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Exam 20: Auto Insurance

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Question 1

Multiple Choice

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Duties of an insured after a collision loss covered under the PAP include which of the following? I.Take reasonable steps to protect the vehicle from further damage. II.Admit fault if the insured believes he or she caused the collision.

A) I only
B) II only
C) both I and II
D) neither I nor II

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Question 2

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In which of the following situations would medical payments be paid under an unendorsed PAP?

A) injuries incurred while riding a motorcycle
B) injuries incurred while an auto is being used without the presumption that permission would have been granted to use the auto
C) injuries incurred in an auto while it is used in a share-the-expense car pool
D) injuries incurred during the course of employment if workers compensation benefits are available

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Question 3

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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 is considered to be a collision loss under Part D (coverage for damage to your auto) of the PAP?

Which of the following statements about the uninsured motorists coverage of the PAP is true?

In addition to providing coverage in the United States, its territories and possessions, and Puerto Rico, where else does the PAP provide coverage?

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

Which statement concerning towing and labor coverage under the PAP is (are) true? I.There's no coverage for towing if the auto breaks down-towing is only covered if the auto needs to be towed after a collision has occurred. II.Towing and labor coverage pays for repairs at a service station or garage.

John occasionally borrows the car of his friend, Sophie. Sophie has a PAP with liability limits of 100/300/50. John also has a PAP, and his liability limits 250/500/50. John had an accident while using Sophie's car and was found to be legally liable for $300,000 in bodily injury liability for injuries suffered by one person. How much will be paid by each policy?

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?

All of the following are considered to be a covered auto under the Personal Auto Policy EXCEPT

John has an auto which is covered for collision losses subject to a $250 deductible. Kate's auto also has collision coverage but her deductible is $500. Which of the following statements describes how a $2,000 collision loss will be paid if it occurs when John borrows Kate's car because his car is in the shop for repairs?

Which of the following statements concerning the collision damage waiver when renting an auto is true? I. It relieves the renter from legal liability to third parties arising out of operation of the rented car. II. It relieves the renter from legal liability for the vehicle if it is damaged or stolen.

The purpose of the Miscellaneous-Type Vehicle Endorsement to the PAP is to

A vehicle is considered a constructive total loss when

The insurance company's options for settling a collision loss to a covered auto under the PAP include which of the following? I.Pay the loss in money. II.Repair or replace the damaged auto.

The 2005 PAP states that the insurer has no duty to provide coverage if the insured fails to comply with certain listed duties. In practice, however, the insurer is only relieved of its duty to provide coverage if

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.

All of the following statements about Part D (coverage for damage to your auto) of the PAP are true EXCEPT

After the Personal Auto Policy has been in force for 60 days (or is a renewal policy) , all of the following are grounds for the insurer to cancel the policy EXCEPT