Insurance Coverage Flashcard

Front

Purpose of Part B limits of liability in auto insurance policy?

Back

To specify a single amount paid per person injured in an accident

Answer explanation

The Part B limits of liability specify the maximum amount paid per person injured in an accident, ensuring that there is a clear financial cap on liability for injuries caused to others.

Front

Evelyn owns a car and purchases two separate auto liability insurance policies from different companies. What happens if she gets into an accident and files a claim?

Back

Each insurer pays only their share of the loss

Answer explanation

When multiple auto liability insurance policies are in place, each insurer typically pays only their share of the loss, rather than one insurer covering the entire amount. This ensures fair distribution of liability.

Front

Whose policy is the primary insurer when Scarlett borrows a car and gets into an accident?

Back

The owner's policy

Answer explanation

In this scenario, the owner's policy is the primary insurer because the car belongs to the friend. The owner's insurance typically covers accidents involving their vehicle, even if someone else is driving.

Front

What is the primary advantage of medical payments coverage under Part B in an auto insurance policy?

Back

It helps recover the health plan's deductible

Answer explanation

The primary advantage of medical payments coverage under Part B is that it helps recover the health plan's deductible, ensuring that medical expenses are covered regardless of fault in an accident.

Front

What does Part D – Physical Damage Insuring Agreement cover?

Back

Physical damage to the insured's own car

Answer explanation

Part D – Physical Damage Insuring Agreement covers physical damage to the insured's own car, which is what William needs for repairing his vehicle after the accident.

Front

Which situation is NOT covered under collision coverage? Options: Theft of the vehicle, Hitting a rock in the road, Hitting a barrier, Impact with another vehicle

Back

Theft of the vehicle

Answer explanation

Collision coverage protects against damage from accidents, such as hitting a rock, barrier, or another vehicle. However, it does not cover theft of the vehicle, which falls under comprehensive coverage.

Front

Type of coverage that protects against car damage by fire overnight.

Back

Fire and theft

Answer explanation

Luna's car was damaged by fire, so the correct coverage is 'Fire and theft.' This type of insurance protects against damages caused by fire, unlike the other options which do not apply to fire damage.

Front

What is the maximum amount Emma can be reimbursed for transportation expenses per day?

Back

$20

Answer explanation

Emma can be reimbursed a maximum of $20 per day for transportation expenses, which is the correct choice among the options provided.

Front

Waiting period before transportation expenses are covered after car theft?

Back

48 hours

Answer explanation

James must observe a waiting period of 48 hours before claiming transportation expenses after his car is stolen. This is a standard requirement in many insurance policies.

Front

Which situation is not covered under Part D of an auto insurance policy? Options: Theft, Fire damage, Wear and tear, Collision with another vehicle

Back

Wear and tear

Answer explanation

Wear and tear is not covered under Part D of an auto insurance policy, as it refers to the gradual deterioration of the vehicle, unlike theft, fire damage, or collision, which are covered events.