Exam 12: The Personal Auto Policy

Gerry has a PAP with Liability coverage limits of 25/50/10 and a $1,000 Medical Payments coverage limit. He collides with another car (he is at fault) and the following losses are incurred: Bodily injury to the driver of the other car = $100,000. Bodily injury to the passenger of the other car = $3,000. Property damage to the other car = $11,000. Bodily injury to Gerry's wife = $5,000. How much will the PAP pay, in total, for this accident?

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?

The PAP's Other than Collision Coverage would pay for: I. Running off the road and into a lake II. Hitting a deer III. Hitting a chicken, losing control of your car as a result, and crashing into a ditch IV. Having a non-war-related missile land on top of your car V. Having your car stolen VI. Having your car vandalized by someone you broke up with

Property Damage Liability of the Personal Automobile Policy provides coverage to reimburse you if your automobile is damaged.

Financial responsibility laws legally require every driver to purchase automobile insurance.

If your car is damaged in a collision that is your fault, the PAP says:

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

Jackson has purchased Liability coverage limits of 100/200/50 on his PAP. He has an accident and finds himself liable for damages awarded in the following order: Bodily injury to A - $250,000 Bodily injury to B - $200,000 Bodily injury to C - $150,000 Property Damage to D - $40,000 Which of the following is true?

Uninsured Motorist coverage usually provides property damage coverage to the insured for damages to his auto caused by an insured motorist.

If you rent a car while on vacation, you have coverage for any collision damage to the rental car under your own PAP, assuming you have purchased such coverage on your owned automobiles.

Under the PAP Liability Coverage, the "insured" is:

Explain the purpose of Uninsured Motorist coverage.

Nurse Goodbody works for Dr. Bond. While driving to the hospital one day, Dr. Bond has an accident that is his fault. Nurse Goodbody, as a passenger of the car, is injured. Which of the following is true?

When you borrow someone's car and wreck it, you have the option of letting your automobile insurance pay on a primary basis for the accident.

To have your bodily injuries covered under your Uninsured Motorist Coverage, you must have been at fault in the auto accident that caused your bodily injuries.

Under which of the following circumstances would Sue's PAP pay something for the loss?

Dameion has a collision that is his fault. The ACV of his vehicle is $13,922. To repair the damages caused in the accident, it will cost $15,722. What will the insurer likely pay Dameion under his Collision coverage, assuming his deductible is $500?

A PAP may be canceled at any time for any reason if the insurance company no longer wants to insure you.

A tornado causes the garage to collapse on Mr. Woody's car, and the damage to the car is $5,000. Mr. Woody has a PAP with both Collision and Other than Collision coverages. A $200 deductible applies to the Collision coverage. There is a $0 deductible on Other than Collision coverage. How much is paid by the PAP for the tornado damage?

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?