than collision 
D)  medical payments 
E)  no-fault
F) nonstandard risk
G) personal automobile policy
H) underinsured motorists endorsement
I) uninsured motorist endorsement
J) uninsured motorist insurance
K) unsatisfied judgment fund

Question 10

The subrogation provision of the PAP does not apply to the medical payments coverage.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following items is not a rating factor?

Accepted Answer

A)  age, 
B)  sex, 
C)  race. 
A)  age, 
B)  sex, 
C)  race.

Question 12

An example of a covered auto in the PAP is

Accepted Answer

A)  an owned trailer, 
B)  an owned taxi, 
C)  a van in which you deliver flowers to your customers. 
A)  an owned trailer, 
B)  an owned taxi, 
C)  a van in which you deliver flowers to your customers.

Question 13

An example of a family member as defined in the PAP is

Accepted Answer

A)  your mother living next door, 
B)  your foster child, 
C)  your father who came for a visit. 
A)  your mother living next door, 
B)  your foster child, 
C)  your father who came for a visit.

Question 14

If you have an accident with a truck owned by a corporation that self-insures, that vehicle is considered uninsured by the uninsured motorist coverage.

Accepted Answer

A) True 
 B)False

Question 15

CBs are excluded from coverage in the PAP.

Accepted Answer

A) True 
 B)False

Question 16

Match the descriptions with their terms:
-When a person is injured in an accident in your car, _______________ will pay that person's hospital bills whether or not you are negligent.

Accepted Answer

A)  collision 
B)  financial responsibility laws 
C)  losses other than collision 
D)  medical payments 
E)  no-fault
F) nonstandard risk
G) personal automobile policy
H) underinsured motorists endorsement
I) uninsured motorist endorsement
J) uninsured motorist insurance
K) unsatisfied judgment fund 
A)  collision 
B)  financial responsibility laws 
C)  losses other than collision 
D)  medical payments 
E)  no-fault
F) nonstandard risk
G) personal automobile policy
H) underinsured motorists endorsement
I) uninsured motorist endorsement
J) uninsured motorist insurance
K) unsatisfied judgment fund

Question 17

Match the descriptions with their terms:
-_________________ is considered to be the upset of your auto or its impact with another vehicle or object.

Accepted Answer

A)  collision 
B)  financial responsibility laws 
C)  losses other than collision 
D)  medical payments 
E)  no-fault
F) nonstandard risk
G) personal automobile policy
H) underinsured motorists endorsement
I) uninsured motorist endorsement
J) uninsured motorist insurance
K) unsatisfied judgment fund 
A)  collision 
B)  financial responsibility laws 
C)  losses other than collision 
D)  medical payments 
E)  no-fault
F) nonstandard risk
G) personal automobile policy
H) underinsured motorists endorsement
I) uninsured motorist endorsement
J) uninsured motorist insurance
K) unsatisfied judgment fund

Question 18

Match the descriptions with their terms:
-_________________ pays for the insured's bodily injury that results from an accident with another vehicle if the other driver is negligent or uninsured.

Accepted Answer

A)  collision 
B)  financial responsibility laws 
C)  losses other than collision 
D)  medical payments 
E)  no-fault
F) nonstandard risk
G) personal automobile policy
H) underinsured motorists endorsement
I) uninsured motorist endorsement
J) uninsured motorist insurance
K) unsatisfied judgment fund 
A)  collision 
B)  financial responsibility laws 
C)  losses other than collision 
D)  medical payments 
E)  no-fault
F) nonstandard risk
G) personal automobile policy
H) underinsured motorists endorsement
I) uninsured motorist endorsement
J) uninsured motorist insurance
K) unsatisfied judgment fund

Question 19

Match the descriptions with their terms:
-A/An _________________ is set up by a state to pay automobile accident settlements that cannot be collected by any other means.

Accepted Answer

A)  collision 
B)  financial responsibility laws 
C)  losses other than collision 
D)  medical payments 
E)  no-fault
F) nonstandard risk
G) personal automobile policy
H) underinsured motorists endorsement
I) uninsured motorist endorsement
J) uninsured motorist insurance
K) unsatisfied judgment fund 
A)  collision 
B)  financial responsibility laws 
C)  losses other than collision 
D)  medical payments 
E)  no-fault
F) nonstandard risk
G) personal automobile policy
H) underinsured motorists endorsement
I) uninsured motorist endorsement
J) uninsured motorist insurance
K) unsatisfied judgment fund

Question 20

A car damaged by a falling airplane part is an example of a loss covered by the collision portion of the PAP.

Accepted Answer

A) True 
 B)False

Exam 13: Risk Management for Auto Ownerspart I

Death rates per registered vehicle have been rising since 1925.

A pedestrian who owns a PAP and who is injured by an automobile can collect under his or her coverage for loss other than collision.

The PAP may be canceled in the middle of the policy term on due notice by either party for any reason.

The PAP covers property in the insured's care, custody, and control.

Match the descriptions with their terms: -Insurance that pays the insured when the auto policy's limits of the negligent third party are inadequate is entitled _________________.

Doe has the personal automobile policy with liability limits as follows: $25,000/$50,000 BI and $10,000 PD. Doe is held liable in an accident in which he must pay for bodily injuries as follows: A, $15,000, B, $5,000, and C, $30,000. His contract will reimburse him to the extent of

The PAP covers theft of personal articles left in an automobile.

Which of the following claims would not be paid under automobile loss-other-than-collision coverage?

Match the descriptions with their terms: -The _________________ is used to insure private passenger cars, station wagons, jeeps, pickups, and farm trucks.

The subrogation provision of the PAP does not apply to the medical payments coverage.

Which of the following items is not a rating factor?

An example of a covered auto in the PAP is

An example of a family member as defined in the PAP is

If you have an accident with a truck owned by a corporation that self-insures, that vehicle is considered uninsured by the uninsured motorist coverage.

CBs are excluded from coverage in the PAP.

Match the descriptions with their terms: -When a person is injured in an accident in your car, _______________ will pay that person's hospital bills whether or not you are negligent.

Match the descriptions with their terms: -_________________ is considered to be the upset of your auto or its impact with another vehicle or object.

Match the descriptions with their terms: -_________________ pays for the insured's bodily injury that results from an accident with another vehicle if the other driver is negligent or uninsured.

Match the descriptions with their terms: -A/An _________________ is set up by a state to pay automobile accident settlements that cannot be collected by any other means.

A car damaged by a falling airplane part is an example of a loss covered by the collision portion of the PAP.

Introduction to Risk

Risk Identification and Evaluation

Property and Liability Loss Exposures

Life, Health, and Loss of Income Exposures

Risk Management Techniques: Noninsurance Methods

Insurance As a Risk Management Technique: Principles

Insurance As a Risk Management Technique: Policy Provisions

Selecting and Implementing Risk Management Techniques

Risk Management and Commercial Propertypart I

Risk Management and Commercial Propertypart II

Risk Management and Commercial Liability Risk

Workers Compensation and Alternative Risk Financing

Risk Management for Auto Ownerspart II

Risk Management for Homeowners

Loss of Life

Loss of Health

Retirement Planning and Annuities

Employee Benefits: Life and Health Benefits

Employee Benefits: Retirement Plans

Financial and Estate Planning

Risk Management and the Insurance Industry

Functions and Organization of Insurers

Government Regulation of Risk Management and Insurance

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