4.7 Introduction to Personal Auto Policy FINAL EXAM (Master)

The personal auto policy may be endorsed to provide coverage for which of the following?

The __________ may be used to extend a PAP to cover autos owned jointly by a husband and wife who are living separately from one another.

Individuals who are licensed to drive but do not own a car may need a personal auto policy.

Insurance companies that will write only drivers with superior driving records are called:

The first factors that are reviewed when rating a PAP are the:

The rating factor for a __________ individual is lower than for a __________ person.

The SDIP is the:

Coverage on a PAP ceases for a spouse who no longer resides in the named insured’s household at the earliest of which one of the following?

The insurance company is required to defend claims and lawsuits filed against an insured:

The insurance company is required to defend a claim even when there is no possibility that it is covered by the personal auto policy.

“You” and “your” refer to:

The definition of insured on the PAP is important because:

The personal auto policy is meant to offer liability coverage for damages arising from the ownership or operation of an auto being used as a public or livery conveyance.

The reasonable belief exclusion on the PAP:

By virtue of an exception to the PAP’s care, custody, and control exclusion, liability coverage is provided for:

Vehicles that are designed mainly for off-road usage are covered under a PAP as long as they have fewer than four wheels.

The per person bodily injury limit shown in a PAP’s declarations is the most:

The medical payments insuring agreement does provide coverage for injuries received while occupying a travel trailer. However, this coverage is voided when:

The medical payments limit of liability is the most that will be paid:

Uninsured motorists coverage offers coverage for:

UMPD coverage is:

Jane Dawson is injured in an accident with an uninsured motorist. Her children may be able to collect for the loss of her income while she is recuperating because they are:

An accident involving a hit-and-run vehicle may not entitle an insured to collect from his Uninsured Motorists coverage.

With Uninsured Motorists coverage, arbitration may be used when the insured and insurer cannot agree on:

Vicki Smith purchased underinsured motorists coverage of $50,000. A driver who carried $15,000 of bodily injury liability coverage broadsided Vicki’s car, and she was injured. Vicki is able to collect $15,000 from the responsible party. Her underinsured

In addition to damage to the covered auto, Part D also covers:

While Bill’s wife is driving their car, he borrows his neighbor’s car and causes an at-fault accident. The neighbor carries liability insurance only, but Bill carries full coverage on his car. Will there be any insurance coverage for the damage to the neighbor’s car?

Patricia has a company car. She drives it for both business and pleasure. She also has her own car, insured for full coverage on a PAP. She has an at-fault accident in the company car while going to the store. Will her PAP pay for the damages?

Adam has a PAP with full coverage. After being involved in an accident, he must rent a car. The best rental price he can find is $30 per day. Adam does not get his car back from the shop until 45 days after the accident. How much, if any, will his PAP pay towards that expense?

Which one of the following represents devices that transmit or receive signals and are covered for physical damage under the PAP?

Jon is an alleged dealer of illegal drugs. His car is seized by the police and destroyed. Jon will be able to collect the actual cash value of the car because he was not convicted of a crime.

Assuming that a PAP includes physical damage coverage, what is necessary for that coverage to apply to a borrowed car that the named insured or family member is using?

Items such as murals, height-extending roofs, and special carpeting in a vehicle are referred to in Part D as:

Tim is an auto mechanic. He carries a PAP on his own car. His employer carries a garage liability policy. While test-driving a customer’s car, Tim wrecks the customer’s vehicle. Tim’s PAP will not pay for the customer’s car because Tim is using the car as part of his employment in an auto business.

Part D of the PAP limits the insurer’s payment to the lesser of:

The vehicle’s ACV or the amount necessary to repair or replace it with like kind and quality

Courts differ in their rulings on when a delay in notifying the insurance company of a claim enables the insurer to deny coverage. Some courts require that an insurance company be _____________ by a delay in order to deny coverage.

An insurance company may require that a doctor of its choice examine a claimant. The company also may question a person seeking coverage under oath.

The PAP requires that hit-and-run accidents be reported to the policy promptly. Which one of the following is one of the reasons for this requirement?

Sam Frye is involved in an accident that damages his auto, which is covered by collision insurance. Which one of the following duties must Sam comply with in order to trigger coverage?

The bankruptcy or insolvency of the insured:

Insurance companies often broaden coverage by revising and reissuing a policy form. When this happens, coverage is automatically broadened for in-force policies as long as no additional premium is required. This is called:

Which one of the following is not included in the PAP policy territory?

Lori Bates has an unendorsed PAP policy with a $100,000 limit of liability and also is covered by a BAP with a $1,000,000 limit of liability. ABC Insurance Company issues both policies. If both policies apply to the same accident or loss, what is the maximum limit that will be paid by ABC?

Since the introduction of the __________ in 1909, the automobile has become a staple of American life.

An individual’s driving record does not affect PAP rates.

Some states require that UM coverage be offered in an amount __________ the insured’s bodily injury liability coverage limit. These states usually require that insureds who purchase a lower amount of UM coverage sign off on the decision.

The maximum amount payable for loss to electronic equipment that reproduces, receives, or transmits audio, visual, or data signals and that is permanently installed in the auto in locations not used by the auto manufacturer for installation of such equipment is _________.

Which is not, part of the 4 termination provisions?

An employer-provided vehicle is an example of: