Review of the Personal Auto Policy FINAL EXAM (TN 34063)

In many states a vehicle cannot be licensed until proof of ____________ is established.

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

Since most states require drivers to show Proof of Financial Responsibility in order to drive, having insurance serves as a _____________.

Since most insurers believe that one cannot transfer an intentional or negligent act to a third part, most auto policies do not cover which type of damage?

The theory of ________________ states that if each party is partly negligent, each party must bear its own share of the damage or injury.

Only one part to an insurance contract makes an enforceable promise, meaning that an insurance contract is a(n)_____________.

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

If a jurisdiction has this type of no-fault system, the victim of a serious loss such as death or disablement would be allowed to sue for the actual damages, as well as for any punitive damages allowed.

In a no-fault state, if an applicant for auto insurance has been rejected by two or more auto insurers, their application will be submitted to the ____________________.

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?

The cost to repair a vehicle has dramatically risen in recent years due to _____________.

Which of the following would NOT be an example of Property Damage 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?

Part A – Liability Coverage of the PAP would apply to all of the following EXCEPT:

In which of the following situations would Part B – Medical Payments Coverage of the Personal Automobile Policy apply?

Under Part B – Medical Payment Coverages of the Personal Automobile Policy, medical payment benefits are ____________ when an insured is injured while occupying a non-owned automobile.

Although it goes against a fundamental rule in automobile insurance, some states allow an option to ____________ benefits in conjunction with Uninsured Motorists Coverage, and this can be automatic unless waived by the insured.

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?

Under Part D – Coverage for Damage to Your Automobile of the Personal Automobile Policy, the insurance company reserves the right to ____________ the damaged property before it is disposed of or repaired.

The general provision of the PAP that outlines the insurance company’s right to recover some or all of the amount they pay out on a claim from the responsible party is often referred to as what?

In which case would a General Endorsement be added to a Personal Automobile Policy?

This type of Loss Exposure consists of buildings, equipment, automobiles, or merchandise.

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

If allowed by state regulation, an automobile insurance company will take data from an applicant’s ______________ to create a proprietary score in order to determine the applicant’s risk.