Review of the Personal Auto Policy FINAL EXAM (LA 33592)

Auto insurance is designed to do which of the following?

A(n)______________ is a condition or situation that presents the possibility of a loss.

In which type of technique of managing loss exposures does the individual assume the entire financial impact of a loss?

This concept states that when the number of similar and independent exposure units increases, the relative occurrence of predictions about future outcomes also increases.

Which of the following is NOT a type of legal wrong?

Which of the following is NOT an element to establish negligence?

Which of the following is an element of a valid contract?

This supports that the purpose of obtaining insurance is so the policyholder can be returned to a pre-loss condition.

This establishes that a parent can be held liable for damages caused by their minor child.

Many states require insured’s to have _______________ coverage which will pay damages caused by a driver that flees the scene of an accident.

Most no-fault plans do not cover ____________ since these claims are more easily determined by dollar amount, and there is usually non pain and suffering.

The _______________ introduced a new and simplified auto policy that is much more consumer friendly.

At what time does coverage being on the inception date of a Personal Automobile Policy?

Which of the following would be an example of “Occupying” a vehicle as defined in the Personal Automobile Policy?

An insured has how many days to notify the insurer if additional coverage is required for an automobile that will replace a covered automobile on the policy?

Who of the following is NOT defined as an insured under Part A – Liability of the Personal Automobile Policy?

In which of the following situations would coverage under Part B – Medical Payments Coverage of the PAP NOT apply?

If an insured does not agree on whether a person is entitled to receive damages, or disagrees on the amount of the damages, they can submit a written request for ____________ to the insurance company, as outlined in Part C – Uninsured Motorist Coverage of the PAP.

A payment made to an insured by the insurance company under Part D – Coverage for Damage to Your Automobile of the PAP will be reduced by _____________.

Under Part D – Coverage for Damage to your Automobile, if an insured is involved in a loss to a vehicle considered “Non-Owned”, what type of coverage would apply?

Which of the following could be paid for a loss under Part D – Coverage for Damage to Your Automobile in the PAP?

As a general provision of the Personal Automobile Policy, if an insured declares bankruptcy or becomes insolvent, the insurance company ________________ relieved of any and all obligations under the policy.

Bob has a Personal Automobile Policy and passes away. His wife Anne does not have a driver’s license. His adult daughter Emily lives out of the country. His Son Max is in high school and lives at home. Who would become the insured under Bob’s PAP?

Which endorsement would need to be added to a PAP to provide coverage for a golf cart?

When reviewing rates set by insurance companies, regulators require that the rates be: