Exam 20: Auto Insurance

Dennis was involved in an accident.He believes the damage to his auto is $7,000.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?

Which of the following statements concerning coverage for a newly-acquired auto under the Personal Auto Policy? I.The insured must notify the insurer within 14 days after becoming the owner for the collision coverage to continue to be in force. II.There is no notification requirement for the liability coverage to remain in force until the end of the policy period.

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

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 is a covered person under the medical payments coverage of the PAP?

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 for injuries suffered by one person.How much will be paid by each policy?

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

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

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 other driver's medical expenses?

Jenny purchased a Personal Auto Policy (PAP)that included property damage liability,collision coverage,medical payments coverage,and other-than-collision coverage.Jenny had too much alcohol to drink at a graduation party.While driving home from the party,Jenny ran off the road and hit a tree.Police responded to the accident,and Jenny was arrested for driving under the influence of alcohol.Which of the following statements is true regarding the damage to Jenny's car?

Which of the following statements about the liability limits of the PAP is (are)true? I.The policy can be written with split limits of liability. II.Prejudgment interest is considered part of the damage award and is subject to the policy limit of liability.

The Personal Auto Policy 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 insured persons under the liability coverage of the PAP EXCEPT

Which of the following statements is true about uninsured motorists coverage under the Personal Auto Policy?

In which of the following situations would medical payments be paid under an unendorsed PAP?

The purpose of the Miscellaneous-Type Vehicle Endorsement to the PAP is to

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 statement concerning towing and labor coverage under the PAP is (are)true? I.There's no coverage for towing if the auto breaks down-towing is only covered if the auto needs to be towed after a collision has occurred. II.Towing and labor coverage pays for repairs at a service station or garage.

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.

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