Question 1

Which of the following is true regarding your PAP contract?

Accepted Answer

A)  Your personal property is covered while in your automobile. 
B)  Your Medical Payments will pay for your friend's injuries suffered while s/he is occupying your car. 
C)  If you drive a car that you do not own, you will have no coverage for anything. 
D)  All rental cars must be declared to be insured in order to have coverage on them. 
A)  Your personal property is covered while in your automobile. 
B)  Your Medical Payments will pay for your friend's injuries suffered while s/he is occupying your car. 
C)  If you drive a car that you do not own, you will have no coverage for anything. 
D)  All rental cars must be declared to be insured in order to have coverage on them.

Question 2

You drink 19 beers to celebrate the end of your risk management and insurance class, and 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 3

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 PAP's 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 PAP's 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 PAP's 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 PAP's Uninsured Motorist coverage. 
D)  All of the above

Question 4

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 5

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

Which of the following is true regarding your PAP contract?

Which of the following is true?

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

Introduction to Enterprise Risk Management and Insurance

Risk Identification

Risk Assessment and Pooling

Risk-Handling Techniques: Loss Control, Risk Transfer, and Loss Financing

Risk-Handling Techniques: Diversification and Hedging

Fundamentals of Insurance

Insurable Perils and Insuring Organizations

Insurance Functions

Insurance Markets: Economics and Issues

Insurance Regulation

Insurance Contracts

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions and Options

Annuities

Health Insurance and Disability Income

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Commercial Property Insurance

Commercial Liability Insurance

Filters

Exam 12: The Personal Auto Policy

Which of the following is true regarding your PAP contract?

Which of the following is true?

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

Introduction to Enterprise Risk Management and Insurance

Risk Identification

Risk Assessment and Pooling

Risk-Handling Techniques: Loss Control, Risk Transfer, and Loss Financing

Risk-Handling Techniques: Diversification and Hedging

Fundamentals of Insurance

Insurable Perils and Insuring Organizations

Insurance Functions

Insurance Markets: Economics and Issues

Insurance Regulation

Insurance Contracts

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions and Options

Annuities

Health Insurance and Disability Income

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Commercial Property Insurance

Commercial Liability Insurance

Filters