Question 1

Rob purchased a Personal Auto Policy (PAP)with collision and other-than-collision coverage.Which of the following losses would be covered under his policy?

Accepted Answer

A) Rob wrecked his car while using it as a taxi cab. 
B) Thieves took Rob's radar detector from his car. 
C) A flash flood washed Rob's car off the road and damaged it. 
D) The new tires Rob had on the car were defective and wore out after 2 months. 
A) Rob wrecked his car while using it as a taxi cab. 
B) Thieves took Rob's radar detector from his car. 
C) A flash flood washed Rob's car off the road and damaged it. 
D) The new tires Rob had on the car were defective and wore out after 2 months.

Question 2

Which of the following statements about the medical payments coverage of the PAP is true?

Accepted Answer

A) The amount of the benefit typically is $100,000. 
B) Covered expenses must be incurred within 30 days of the accident. 
C) Covered expenses include the cost of funeral services. 
D) The benefit limit applies on a per-accident basis rather than on a per-person basis. 
A) The amount of the benefit typically is $100,000. 
B) Covered expenses must be incurred within 30 days of the accident. 
C) Covered expenses include the cost of funeral services. 
D) The benefit limit applies on a per-accident basis rather than on a per-person basis.

Question 3

Which of the following situations would be covered by the liability section of an unendorsed PAP if the insured is legally liable?

Accepted Answer

A) The insured injures a pedestrian while operating a friend's new motorcycle. 
B) The insured backs into and damages the garage door of his rented house. 
C) A friend's suitcase and laptop computer were damaged in an auto accident while the insured and the friend were vacationing together. 
D) The insured damages a parked car while driving a dump truck for his or her employer. 
A) The insured injures a pedestrian while operating a friend's new motorcycle. 
B) The insured backs into and damages the garage door of his rented house. 
C) A friend's suitcase and laptop computer were damaged in an auto accident while the insured and the friend were vacationing together. 
D) The insured damages a parked car while driving a dump truck for his or her employer.

Question 4

What is the purpose of the extended nonowned liability coverage endorsement to the PAP?

Accepted Answer

A) to provide liability coverage for an insured's employer when an insured uses his or her auto for business purposes 
B) to provide liability coverage for an insured who occasionally operates a nonowned auto 
C) to provide liability coverage for anyone who loans a covered auto to another driver 
D) to provide liability coverage for an insured who operates a nonowned auto on a regular basis 
A) to provide liability coverage for an insured's employer when an insured uses his or her auto for business purposes 
B) to provide liability coverage for an insured who occasionally operates a nonowned auto 
C) to provide liability coverage for anyone who loans a covered auto to another driver 
D) to provide liability coverage for an insured who operates a nonowned auto on a regular basis

Question 5

Ken purchased a PAP with liability limits of 100/300/50,medical payments coverage,and collision coverage.Ken fell asleep while driving late at night.He crossed the center line and hit a car approaching from the other direction.The following losses occurred.
-The driver of the other car suffered $30,000 in bodily injuries.
-Ken's car sustained $5,000 in damages.
-Ken incurred $5,000 in medical expenses.
-The car that Ken hit was a total loss.
Which of Ken's Personal Auto Policy (PAP)coverages will cover Ken's medical expenses?

Accepted Answer

A) bodily injury liability 
B) collision coverage 
C) medical payments coverage 
D) property damage liability 
A) bodily injury liability 
B) collision coverage 
C) medical payments coverage 
D) property damage liability

Question 6

Kelly was hit by a car while she was walking to the park.She incurred $750 in medical costs at a hospital emergency room.Kelly has coverage for this charge under which of her Personal Auto Policy (PAP)coverages?

Accepted Answer

A) bodily injury liability 
B) other-than collision 
C) medical payments 
D) collision 
A) bodily injury liability 
B) other-than collision 
C) medical payments 
D) collision

Question 7

All of the following are insured persons under the liability coverage of the PAP EXCEPT

Accepted Answer

A) a friend to whom the named insured loans a covered auto. 
B) the employer of the named insured for actions resulting from the named insured's use of a covered auto. 
C) the former spouse of the named insured who moved out of the home 2 years ago when the divorce was finalized. 
D) a relative of the named insured if a member of the same household. 
A) a friend to whom the named insured loans a covered auto. 
B) the employer of the named insured for actions resulting from the named insured's use of a covered auto. 
C) the former spouse of the named insured who moved out of the home 2 years ago when the divorce was finalized. 
D) a relative of the named insured if a member of the same household.

Question 8

All of the following statements about the termination provisions of the PAP are true EXCEPT

Accepted Answer

A) The insured can cancel the policy for any reason. 
B) The insurer can cancel a newly-written policy if it has been in force for fewer than 60 days. 
C) The insurer can cancel the policy after it has been in force for 60 days only if the insured has three or more traffic violations. 
D) The insurer can refuse to renew the policy at its annual anniversary date as long as proper notice is given prior to the end of the policy period. 
A) The insured can cancel the policy for any reason. 
B) The insurer can cancel a newly-written policy if it has been in force for fewer than 60 days. 
C) The insurer can cancel the policy after it has been in force for 60 days only if the insured has three or more traffic violations. 
D) The insurer can refuse to renew the policy at its annual anniversary date as long as proper notice is given prior to the end of the policy period.

