Question 1

Compulsory Liability Insurance laws are designed to

Accepted Answer

A) reduce automobile insurance rates 
B) decrease the number of people who carry automobile insurance 
C) reduce the number of automobile accidents 
D) force individuals to purchase auto liability insurance 
A) reduce automobile insurance rates 
B) decrease the number of people who carry automobile insurance 
C) reduce the number of automobile accidents 
D) force individuals to purchase auto liability insurance

Question 2

Annette lives in Texas,and has a PAP with the minimum limits of liability required by law in this state,which are 20/40/15. She drives to Alaska,where the minimum limits of liability are 50/100/25. While in Alaska,she cause an accident. What is the most that her PAP will pay for the damages she caused others to suffer?

Accepted Answer

A) 20/40/15 
B) 15/30/10 
C) 50/100/25 
D) 70/140/40 
A) 20/40/15 
B) 15/30/10 
C) 50/100/25 
D) 70/140/40

Question 3

As a purchaser of Uninsured Motorist coverage,you hope that your state will follow the no-contact rule in deciding which claims are payable by the coverage.

Accepted Answer

A) True 
 B)False

Question 4

Ron's PAP has a $500 deductible for Collision and a $0 deductible for Other Than Collision. Ron collides with a wild deer,causing $6,000 of damage to his car. He can recover from the insurer:

Accepted Answer

A) $6,000 
B) $5,500 
C) $6,500 
D) $0 
A) $6,000 
B) $5,500 
C) $6,500 
D) $0

Question 5

All of the following would be paid under the PAP=s Other than Collision coverage except:

Accepted Answer

A) the car skids out of control due to ice on the road, and hits a tree 
B) the driver of the car hits a bunny rabbit, loses control of the car, and runs into a ditch 
C) the windshield gets broken, and there is no known outside cause for the damage 
D) the car is damaged by a fire the insured negligently started while shooting off fireworks on 4th of July 
A) the car skids out of control due to ice on the road, and hits a tree 
B) the driver of the car hits a bunny rabbit, loses control of the car, and runs into a ditch 
C) the windshield gets broken, and there is no known outside cause for the damage 
D) the car is damaged by a fire the insured negligently started while shooting off fireworks on 4th of July

Question 6

Meghan has a PAP on 3 cars,and,she owns a fourth car on which no coverage has been purchased. Which of the following persons are covered by Meghan's PAP assuming they are driving the uninsured car?

Accepted Answer

A) Meghan, plus any other family member residing in the household 
B) Any family member that resides in the household, but NOT Meghan 
C) Only Meghan 
D) none of the above would be covered 
A) Meghan, plus any other family member residing in the household 
B) Any family member that resides in the household, but NOT Meghan 
C) Only Meghan 
D) none of the above would be covered

Question 7

Mandy's car is stolen and she files a claim with her PAP insurer. Which of the following items will not be paid for by her Other than Collision coverage?

Accepted Answer

A) the actual cash value of the car 
B) the car's factory-installed GPS navigational system, worth $999 
C) her cell phone that had a built-in GPS navigational system 
D) none of the above; all these items would be covered by her policy 
A) the actual cash value of the car 
B) the car's factory-installed GPS navigational system, worth $999 
C) her cell phone that had a built-in GPS navigational system 
D) none of the above; all these items would be covered by her policy

Question 8

Celeste has Liability coverage limits on her PAP of 100/200/50. She has an accident and finds herself liable for damages awarded in the following order:
Bodily injury to A ? $250,000
Bodily injury to B ? $30,000
Bodily injury to C ? $150,000
Property Damage to D ? $48,000
Which of the following is true?

Accepted Answer

A) Her insurer will pay $150,000 to C 
B) Her insurer will pay $250,000 to A 
C) Her insurer will pay $30,000 to B 
D) Both a and c are true 
A) Her insurer will pay $150,000 to C 
B) Her insurer will pay $250,000 to A 
C) Her insurer will pay $30,000 to B 
D) Both a and c are true

Question 9

Claims paid under the PAP's "COLLISION Coverage" are usually considered to be the insured's fault.

Accepted Answer

A) True 
 B)False

Question 10

Your PAP's Medical Payments coverage will pay for your bodily injuries if you get hit by a car as a pedestrian.

Accepted Answer

A) True 
 B)False

Question 11

Mindy is a member of the Zeta Omega Sorority. While driving to a local food bank to deliver donations from the sorority members,she causes an accident. She collides with a large carrot truck. The truck driver subsequently sues Mindy and her sorority for her negligent driving.Which of the following is a true statement?

