A private passenger auto includes a leased vehicle as long as the lease contract is continuous for how many months duration?
a. 3
b. 6
c. 9
d.
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b. 6
2) A ____________vehicle is a covered vehicle when Your Covered Auto is being repaired due to a covered loss.
a. Substitute
b. Replacement
c. Temporary substitute
d. Conditional
c. Temporary substitute
Under Part D, Within how many days must an insured report the purchase of a new vehicle that is replacing an existing vehicle covered by collision coverage?
a. 4
b. 5
c. 14
d. 15
c. 14
Each of the following is a Part A - Liability Coverage Supplementary payment, except:
a. Payment for all defense costs
b. $200 a day for loss of earnings due to an insurer request to assist in the trial
c. $250 for the cost of a bail bond
d. Premiums on appeal bonds
a. Payment for all defense costs
The limit of liability is the most paid by the insurer regardless of all of the following, except:
a. Number of insureds
b. Premiums shown
c. Number of vehicles involved
d. Amount of surcharges to be applied to policy
d. Amount of surcharges to be applied to policy
A Medical Payments claim will be paid by the insurer within how many months from the date of the occurrence?
a. 18
b. 24
c. 36
d. 60
c. 36 (3 yrs)
7) Which of the following uses of a vehicle is not excluded under the Medical Payments coverage?
a. Insured uses a truck for incidental purposes
b. A neighbor uses the insured's car without permission
c. An insured drives a company car
d. An insured rides a motorcycle
a. Insured uses a truck for incidental purposes
Which of the following is covered under Part C - Uninsured Motorist Coverage?
a. Punitive damages awarded for the insured
b. Accident was caused by a hit-and-run driver
c. The insured is also covered by Workers' Compensation
d. A family member is struck by an insured vehicle
b. Accident was caused by a hit-and-run driver
An uninsured motor vehicle is any of the following, except:
a. A company car
b. A vehicle that does not have insurance
c. A vehicle insured by an insolvent insurance company
d. A vehicle with liability limits less than the state requirement
a. A company car
Comprehensive covers all of the following losses, except:
a. Falling objects
b. Theft
c. Contact with a deer
d. Rollover
d. Rollover
[Collision Coverage includes Rollover]
The insurer's limit of liability for a vehicle damaged by a loss under Part D is which of the following?
a. Actual cash value
b. Replacement value
c. The lesser of actual cash value and replacement value
d. The greater of actual cash value and replacement value
c. The lesser of actual cash value and replacement value
Which of the following is not a duty of the insured if the insured's vehicle is damaged when it hit a tree?
a. Submit a proof of loss
b. Call the police
c. Promptly notify the insurance company
d. Submit to a physical exam
b. Call the police
[You must call the police in the case of a collision]
If an insurer non-renews an insured's policy for underwriting reasons, what is the minimum number of days' notice to the insured?
a. 20
b. 30
c. 45
d. 60
a. 20
After an automobile policy has been in effect for 60 days, the insurer may cancel the policy for any of the following reasons, except:
a. Non-payment of premium
b. Material misrepresentation of information on the application by the insured
c. Submission of four or more claims during a single policy period
d. Suspension of the driver's license of the named insured's or household resident
c. Submission of four or more claims during a single policy period
What is the purpose of the Extended Non-Owned Coverage for a Named Individual endorsement?
a. Coverage is extended 25 miles into Mexico
b. Covers non-owned vehicles furnished for the insured's regular use
c. Covers an individual who does not own a car
d. Extends coverage for a leased vehicle
b. Covers non-owned vehicles furnished for the insured's regular use
Policyholder B has a business auto policy with limits of 100/300/50. In an accident for which B was liable, there were BI claims in the amounts of $80,000; $100,000; and $125,000; and PD claims of $20,000 and $35,000. How much will his policy pay?
a. $305,000 BI and $55,000 PD
b. $280,000 BI and $50,000 PD
c. $300,000 BI and $50,000 PD
d. $305,000 BI and $50,000 PD
b. $280,000 BI and $50,000 PD
[ - Policy holder B has 100,000 BI per person, 300,000 BI total, and 50,000 PD total per accident
- 80,000 + 100,000 + 125,000 = 305,000 total so max only 300,000 would be paid
- BUT there is a 100,000 per person limit and 1 person is at 125,000 in BI claims
- 80,000 + 100,000 + 100,000 (adjusted) = 280,000 in BI
- As for PD: 20,000 + 35,000 = 55,000 which is 5,000 over limit
- So PD = 50,000]
Transportation expenses resulting from a collision or OTC loss will be paid up to what amount under Part D of the PAP?
