Casualty Insurance Flashcards
The medical payments limit of liability shown in the declarations of Candy’s personal auto policy is $2,000. Candy is injured twice in two separate accidents involving her covered auto. The medical payments expenses for the first accident are $1,500 and $3,800 for the second accident. What is the maximum that her policy will pay for expenses resulting from the two accidents?
$3,500
The medical payments limit shown in the declarations is the maximum that the insurer will pay for each person injured in a single accident. In this case, her insurer will pay $1,500 for the first accident and $2,000 (the maximum allowed for an accident) for the second accident.
How does medical payments coverage under the personal auto policy differ from medical payments coverage under a homeowners policy?
PAPs cover medical payment for third parties and resident members of the insured’s family. Homeowners policies cover medical payments for third parties.
The PP 01 67 endorsement amends policy provisions in a personal auto policy that are related to all but which of the following conditions?
grace period
All of the following statements about a no-fault auto insurance system are true EXCEPT:
No-fault benefits compensate injured parties for pain and suffering.
Regarding the personal auto policy (PAP) limit of liability for losses to vehicles and equipment, what is the most an insurer will pay for permanently installed after-market CB (citizen’s band) radio equipment?
$1,000
All of the following statements regarding accident coverage under the Limited Mexico Coverage endorsement are correct EXCEPT:
To be covered, an accident must occur more than 25 miles from the U.S. border.
Medical payments coverage pays for necessary medical and funeral services so long as the expenses were incurred within how many years from the accident date?
three years
Derek takes his car to an auto dealership that loans him a car while his own is being repaired. Derek checks his personal auto policy to see what coverages apply to temporary substitute autos. He learns that a temporary substitute is NOT considered a covered auto for purposes of:
physical damage (collision and other-than-collision) coverage
All of the following vehicles are excluded from coverage under medical payments coverage in the personal auto policy EXCEPT:
a sports car borrowed from its owner
Eric fails to pay the premium on his personal auto policy. The grace period provision allows him to pay the premium within how many days after the due date?
7 days
The personal auto policy (PAP) defines many terms used in the policy, such as “your covered auto.” Which of the following autos is NOT included in the meaning of that term?
borrowed autos
A leased auto may be listed in the declarations in a personal auto policy (PAP) if it is leased to the named insured under a written contract for at least:
6 months
In which of the following situations would uninsured motorist coverage NOT protect the owner of an insured vehicle following an accident?
The other driver left the scene of a hit-and-run accident but was later identified.
Coverage under the Extended Non-Owned Coverage endorsement is most often used for a:
company car
Rebecca has a personal auto policy (PAP) with a $500,000 limit and a $1 million personal umbrella policy (PUP) with a $500 retained limit (deductible) for slander and defamation. She is at fault in an auto accident that is settled for $600,000. How will this settlement amount be paid?
Rebecca will pay nothing, the PAP insurer will pay $500,000, and the umbrella insurer will pay $100,000.