Accepted Answer

A) Mindy's PAP Liability coverage will cover her, but not the sorority 
B) Mindy's PAP Liability coverage will cover the driver of the carrot truck, but not her 
C) Mindy's PAP Liability coverage will cover both Mindy and the sorority 
D) None of the above. 
A) Mindy's PAP Liability coverage will cover her, but not the sorority 
B) Mindy's PAP Liability coverage will cover the driver of the carrot truck, but not her 
C) Mindy's PAP Liability coverage will cover both Mindy and the sorority 
D) None of the above.

Question 12

PAP coverage A,which includes Property Damage Liability,provides coverage to reimburse you if your automobile is damaged.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following claims would NOT be covered by the Medical Payments coverage in the PAP?

Accepted Answer

A) the insured is injured because of an accident while driving his motorcycle 
B) the insured is struck by a house trailer which had become unhitched from the towing vehicle 
C) the insured is intentionally run over by his wife or girlfriend 
D) the insured is struck as a pedestrian when the driver of a car loses control 
A) the insured is injured because of an accident while driving his motorcycle 
B) the insured is struck by a house trailer which had become unhitched from the towing vehicle 
C) the insured is intentionally run over by his wife or girlfriend 
D) the insured is struck as a pedestrian when the driver of a car loses control

Question 14

You drink 19 beers to celebrate the end of your risk management and insurance class,then have an accident while driving home from the bar. The police charge you with drunk driving,and with hitting another automobile from behind. What will your automobile insurer do when you file a claim for the damage to your car,and,what will it do when the injured people in the other car file claims to have their bodily injuries paid for?

Accepted Answer

A) Nothing. The insurer does not have to pay any of these claims 
B) The insurer will pay all the claims 
C) The insurer will pay the liability claims, but not the damages to your car, because of the fact that you were drunk 
D) The insurer will say, "Who are you Nobody here remembers selling you a policy." 
A) Nothing. The insurer does not have to pay any of these claims 
B) The insurer will pay all the claims 
C) The insurer will pay the liability claims, but not the damages to your car, because of the fact that you were drunk 
D) The insurer will say, "Who are you Nobody here remembers selling you a policy."

Question 15

Underinsured Motorist coverage

Accepted Answer

A) is the same as Uninsured Motorist coverage 
B) potentially pays the difference between the negligent driver's liability coverage amount and the injured party's UM limits 
C) pays for property damage you cause when your victims have no coverage 
D) pays for an insured's negligence when insufficient liability limits exist 
A) is the same as Uninsured Motorist coverage 
B) potentially pays the difference between the negligent driver's liability coverage amount and the injured party's UM limits 
C) pays for property damage you cause when your victims have no coverage 
D) pays for an insured's negligence when insufficient liability limits exist

Question 16

Which of the following would not be paid for by the PAPs Other than Collision coverage?

Accepted Answer

A) the insured hits a deer and damages his car 
B) the car is sprayed with paint as it passes by a road construction site 
C) the driver of the car hits a bird and breaks the windshield 
D) a crate falls off the back of a truck and lands on the hood of the insured's car 
A) the insured hits a deer and damages his car 
B) the car is sprayed with paint as it passes by a road construction site 
C) the driver of the car hits a bird and breaks the windshield 
D) a crate falls off the back of a truck and lands on the hood of the insured's car

Question 17

Barney challenges Fred to a drag race across the mall parking lot. During the race,Barney loses control of the car and collides with another vehicle,causing serious injuries to the other driver. Which of the following is a true statement regarding the PAPs treatment of this claim?

Accepted Answer

A) The PAP will not cover this because it occurred on private property 
B) The PAP will not cover this because it occurred while he was racing 
C) The PAP will cover this because it did not occur inside a racing facility 
D) The PAP will cover this because it does not in any way exclude coverage for racing 
A) The PAP will not cover this because it occurred on private property 
B) The PAP will not cover this because it occurred while he was racing 
C) The PAP will cover this because it did not occur inside a racing facility 
D) The PAP will cover this because it does not in any way exclude coverage for racing

Question 18

Does the PAP provide any loss of use (indirect coverage)in the contract? What is it and how does it work (if any)?

Accepted Answer

The PAP provides loss of use c

Question 19

Which of the following coverages is provided by the PAP?

Accepted Answer

A) rental car reimbursement coverage for any car rental, regardless of why the car is needed 
B) liability insurance 
C) medical expense for disease 
D) personal property coverage 
A) rental car reimbursement coverage for any car rental, regardless of why the car is needed 
B) liability insurance 
C) medical expense for disease 
D) personal property coverage

Question 20

Which of the following is true?

Accepted Answer

A) Suing an uninsured motorist for damages they cause you to suffer is not a promising source of recovery 
B) If you are struck by an uninsured motorist and want your PAPs Uninsured Motorist coverage to pay for your bodily injuries, you must convince your insurer that the Uninsured Motorist was at-fault in the incident. 
C) If you cannot clearly establish that an uninsured motorist was at fault in the accident, you may have to enter the arbitration process to get your insurer to pay for your damages under the PAPs Uninsured Motorist coverage. 
D) All of the above 
A) Suing an uninsured motorist for damages they cause you to suffer is not a promising source of recovery 
B) If you are struck by an uninsured motorist and want your PAPs Uninsured Motorist coverage to pay for your bodily injuries, you must convince your insurer that the Uninsured Motorist was at-fault in the incident. 
C) If you cannot clearly establish that an uninsured motorist was at fault in the accident, you may have to enter the arbitration process to get your insurer to pay for your damages under the PAPs Uninsured Motorist coverage. 
D) All of the above

Compulsory Liability Insurance laws are designed to

As a purchaser of Uninsured Motorist coverage,you hope that your state will follow the no-contact rule in deciding which claims are payable by the coverage.

Ron's PAP has a $500 deductible for Collision and a $0 deductible for Other Than Collision. Ron collides with a wild deer,causing $6,000 of damage to his car. He can recover from the insurer:

All of the following would be paid under the PAP=s Other than Collision coverage except:

Meghan has a PAP on 3 cars,and,she owns a fourth car on which no coverage has been purchased. Which of the following persons are covered by Meghan's PAP assuming they are driving the uninsured car?

Mandy's car is stolen and she files a claim with her PAP insurer. Which of the following items will not be paid for by her Other than Collision coverage?

Claims paid under the PAP's "COLLISION Coverage" are usually considered to be the insured's fault.

Your PAP's Medical Payments coverage will pay for your bodily injuries if you get hit by a car as a pedestrian.

PAP coverage A,which includes Property Damage Liability,provides coverage to reimburse you if your automobile is damaged.

Which of the following claims would NOT be covered by the Medical Payments coverage in the PAP?

Underinsured Motorist coverage

Which of the following would not be paid for by the PAPs Other than Collision coverage?

Barney challenges Fred to a drag race across the mall parking lot. During the race,Barney loses control of the car and collides with another vehicle,causing serious injuries to the other driver. Which of the following is a true statement regarding the PAPs treatment of this claim?

Does the PAP provide any loss of use (indirect coverage)in the contract? What is it and how does it work (if any)?

Which of the following coverages is provided by the PAP?

Which of the following is true?

Fundamentals and Terminology

Defining the Insurable Event

Risk Management

Financial Services Companies

Insurance Occupations

the Insurance Market: the Economic Problem

Insurance Regulation

Insurance Contracts

Basic Property and Liability Insurance Contracts

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions And Options

Annuities

Medical Expense and Disability Insurance

Advanced Topics in Risk Management

Commercial Property Insurance

Commercial Liability Insurance

Bonding,Crime Insurance and Reinsurance

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Filters

Exam 11: the Personal Auto Policy

Compulsory Liability Insurance laws are designed to

As a purchaser of Uninsured Motorist coverage,you hope that your state will follow the no-contact rule in deciding which claims are payable by the coverage.

Ron's PAP has a $500 deductible for Collision and a $0 deductible for Other Than Collision. Ron collides with a wild deer,causing $6,000 of damage to his car. He can recover from the insurer:

All of the following would be paid under the PAP=s Other than Collision coverage except:

Meghan has a PAP on 3 cars,and,she owns a fourth car on which no coverage has been purchased. Which of the following persons are covered by Meghan's PAP assuming they are driving the uninsured car?

Mandy's car is stolen and she files a claim with her PAP insurer. Which of the following items will not be paid for by her Other than Collision coverage?

Claims paid under the PAP's "COLLISION Coverage" are usually considered to be the insured's fault.

Your PAP's Medical Payments coverage will pay for your bodily injuries if you get hit by a car as a pedestrian.

PAP coverage A,which includes Property Damage Liability,provides coverage to reimburse you if your automobile is damaged.

Which of the following claims would NOT be covered by the Medical Payments coverage in the PAP?

Underinsured Motorist coverage

Which of the following would not be paid for by the PAPs Other than Collision coverage?

Barney challenges Fred to a drag race across the mall parking lot. During the race,Barney loses control of the car and collides with another vehicle,causing serious injuries to the other driver. Which of the following is a true statement regarding the PAPs treatment of this claim?

Does the PAP provide any loss of use (indirect coverage)in the contract? What is it and how does it work (if any)?

Which of the following coverages is provided by the PAP?

Which of the following is true?

Fundamentals and Terminology

Defining the Insurable Event

Risk Management

Financial Services Companies

Insurance Occupations

the Insurance Market: the Economic Problem

Insurance Regulation

Insurance Contracts

Basic Property and Liability Insurance Contracts

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions And Options

Annuities

Medical Expense and Disability Insurance

Advanced Topics in Risk Management

Commercial Property Insurance

Commercial Liability Insurance

Bonding,Crime Insurance and Reinsurance

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Filters