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WorksheetsPersonal Auto Policy (PAP)
Total questions: 48
Worksheet time: 48mins
Part E of the Personal Auto Policy states that after a loss the insured must:
If the vehicle was stolen, contact the insurer for permission to report the theft to the police
Immediately initiate repairs to the vehicle to protect it from further damage
Protect the auto from further damage
Give notice of the accident to the insurer within 30 days
The Personal Auto Policy's definition of family member includes:
A member of the named insured's immediate family, regardless of place of residence
Persons related to the Named Insured who have frequent use of the insured automobile
A person related to the named insured who is a resident of the household (including a foster child)
Any person using the insured automobile with the named insured's permission
Gavin, the named insured under a personal auto policy, his daughter Tabatha, and two of her friends are riding in the covered auto when Gavin accidentally runs a stop sign, striking another vehicle. Everyone in Gavin’s vehicle was injured as well as the driver and two passengers in the other car. How long do Tabatha‘s friends have to submit medical expense claims for coverage under part B of Gavin’s Personal Auto Policy?
Within 2 years of the date of the accident.
Tabatha's friends are not covered.
Within 5 years of the date of the accident
Within 3 years of the date of the accident.
The insured carries a Personal Auto policy providing a bodily injury limit of $50,000 per person with a per accident injury limit of $100,000. He injured two occupants in another vehicle. Their injuries total $60,000 for Mr. Jones and $50,000 for Mrs. Jones. The insurance company spent $40,000 in defense and investigation costs. How much will the insured policy pay?
$100,000
$140,000
$150,000
$120,000
Which of the following statements is TRUE concerning Part A – Liability coverage on a standard Personal Automobile policy?
The coverage is provided only for accidents caused by those who are “insureds” under the policy.
It is usually written on a combined single limit
There is usually a $500 deductible.
The coverage is provided only if the insured is found negligent in an accident.
Which of the following would be excluded under Part A-Liability of the Personal Auto policy?
The insured's 13 year old son hits a parked car when driving the insured auto.
The neighbor borrowing the insured's car to pick up milk.
A person transporting people from the airport to nearby hotels for a fee.
The insured hits a pedestrian in a cross-walk while running a red light.
Supplementary payments under the liability section of a commercial auto policy include reasonable expenses incurred by the insured including loss of earnings up to _____ per day.
$200
$500
$250
$150
Part A - Liability of a standardized Personal Auto policy will provide coverage for which of the following vehicles?
A new car purchased by the insured 35 days ago.
The insured's car that gets struck by another vehicle while on the side of the road after getting a flat tire.
The family car while being used in carpool.
The insured's car after hitting a moose.
The personal auto policy will exclude liability for the regular use of a non-owned vehicle. Tom is driving a company car for personal reasons a few times a week. Which of the following will cover Tom's personal use of the company car on Tom's PAP?
Joint Ownership Coverage
Collision coverage
miscellaneous type vehicle coverage
Extended non-owned coverage
Under the garage policy, coverage to reimburse the garage to replace the faulty parts would be covered by?
Non-owned Auto coverage
Broad Form Products coverage
Employees as insureds
Lessor-Additional Insured
What endorsement to the commercial auto policy is necessary to cover the use of a non-owned vehicle for personal use by the business owner?
coverage for non-owned autos
trucker's policy
drive other car coverage
garage keeper's legal liability
Garage Keepers coverage pays for damage done to the customer's car left for service. The premium for this coverage is based on
past claims experience.
the number and value of the cars left in the insured's care and the deductible chosen for the coverage.
the number and value of the cars left in the insured's care.
the deductible chosen for the coverage.
Physical damage coverage on the business auto policy is based on the value of the vehicles insured. Which of the following is an alternative to the expensive Comprehensive coverage?
Broad form products coverage
Medical Payments coverage
Collision coverage
Specified coverage
All of the following are types of Commercial Auto coverage forms, EXCEPT
Business Auto
Mobile Equipment
Motor Carrier
Garage
Which of the following is excluded on the Garage policy?
customers test driving lot cars
injury to customers on the premises
damage to the customer car left for repair
mechanics test driving customers cars
The Motor Carrier Act of 1980 requires all of the following liability limits, EXCEPT
5,000,000 for hazardous substances.
750,000 for general cargo.
1,500,000 for livery of people.
1,000,000 for oil.
Interstate transportation service providers will use which of the following commercial auto forms?
Motor Carrier
Garage
Business Auto
Personal Auto
Rick is driving his own car on company business. If there is an at-fault accident and Rick is negligent, what is needed to have the employer's commercial auto policy cover Rick as an individual in the lawsuit?
Non-owned Auto coverage
Employees as insureds
Broad Form Products coverage
Lessor-Additional Insured
After an accident, Tim's car is in harm's way and needs to be moved. Which of the following would pay for this expense?
Other Than Collision coverage
Towing and Labor
Collision coverage
Transportation coverage
Phil and Don are twins and both on the title of the car. Which of the following would cover these two related but not married individuals on a personal auto policy?
Liability section A
Physical Damage section D
Dual Title endorsement
Joint Ownership endorsement
The personal auto policy will consider 4 wheel, private passenger type vehicles as eligible autos. Lou would like to cover his Harley Davidson Fat Boy on the policy. Which of the following, if any, would be necessary on the policy?
list it on the declarations page
removal of the 4 wheel minimum requirement by the insurer
add the miscellaneous type vehicle endorsement
cover the motorcycle for an agreed value
Which of the following is not a coverage available under the physical damage section of the business auto policy?
Medical payments
Comprehensive Coverage
Specified coverage
Collision coverage
Since a leasing company still owns the vehicle, they will require which of the following on the commercial auto policy of the business leasing the vehicle?
Lessor-Additional Insured
Broad Form Products coverage
Non-owned Auto coverage
Employees as insureds
All of the following are eligible for the Garage coverage form, EXCEPT
car wash
parking lots
painting contractor
used car dealer
Fred is concerned about paying for a rental car if his car is in an accident. Which of the following should be on his policy?
Collision coverage
Comprehensive coverage
Transportation coverage
Substitute Transportation coverage
The definition of bodily injury, according to a personal auto policy, does NOT include
bodily harm.
loss of use.
death.
sickness.
The business auto medical payments coverage
covers necessary medical and funeral expenses resulting from accidental bodily injury incurred within two years of the accident date.
will pay excess over Workers' Compensation benefits for employee injuries.
will not cover injuries sustained by employees of the insured if the injury arises out of and in the course of their employment.
is automatically included on the business auto policy per state insurance regulations.
Benjamin carries an automobile policy with Company A that has a single limit of $50,000. He borrows an auto from a neighbor who carries an automobile policy with Company B that has a single limit of $100,000. While driving the borrowed auto, Benjamin is involved in an at-fault accident in which a judgment of $125,000 is rendered against him. The loss will be paid in what way (Company A/Company B)?
$62,500/$62,500
$75,000/$50,000
$50,000/$75,000
$25,000/$100,000
The supplementary payments provided by business auto coverage do NOT include
the cost of appeal bonds.
the cost of bail bonds.
waiving the collision deductible.
pre-judgment and post-judgment interest on financial awards.
Under the trucker's coverage form what statement is true?
Trailer interchange coverage may be added to this form.
Trailer interchange covers loss to non-owned trailers in your possession for any reason, regardless of negligence on your part.
Trailer interchange covers loss to cargo within a non-owned trailer hauled by the insured.
Trailer interchange covers transporting hazardous substances.
What would NOT be considered a type of collision loss?
insured's auto collides with a relative's auto on the insured's property
while on a hunting trip, an insured's auto strikes a moose
while drag racing with a friend, an insured's auto overturns
covered auto striking a telephone pole
As a condition of automobile coverage, the insured is required to do what in the event of an accident?
notify the police department of the accident as soon as possible
report the accident to the state insurance department
report the accident to the state motor vehicle department
notify the insurance company of the accident as soon as possible
Joe owns a personal auto policy with liability limits of 100/300/50. Two people struck by Joe are awarded $75,000 and $120,000. What will Joe's policy pay?
$175,000
$195,000 plus defense costs
$175,000 plus defense costs
$195,000
An insured has an automobile policy with a combined single limit of $500,000 for bodily injury and property damage. After an accident, a court awards $300,000 for bodily injury and $25,000 for property damage to claimant #1, and $200,000 for bodily injury and $25,000 for property damage to claimant #2. In this situation, the insurance company's limit for liability is
$500,000.
$350,000.
$300,000.
$550,000.
What is NOT true about the business auto drive other car coverage endorsement?
Coverage extends to any auto owned by the named insured individual.
Coverage extends only to the individual named in the endorsement (and spouse).
The endorsement extends both liability and physical damage coverage to a non-owned private passenger auto used by the individual named in the endorsement.
The endorsement changes the liability coverage of the business auto policy to insure the named individual and the spouse while using any non-owned auto for personal use.
In automobile insurance, additional (supplementary) payments refer to
payments made by the insured for damages exceeding the policy limits.
payments made by the insurance company for the insured's own medical expenses, to supplement any other medical insurance.
payment of Bail and Appeal bonds and accrued interest on judgments.
payments received by the insured directly from the person or persons who caused a loss.
Jim Johnson has an automobile policy with a combined single limit of $50,000. He has an at-fault accident and incurs the following expenses: $30,000 bodily injury judgment, $30,000 property damage judgment, $6,000 attorney's fees for his defense, $300 in premiums for appeals bond, and $75 in bail bond premiums for related traffic violations. What is the maximum amount his insurance company will pay?
$56,375
$66,375
$60,375
$50,000
When making a claim against the Underinsured Motorist coverage, which of the following is true?
You must subtract from your coverage what you received from any other source.
Your UIM coverage stacks on top of what you can collect from the at fault driver.
You are not required to have had insurance at the time of the accident.
Your UIM coverage is lower or equal to the liability limits of the at fault party.
Which of the following is NOT true about the unendorsed personal auto policy containing Uninsured/Underinsured Motorist coverage?
Property damage caused by a hit skip driver is not covered.
Bodily injury to a passenger is covered.
Property damage to the insured's car is covered.
Bodily injury to a family member is covered.