a. $200
b. $500
c. $600
d. $1,000
c. $600
The Personal Auto Policy may be used to insure all of the following, except:
a. A farm pickup
b. A station wagon
c. A conversion van
d. A motorcycle
d. A motorcycle
Of the following, which is covered under Part D - Coverage for Damage to Your Auto?
a. A newly acquired vehicle added to the policy within 14 days
b. Custom painting on a van
c. Road damage to tires
d. Radar and laser detection devices
a. A newly acquired vehicle added to the policy within 14 days
Which of the following is an insured's duty in the event of loss under the PAP?
a. Promptly notify the police in the event of a hit-and-run accident
b. Call the police if legal papers are received
c. Refer the claim adjuster to an attorney
d. Contact the at-fault party
a. Promptly notify the police in the event of a hit-and-run accident
Which of the following is covered under Part A of the Personal Auto Policy?
a. Property damage to a company car
b. Injury to an employee while away from work
c. Damage caused driving a neighbor's car without permission
d. Damage to property owned by the insured
b. Injury to an employee while away from work
Under a PAP, liability resulting from the insured's use of a non-owned auto is:
a. Shared pro rata between the insured's policy and the policy on the vehicle
b. Provided on an excess basis
c. Not covered because of the Care, Custody and Control Clause
d. Provided on a primary basis
b. Provided on an excess basis
Which of these statements is not true about Uninsured Motorist coverage?
a. Bodily injury must be caused by another person who is legally responsible
b. A hit-and-run driver is considered uninsured
c. A driver is considered uninsured when his/her insurer denies a claim
d. Coverage is automatically provided for the damage to the insured vehicle
d. Coverage is automatically provided for the damage to the insured vehicle
All of the following are true about a newly acquired additional vehicle, except:
a. Coverage is as broad as the broadest coverage on any vehicle under the policy
b. It can be used to transport goods for hire if receipts are less than $10,000
c. It must be reported to the insurer within 14 days of purchase
d. It may be used on a farm
b. It can be used to transport goods for hire if receipts are less than $10,000
The Limited Mexico coverage provides coverage for how many miles into Mexico?
a. 25 miles
b. 10 miles
c. 50 miles
d. 100 miles
a. 25 miles
Automobile collision insurance under the Personal Auto Policy provides payment for losses:
a. To your car and the car you run into
b. To the car you run into, regardless of liability
c. To your car only if you are legally liable
d. To your car, regardless of liability
d. To your car, regardless of liability
Which of the following is not true about a claim payment for a Part D under Personal Auto?
a. The insurance company can keep or return a stolen car
b. The claim payment will include any applicable sales tax
c. If the insurer returns stolen property to the insured, no payment for damages incurred will be made
d. The insurance company can decide whether to pay cash or repair the vehicle
c. If the insurer returns stolen property to the insured, no payment for damages incurred will be made
The Miscellaneous Type Vehicle Endorsement attached to a Personal Auto Policy allows eligibility of a motorcycle by:
a. Amending the definition of 'your covered auto' and 'newly acquired auto' to include any miscellaneous type vehicle
b. Altering the four-wheel requirement
c. Adding motorcycles to the list of eligible vehicles
d. Specifically naming it in the Declarations
a. Amending the definition of 'your covered auto' and 'newly acquired auto' to include any miscellaneous type vehicle
Which of the following is not a valid reason to cancel a personal auto policy after the first 60 days of coverage?
a. Driver's license suspension
b. Non-payment of premium
c. Material misrepresentation
d. Claims history
d. Claims history
A temporary substitute vehicle is not a covered auto if used to substitute for which of the following?
a. Owned trailer
b. Rental car
c. An owned car
d. Recently purchased van
b. Rental car
The Personal Auto Policy applies:
a. Anywhere in the world
b. Only in the U.S., its territories, Canada, and Puerto Rico
c. Only in the U.S., its territories, Canada, Puerto Rico, and Mexico
d. Only in the U.S. and its territories
b. Only in the U.S., its territories, Canada, and Puerto Rico
When an auto has two auto policies with the same insurer, the insurer's liability would not exceed:
a. The limit of the first one purchased
b. The highest limit of the two policies
c. The limit of the last one purchased
d. The combined limit of the two policies
b. The highest limit of the two policies [Show Less]