Question 1

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

Accepted Answer

A) vandals damaged a portable cell phone kept in the car. 
B) theft of a compact disc player which was permanently installed in the auto. 
C) damage caused to a car's engine because the named insured never changed the oil. 
D) destruction of a radar detector which overheated and caught on fire. 
A) vandals damaged a portable cell phone kept in the car. 
B) theft of a compact disc player which was permanently installed in the auto. 
C) damage caused to a car's engine because the named insured never changed the oil. 
D) destruction of a radar detector which overheated and caught on fire.

Question 2

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

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 3

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.

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 4

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?

Accepted Answer

A) Larry's policy was suspended while he was in the neighboring state. 
B) Larry had only $25,000 of liability coverage. 
C) Larry's policy automatically provided $50,000 of liability coverage. 
D) Larry's policy automatically provided $100,000 of liability coverage. 
A) Larry's policy was suspended while he was in the neighboring state. 
B) Larry had only $25,000 of liability coverage. 
C) Larry's policy automatically provided $50,000 of liability coverage. 
D) Larry's policy automatically provided $100,000 of liability coverage.

Question 5

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

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 6

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 7

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 8

Part D of the Personal Auto Policy pays for temporary transportation expenses incurred by the insured because of loss to a covered auto.The coverage provided is

Accepted Answer

A) up to $500. 
B) unlimited. 
C) up to the actual cash value of the covered auto. 
D) up to $30 per day to a maximum of $900. 
A) up to $500. 
B) unlimited. 
C) up to the actual cash value of the covered auto. 
D) up to $30 per day to a maximum of $900.

Question 9

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.It can be added to PAP to insurance motorcycles and motor scooters.

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

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 11

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

Accepted Answer

A) the cost of an appeal bond in a lawsuit stemming from an auto accident. 
B) the cost of a bail bond for a traffic violation when no accident is involved. 
C) interest which accrues on a liability judgment covered by the policy. 
D) reasonable expenses incurred by the insured to testify at a trial involving a lawsuit covered by the policy. 
A) the cost of an appeal bond in a lawsuit stemming from an auto accident. 
B) the cost of a bail bond for a traffic violation when no accident is involved. 
C) interest which accrues on a liability judgment covered by the policy. 
D) reasonable expenses incurred by the insured to testify at a trial involving a lawsuit covered by the policy.

Question 12

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?

Accepted Answer

A) Each policy will pay $35,000. 
B) Joyce's policy will pay $50,000,and the friend's policy will pay nothing. 
C) Joyce's policy will pay $50,000,and the friend's policy will pay $20,000. 
D) The friend's policy will pay $50,000,and Joyce's policy will pay $20,000. 
A) Each policy will pay $35,000. 
B) Joyce's policy will pay $50,000,and the friend's policy will pay nothing. 
C) Joyce's policy will pay $50,000,and the friend's policy will pay $20,000. 
D) The friend's policy will pay $50,000,and Joyce's policy will pay $20,000.

Question 13

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

Accepted Answer

A) gap coverage. 
B) betterment. 
C) diminution. 
D) subrogation. 
A) gap coverage. 
B) betterment. 
C) diminution. 
D) subrogation.

Question 14

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?

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 15

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

Accepted Answer

A) a nonowned van which is driven by the insured on a regular basis. 
B) a trailer owned by the named insured. 
C) a borrowed auto used by the insured as a substitute for a stolen covered auto. 
D) a newly acquired auto which replaces a vehicle previously described in the policy. 
A) a nonowned van which is driven by the insured on a regular basis. 
B) a trailer owned by the named insured. 
C) a borrowed auto used by the insured as a substitute for a stolen covered auto. 
D) a newly acquired auto which replaces a vehicle previously described in the policy.

Question 16

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?

Accepted Answer

A) $90,000 
B) $100,000 
C) $115,000 
D) $125,000 
A) $90,000 
B) $100,000 
C) $115,000 
D) $125,000

Question 17

A vehicle is considered a constructive total loss when

Accepted Answer

A) it cannot be repaired. 
B) the repair cost exceeds the actual cash value. 
C) it can be repaired,but the insured prefers a cash settlement. 
D) it can be repaired,but the insurer prefers a cash settlement. 
A) it cannot be repaired. 
B) the repair cost exceeds the actual cash value. 
C) it can be repaired,but the insured prefers a cash settlement. 
D) it can be repaired,but the insurer prefers a cash settlement.

Question 18

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.

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

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)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 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.

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

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?

Part D of the Personal Auto Policy pays for temporary transportation expenses incurred by the insured because of loss to a covered auto.The coverage provided is

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.It can be added to PAP to insurance motorcycles and motor scooters.

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?

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

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

A vehicle is considered a constructive total loss when

Risk and Its Treatment

Insurance and Risk

Introduction to Risk Management

Enterprise 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 and 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

Auto Insurance Continued

Homeowners Insurance,section I

Homeowners Insurance,section II

Other Property and Liability Insurance Coverages

Commercial Property Insurance

Commercial Liability Insurance

Crime Insurance and Surety Bonds

Filters

Exam 20: Auto Insurance

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)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 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.

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

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?

Part D of the Personal Auto Policy pays for temporary transportation expenses incurred by the insured because of loss to a covered auto.The coverage provided is

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.It can be added to PAP to insurance motorcycles and motor scooters.

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?

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

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

A vehicle is considered a constructive total loss when

Risk and Its Treatment

Insurance and Risk

Introduction to Risk Management

Enterprise 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 and 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

Auto Insurance Continued

Homeowners Insurance,section I

Homeowners Insurance,section II

Other Property and Liability Insurance Coverages

Commercial Property Insurance

Commercial Liability Insurance

Crime Insurance and Surety Bonds

Filters