Personal Auto Policy (PAP) Quiz

What is covered under 'Collision' coverage on a PAP?

• Flood damage

• Hitting a pole

• Earthquake

• Theft

Answer explanation

'Collision' coverage on a Personal Auto Policy (PAP) covers damage to your vehicle resulting from a collision, such as hitting a pole. It does not cover flood damage, earthquake, or theft.

What must be done if you are hit by a hit-and-run driver under UM?

• Notify the police

• File a lawsuit

• Contact your insurance agent

• Repair the vehicle immediately

Answer explanation

If you are hit by a hit-and-run driver, the first step is to notify the police. This is crucial for documenting the incident and starting an investigation, which is essential for any further actions like insurance claims.

What is required for a 'claims made liability' policy to cover a claim?

• The claim must be for property damage

• The claim must be filed within 30 days

• The claim must involve bodily injury

• The claim must occur after the retroactive date

Answer explanation

For a 'claims made liability' policy to cover a claim, it must occur after the retroactive date. This ensures that the policy is in effect at the time the claim is made, which is crucial for coverage.

Which of the following is NOT a supplementary payment under a PAP?

• Loss of earnings for trial appearances

• Accrued interest on judgments

• Insured's medical expenses

• Premiums on appeal bonds

Answer explanation

The correct answer is 'Insured's medical expenses' because it is not considered a supplementary payment under a Personal Auto Policy (PAP), while the other options are supplementary payments.

What is the purpose of uninsured motorist coverage?

• To cover towing and labor costs

• To protect against at-fault drivers with no insurance

• To cover medical expenses for passengers

• To cover damage to your own car

Answer explanation

Uninsured motorist coverage protects you if you're in an accident caused by a driver who has no insurance. This coverage ensures you can recover costs when the at-fault driver cannot pay.

What is the coverage limit for towing and labor on a PAP?

• Per event/occurrence basis

• Per year

• Per policy term

• Per month

Answer explanation

The coverage limit for towing and labor on a Personal Auto Policy (PAP) is typically provided on a per event/occurrence basis, meaning it applies to each individual incident rather than a cumulative total over time.

What is the coverage for a bird hitting your windshield under a PAP?

• Supplementary payments

• Medical payments

• Other than collision

• Collision

Answer explanation

A bird hitting your windshield is covered under 'Other than collision' in a Personal Auto Policy (PAP), as it involves damage from an object rather than a collision with another vehicle.

What is the coverage for hitting a deer under a PAP?

• Other than collision

• Supplementary payments

• Collision

• Medical payments

Answer explanation

Hitting a deer is covered under the 'Other than collision' portion of a Personal Auto Policy (PAP), as it does not involve a collision with another vehicle.

Which of the following is NOT covered under 'other than collision' coverage?

• Theft

• Rollover

• Flood

• Earthquake

Answer explanation

'Other than collision' coverage includes theft, flood, and earthquake damages. However, rollover incidents are considered collision-related, making 'Rollover' the correct answer as it is NOT covered under this type of coverage.

What is the coverage for flood damage under a PAP?

• Covered under other than collision

• Covered under property policies

• Not covered

• Covered under collision

Answer explanation

Flood damage is covered under the 'other than collision' section of a Personal Auto Policy (PAP), which includes various non-collision incidents like floods, making this the correct choice.