Insurance Policy Flashcard

Front

What situation is excluded from Part C – Uninsured Motorists coverage in Harper's auto insurance policy? Options: Bodily injury sustained by an insured while occupying a vehicle insured for uninsured motorists coverage, Losses settled with the insurer’s consent, Bodily injury sustained by a family member while occupying a vehicle with primary uninsured motorists coverage under another policy, Losses occurring when the insured is using the vehicle with a reasonable belief of entitlement.

Back

Bodily injury sustained by a family member while occupying a vehicle with primary uninsured motorists coverage under another policy

Answer explanation

Bodily injury to a family member in a vehicle with primary uninsured motorists coverage under another policy is excluded, as it does not fall under Harper's own policy's coverage.

Front

Under Part C – Uninsured Motorists of an auto insurance policy, what is the maximum amount the insurer will pay for any one accident?

Back

The minimum limits specified for bodily injury by the state

Answer explanation

The maximum amount the insurer will pay under Part C for an accident with an uninsured driver is limited to the minimum limits specified for bodily injury by the state, ensuring compliance with state regulations.

Front

What happens if more than one policy provides uninsured motorists coverage?

Back

The insured can collect up to the highest limit applicable to any one vehicle.

Answer explanation

In cases with multiple uninsured motorists coverage, the insured can collect up to the highest limit applicable to any one vehicle, ensuring they receive the maximum benefit from their policies.

Front

What is the role of Abigail's insurer when she occupies a non-owned vehicle?

Back

The insurer provides excess coverage

Answer explanation

When Abigail borrows a car, her own insurer provides excess coverage. This means that her policy will cover any costs after the primary coverage from the car owner's insurance is exhausted.

Front

What is the purpose of arbitration in a disagreement between Benjamin and his insurance company about coverage under Part C or the amount of damages?

Back

To resolve disagreements about entitlement to coverage or amount of damages

Answer explanation

The purpose of arbitration in this situation is to resolve disagreements about entitlement to coverage or the amount of damages, making it the correct choice.

Front

What does underinsured motorists coverage provide when the at-fault driver's liability insurance is insufficient?

Back

Coverage for damages exceeding the at-fault driver's liability insurance

Answer explanation

Underinsured motorists coverage provides compensation for damages that exceed the at-fault driver's liability insurance limits, helping Hannah cover her total losses.

Front

Who is considered an insured under Charlotte's Personal Auto Policy when her family members use her car to run errands?

Back

The named insured and family members using any auto

Answer explanation

Under a Personal Auto Policy, the named insured and family members using any auto are covered. This includes family members driving Charlotte's car for errands, making this the correct choice.

Front

What is the purpose of no-fault insurance in a minor car accident involving Anika and Aiden?

Back

To reimburse the insured regardless of fault

Answer explanation

No-fault insurance allows Anika and Aiden to receive compensation for their medical expenses and damages without determining who was at fault in the accident, ensuring they are reimbursed regardless of fault.

Front

What type of insurance plan might Jackson be eligible for given his history of traffic violations and accidents?

Back

Plans to provide auto insurance to drivers unable to obtain it due to bad driving records

Answer explanation

Jackson may be eligible for plans to provide auto insurance to drivers unable to obtain it due to bad driving records, as his history of violations makes traditional coverage difficult to secure.

Front

What does the Business Auto Coverage form include?

Back

Liability and physical damage coverage

Answer explanation

The Business Auto Coverage form includes both liability and physical damage coverage, ensuring comprehensive protection for business vehicles. This makes 'Liability and physical damage coverage' the correct choice.