Question 9

The insurance company's options for settling a collision loss to a covered auto under the PAP include which of the following?
I.Pay the loss in money.
II.Repair or replace the damaged auto.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II 
A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 10

Dan picked up his friend Rodney to drive to their softball game.Both Dan and Rodney have a Personal Auto Policy (PAP)with $5,000 of medical payments coverage.Dan hit a parked car,and Rodney was injured,incurring $9,000 of medical expenses.How will this claim be settled under the other insurance provision of the PAP?

Accepted Answer

A) Both insurers will pay $4,500. 
B) Dan's insurer will pay $5,000 and Rodney's insurer will pay $4,000. 
C) Dan's insurer will pay $4,000 and Rodney's insurer will pay $5,000. 
D) Dan's insurer will pay $3,000,Rodney's insurer will pay $3,000,and Rodney must pay $3,000 out of his own pocket. 
A) Both insurers will pay $4,500. 
B) Dan's insurer will pay $5,000 and Rodney's insurer will pay $4,000. 
C) Dan's insurer will pay $4,000 and Rodney's insurer will pay $5,000. 
D) Dan's insurer will pay $3,000,Rodney's insurer will pay $3,000,and Rodney must pay $3,000 out of his own pocket.

Question 11

The purpose of gap insurance is to

Accepted Answer

A) pay the difference between the bodily injury liability limit purchased and the actual amount of bodily injury liability if it exceeds the limit. 
B) pay the difference between the amount the insurer pays if a car is a total loss and the amount owed on a lease or car loan. 
C) pay the difference between the medical payments coverage limit and the actual medical expenses of injured family members or passengers in the insured auto. 
D) pay the difference between the uninsured motorists coverage limit and the actual amount of the medical expenses incurred by the insured. 
A) pay the difference between the bodily injury liability limit purchased and the actual amount of bodily injury liability if it exceeds the limit. 
B) pay the difference between the amount the insurer pays if a car is a total loss and the amount owed on a lease or car loan. 
C) pay the difference between the medical payments coverage limit and the actual medical expenses of injured family members or passengers in the insured auto. 
D) pay the difference between the uninsured motorists coverage limit and the actual amount of the medical expenses incurred by the insured.

Rob purchased a Personal Auto Policy (PAP)with collision and other-than-collision coverage.Which of the following losses would be covered under his policy?

Which of the following statements about the medical payments coverage of the PAP is true?

Which of the following situations would be covered by the liability section of an unendorsed PAP if the insured is legally liable?

What is the purpose of the extended nonowned liability coverage endorsement to the PAP?

Kelly was hit by a car while she was walking to the park.She incurred $750 in medical costs at a hospital emergency room.Kelly has coverage for this charge under which of her Personal Auto Policy (PAP)coverages?

All of the following are insured persons under the liability coverage of the PAP EXCEPT

All of the following statements about the termination provisions of the PAP are true EXCEPT

The insurance company's options for settling a collision loss to a covered auto under the PAP include which of the following? I.Pay the loss in money. II.Repair or replace the damaged auto.

The purpose of gap insurance is to

Risk and Its Treatment

Insurance and Risk

Introduction to Risk Management

Advanced Topics in Risk Management

Types of Insurers and Marketing Systems

Insurance Company Operations

Financial Operations of Insurers

Government Regulation of Insurance

Fundamental Legal Principles

Analysis of Insurance Contracts

Life Insurance

Life Insurance Contractual Provisions

Buying Life Insurance

Annuities and Individual Retirement Accounts

Health-Care Reform; Individual Health Insurance Coverages

Employee Benefits: Group Life and Health Insurance

Employee Benefits: Retirement Plans

Social Insurance

The Liability Risk

Homeowners Insurance,section I

Homeowners Insurance,section II

Auto Insurance and Society

Other Property and Liability Insurance Coverages

Commercial Property Insurance

Commercial Liability Insurance

Crime Insurance and Surety Bonds

Filters

Exam 22: Auto Insurance

Rob purchased a Personal Auto Policy (PAP)with collision and other-than-collision coverage.Which of the following losses would be covered under his policy?

Which of the following statements about the medical payments coverage of the PAP is true?

Which of the following situations would be covered by the liability section of an unendorsed PAP if the insured is legally liable?

What is the purpose of the extended nonowned liability coverage endorsement to the PAP?

Kelly was hit by a car while she was walking to the park.She incurred $750 in medical costs at a hospital emergency room.Kelly has coverage for this charge under which of her Personal Auto Policy (PAP)coverages?

All of the following are insured persons under the liability coverage of the PAP EXCEPT

All of the following statements about the termination provisions of the PAP are true EXCEPT

The insurance company's options for settling a collision loss to a covered auto under the PAP include which of the following? I.Pay the loss in money. II.Repair or replace the damaged auto.

The purpose of gap insurance is to

Risk and Its Treatment

Insurance and Risk

Introduction to Risk Management

Advanced Topics in Risk Management

Types of Insurers and Marketing Systems

Insurance Company Operations

Financial Operations of Insurers

Government Regulation of Insurance

Fundamental Legal Principles

Analysis of Insurance Contracts

Life Insurance

Life Insurance Contractual Provisions

Buying Life Insurance

Annuities and Individual Retirement Accounts

Health-Care Reform; Individual Health Insurance Coverages

Employee Benefits: Group Life and Health Insurance

Employee Benefits: Retirement Plans

Social Insurance

The Liability Risk

Homeowners Insurance,section I

Homeowners Insurance,section II

Auto Insurance and Society

Other Property and Liability Insurance Coverages

Commercial Property Insurance

Commercial Liability Insurance

Crime Insurance and Surety Bonds

Filters