Exam 22: Auto Insurance

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 the damage to Ken's car?

Which of the following statements about the payment of defense costs by the PAP is (are)true? I.They are paid in addition to the policy limits. II.They are payable even after the limit of liability is exhausted.

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 the damage to the car that Ken hit?

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

A car damaged in an auto accident may have reduced market or resale value after it is repaired.Some insureds have sought to recover this reduction in market or resale value.This loss in value is called:

Tony has a PAP which provides medical payments coverage.Under which of the following circumstances would the injured person be eligible for benefits under Tony's policy? I.A friend in the car is injured while Tony is driving a covered auto. II.A passenger on a motorcycle driven by Tony is injured when Tony hit another vehicle.

Duties of an insured after a collision loss covered under the PAP include which of the following? I.Take reasonable steps to protect the vehicle from further damage. II.Admit fault if the insured believes he or she caused the collision.

Dennis was involved in an accident.He believes the damage to his auto is $6,000.His insurer believes the damage is only $3,500.Which PAP provision is designed to handle disputes between the insurer and the insured over the amount of the loss?

All of the following are exclusions under the medical payments coverage of the PAP EXCEPT

If the value of a vehicle is increased after repairs,such as repainting an entire auto when only one fender or door is damaged,the insurer will not pay for the increase in value.Another name for the increase in value is

Which of the following situations would be covered under the liability section of the PAP? I.A mechanic is sued by a pedestrian who is injured when the mechanic has an accident while road testing the insured's auto. II.The daughter of the named insured is sued after she has an accident when a new friend she just met at a campus hangout lets her drive his car.

Which of the following statements about the uninsured motorists coverage of the PAP is true?

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

All of the following are covered autos under the liability section of the PAP EXCEPT

Rob purchased a Personal Auto Policy (PAP)with collision and other-than-collision coverage.All of the following losses are excluded under this physical damage coverage EXCEPT

Sarah purchased a Personal Auto Policy with liability limits of 50/100/25.Sarah ran a stop sign and hit a van.The van sustained $15,000 in damages.The following bodily injuries were suffered by passengers in the van: Passenger #1,$15,000;Passenger #2,$60,000;and Passenger #3,$10,000.Sarah sustained $5,000 in medical expenses,and Sarah's car sustained $10,000 in damages.How much will Sarah's insurer pay under Part A: Liability Coverage?

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

Angie was injured when her car was struck by a driver who ran a red light.The other driver carried the minimum liability coverage necessary to be considered financially responsible.Angie's injuries were $15,000 above the minimum bodily injury limit.There is a coverage that can be added to the PAP that applies when a negligent driver carries the minimum liability insurance required by the state,but is less than the insured's actual damages for bodily injury.This coverage is called

All of the following statements about Part D (coverage for damage to your auto)of the PAP are true EXCEPT

The purpose of the collision damage waiver when renting an auto is to