Auto

Question 1

Financial responsibility

Answer 1

• Auto insurance is not mandatory in Indiana.

* proving financial responsibility is mandatory

Question 2

Proving financial responsibility:

D. I. B. S

Answer 2

D-deposit cash with treasurer. $40,000
I-Insurance: purchase at least the minimum limits for Indiana. 25/50/25.
B-BMV approved you as a self insurer
S-surety bond provided to the state. $75,000

Question 3

Accident with a borrowed vehicle

Answer 3

• The owners vehicle is borrowed with permission.

* The driver is involved in an auto accident.

Question 4

How will the insurance company pay

Answer 4

Owners.
Primary
Owner &
driver

Drivers  Excess/secondary Driver only

Question 5

Declarations-definition part a part B Part C Part D Part E Part F

Answer 5

• Liability bodily injury and property damage.
• Medical payments to you and yours. •Uninsured and underinsured motorist. •Damage to your auto/physical damage. Collision and other than collision (comprehensive)
• Duties after an accident or loss.
• General provisions

Question 6

The Declarations

Answer 6

• The named insured always listed on the declaration.
• The vehicles Vin. Must have at least four wheels never used for delivery.
• Policy period/Policy term.
• The coverage limits 25/50/25

Question 7

An insured

Answer 7

Age/drivers license is not factor for a claim

Question 8

Owned auto

Answer 8

A trailer owned by the named insured. Temporary substitute a borrowed vehicle/trailer that you are driving while yours is out of service/getting repaired.

Newly acquired auto: liability extends for 14 days

Newly acquire replacement auto: trading in a car for a new car. Liability is the same as the auto that was replaced till the end of the policy period.

Question 9

Nonowned auto

Answer 9

A private passenger auto, farm auto, or trailer not owned by or furnished for the regular use of either you or your relatives, other than a temporary substitute auto

Question 10

Hired auto

Answer 10

Provides coverage only for autos leased, hired and rented by the named insured

Question 11

Cancellation clause

Answer 11

Nonpayment of premium – 10 days

Question 12

Cancellation for reasons other than non-payment

Answer 12

60 days or less – Notification requirement 10 days

More than 60 days/non-renewal – 20 days

Question 13

Acceptable reasons for cancellation after 60 days in affect

Answer 13

• Suspended or revoke license. •Concealment, fraud or misrepresentation.
• A drinking/drug use violation while driving.
• Moving to a state where the insurance company has not been admitted

Question 14

Requirements for the cancellation and non-renewal letter

Answer 14

Requirements:
Cancellation
• reason.
•Coverage available through auto insurance plan.
•The right to a hearing with the commissioner

Nonrenewal:
•reason.
•Coverage available through auto insurance plan

Question 15

Bodily injury and property damage

Answer 15

• The only mandatory coverage when an auto policy is purchased.
• Pays when the insured is legally liable for bodily injury or property damage.

Question 16

The purpose of bodily injury

Answer 16

Hey is the third party when the first party is legally Liable before: 
•medical bills 
•lost wages 
•pain and suffering 
•funeral expenses. 
          Minimum limit 25/50

Question 17

The purpose of property damage

Answer 17

Pays the third-party when the first party is legally liable for damage to the property of others: 
•their cars
•their trees 
•their mailboxes 
•stop sign/telephone poles
              minimum limit: 25

Question 18

Split limits

Answer 18

One for bodily injury, one for property damage

Question 19

Combine single limit/Single limit

Answer 19

Bodily injury and property damage are shared per currents

Question 20

Convert a split limit to a single limit

Answer 20

Add the two per occurrence limits

Question 21

Action when an at fault accident occurs in a state with higher minimum

Answer 21

Indiana limit: 25/50/25.

Indiana limits after an at fault accident: 50/100/25

Question 22

Supplement payments

Answer 22

In addition to liability limits, they pay above and beyond the liability limit.

Loss of earnings for the named insured/insured to testify: up to $200 per day

Question 23

Medical payments

Answer 23

The only covers that pay is regardless of fault. Provides coverage when an accident caused by drinking and driving.

