Exam 12: The Personal Auto Policy

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?

Chuck has an accident in which he is at fault. His liability limits on his PAP are 100/200/50. Five people besides Chuck are injured in the auto accident. Assuming that the following claims are paid in the order in which they are listed, how much will Chuck's insurer pay, in total, for all the bodily injuries? Joe = $75,000 Mama = $125,000 Fred = $2,500 Granny = $2,500 Bo = $5,000

Underinsured Motorist coverage:

You collide with another vehicle and the accident is your fault. You may collect for damages to your vehicle, less the deductible, from your insurance company under Coverage D, Collision, if a premium for Collision has been paid.

Your vehicle is damaged by another vehicle and the accident is the fault of the other driver. You may collect for damages to your vehicle, less the deductible, from your insurance company under Coverage D, Collision, if a premium for Collision has been paid.

Which one of the following is false concerning the PAP?

You are in an automobile accident with an uninsured motorist, and the accident is your fault. Your Uninsured Motorist limits are 10/20 and your medical bills are $22,000.You collect from your UM coverage:

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?

Compulsory Liability Insurance laws are designed to:

Bob loans his car to Norm, and Norm wrecks the car. Both Bob and Norm have PAP's on their owned vehicles, and both men have purchased all four major coverages (A, B, C and D) on their automobiles. Whose policy will pay for this loss on a PRIMARY basis?

Which of the following coverages is provided by the PAP?

If Paul causes a car accident, and the car he hits is driven by an insured motorist, Paul's PAP will pay for the other driver's damages:

All of the following persons are covered under Larry's PAP except:

Latisha runs over a deer with her car. The ACV of her vehicle is $7,250. To repair the damages will cost $4,375. What will the insurer likely pay Latisha for this claim, assuming that her Collision deductible is $500, and her Other than Collision deductible is $200?

Uninsured Motorist coverage:

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

The PAP only covers losses that occur while the automobile is within the United States, Canada, or Mexico, or being transported between ports thereof.

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

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:

The "defense" provision of the automobile insurance contract says the insurer: