Personal Auto and Umbrella Liability Policies

Question 1

4 Primary parts of the Personal Auto Policy (PAP)

Answer 1

1. Liability Coverage
2. Medical Payment Coverage
3. Uninsured Motorists Coverage (UMC)
4. Physical Damage Coverage

Question 2

Name a 3 things that would not be covered by Personal Auto Policy?

Answer 2

1. Vehicle rented to others/used for Uber
2. Vehicle with more than 4 wheels
3. A pick up truck over 10k pounds

Question 3

True or False

PAP only covers automobobiles, not motorcycles, golf carts, snowmobiles, etc.

Answer 3

False; these personal use vehicles can be added via endorsement

Question 4

What is a Split Limit Basis on a PAP?

Answer 4

There is a separate limit for bodily injury and property damage liabilities

Question 5

What goes on the declarations page of a PAP? (4 things)

Answer 5

1. Factual info concerning the insured
2. Vehicles Covered
3. Other identifying info
4. Coverage limits

Question 6

True or False

Death/Funeral expenses can be considered covered charges under Medical Payment coverage of the PAP

Answer 6

True

Question 6

Who has Uninsured Motorists Coverage (UMC)?
(aka Part C of PAP)

(3 things)

Answer 6

1. Insured and family members occupying a vehicle or as a pedestrian.
2. Anyone occupying a covered auto
3. Any person legally entitled to recover damages (e.g. if you kill someone in an accident, their wife is entitled)

Question 6

2 main parts of “Part D: Coverage for Damage to your auto” in a PAP

Answer 6

1. Collision Coverage
2. Other than collision coverage

(open peril basis)

Question 7

How does a Personal Umbrella Policy expand the liability coverage of an individual/family? (2 ways)

Answer 7

1. Increased maximums limits
2. Slightly broader coverage

(e.g. world wide auto liability, personal injuries like slander, etc.)