Exam 22: Auto Insurance

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.

Patricia purchased a Personal Auto Policy (PAP).Her car was rear-ended by a driver who fled the scene.Patricia suffered whiplash,migraine headaches,and she was unable to work.Which of the following coverages will cover her lost work earnings?

All of the following are considered to be uninsured vehicles for purposes of the uninsured motorists coverage of the PAP EXCEPT

Larry has $25,000 of bodily injury liability coverage under his PAP.This limit is the minimum amount required by his state to be considered financially responsible.While on a vacation,Larry visited a neighboring state which has a minimum financial responsibility limit of $50,000 for bodily injury.Which of the following statements describes the situation for Larry while he was in the neighboring state?

A vehicle is considered a constructive total loss when

John occasionally borrows the car of his friend,Sophie.Sophie has a PAP with liability limits of 100/300/50.John also has a PAP,and his liability limits 250/500/50.John had an accident while using Sophie's car and was found to be legally liable for $300,000 in bodily injury liability.How much will be paid by each policy?

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?

Which of the following statements is (are)true with respect to the collision damage waiver on rented cars? I.It is inexpensive and is provided at no charge by most rental car companies. II.It waives the renter's liability for bodily injury liability arising out of use of the rented auto.

All of the following are covered persons under the medical payments coverage of the PAP EXCEPT

Which of the following persons is (are)insured under the uninsured motorists coverage of the PAP? I.A pedestrian struck by a covered auto if he or she has no insurance to pay medical expenses II.The spouse of a named insured who is killed by an uninsured motorist

Which statement concerning towing and labor coverage under the PAP is (are)true? I.If the insured purchases collision coverage,towing and labor coverage is provided automatically. II.Towing and labor coverage pays for repairs at a service station or garage.

All of the following losses are excluded under Part D (coverage for damage to your auto)of an unendorsed PAP EXCEPT

Which of the following persons is (are)covered for liability insurance under the PAP? I.A family member who drives a covered auto. II.A family member who occasionally drives a friend's auto.

Which of the following statements about the Miscellaneous-Type Vehicle Endorsement to the PAP is (are)true? I.It provides bodily injury liability coverage for any vehicle rented by the insured. II.To lower premiums when a motorcycle is insured,bodily injury to passengers can be excluded.

The 2005 PAP states that the insurer has no duty to provide coverage if the insured fails to comply with certain listed duties.In practice,however,the insurer is only relieved of its duty to provide coverage if

All of the following are covered as supplementary payments under the liability section of the PAP EXCEPT

Joyce was injured by an uninsured drunk driver while she was riding in a friend's car.Joyce and her friend each have a PAP with an uninsured motorists limit of $50,000.How much will be paid by each policy if it is determined that Joyce has $70,000 of bodily injuries?

In addition to providing coverage in the United States,its territories and possessions,and Puerto Rico,where else does the PAP provide coverage?

The Miscellaneous-Type Vehicle Endorsement to the PAP can be used to insure all of the following vehicles EXCEPT

Which of the following is considered to be a collision loss under Part D (coverage for damage to your auto)of the PAP?