Question 24

Purpose of medical payments

Answer 24

Limits lawsuits

Question 25

Medical payment provides coverage to

Answer 25

* First party coverage for you and yours. •The named insured/passengers in the insured vehicle. * The named insured and family members when hit while a pedestrian/cyclist. •Named insured/family member as a passenger in an accident in another vehicle

Question 26

Medical payments coverage

Answer 26

Doctor bills dentist bills hospital bills funeral expenses

Question 27

Medical payments limits

Answer 27

Optional coverage. •No required limit. *The lowest available limit is $1000. *Max limit: $10,000. * Per person limit. * Three-year limit (36 months)from the date of an accident to place a claim

Question 28

First party coverage –Not at fault accident uninsured motorist bodily injury

Answer 28

There are three specific times that both uninsured motorist bodily injury and property damage will pay to the first party. 1. The third-party has no insurance. 2. The third parties insurance company has no money (insolvent). 3. The third-party has no Indiana minimum limits 25/50/25. Hit and run will pay for injuries. Require limits: minimum limits: 25/50. Requirements-optional •must be offered •can be rejected in writing.

Question 29

First party coverage – Not at fault accident: uninsured motorist property damage

Answer 29

There are three specific times that both uninsured motorist bodily injury and property damage will pay to the first party. 1. The third party has no insurance. 2. The third party’s insurance company has no money (insolvent). 3. The third-party has no Indiana minimum limits 25/50/25. Hit and run will not pay to fix your car. So fix your car you must carry collision. Required limits-Minimum limits: 25 Requirements: optional •must be offered without a deductible (maximum $300). •Not available without uninsured motorist bodily injury.

Question 30

Underinsured motorist

Answer 30

* First party coverage for injuries. * Pays when the third-party carries the Indiana state minimum limits (25/50)and doesn’t have adequate coverage for first party injuries. Requirements: •optional •must be offered Limits: minimum required limit is 50/50

Question 31

Damage to your auto/physical damage

Answer 31

Collision: •first party coverage-you and yours. •Fixes your car. Collision only covers: 1. hitting an object other than an animal. 2. Hit and run driver damages to your car. 3.Roll over (upset)

Question 32

Damage to your auto/physical damage

Answer 32

``` Other than collision/comprehensive •open peril coverage: theft vandalism impact with an animal/bird falling objects *glass breakage* (due to pebble, golf ball) flood fire earthquake wind storm hail ```

Question 33

Which coverage will pay for your windshield damage due to a rollover? Which coverage will pay to fix your vehicle when it is involved in a hit-and-run?

Answer 33

Collision

Question 34

Which coverage will pay if your car is stolen and found the next day crashed into a telephone pole?

Answer 34

Comprehensive

Question 35

Loss evaluation/settlement

Answer 35

Actual cash value

Question 36

Transportation expense

Answer 36

•A coverage that pays for transportation in the event of a covered loss. •Pays up to $20 per day/$600 per occurrence. •Waiting period: *48 hours after a theft to receive coverage. *24 hours after any covered loss

Question 37

Rental reimbursement

Answer 37

A coverage that pays the expense of a rental car while your vehicle is being repaired in the body shop after a covered accident

Question 38

Transportation networks company (TNC) drivers

Answer 38

Insurance company must provide a statement to TNC that states personal insurance may not provide coverage

Question 39

Duties after a loss Clause Part E

Answer 39

•Notify and cooperate with the insurance company. •Theft. *Notify the police. •If requested, must submit a proof of loss statement within 60 days. •Not required to get an appraisal Policy territory: the standard territorial definition

Question 40

Part F: general provisions exclusions

Answer 40

Carpooling is acceptable

Question 41

Arbitration

Answer 41

The insured an insurer cannot reach an agreement settling a claim

Question 42

Automobile insurance plan AIP

Answer 42

It is mandatory for all insurance companies to participate

Question 43

Coverage with auto insurance plan

Answer 43

•Can last three years. •The maximum coverage a limit is 25/50/25. •The maximum medical payment limit is $1000. *No rental reimbursement*

Question 44

Auto insurance plan ineligible

Answer 44

* Unlicensed drivers.  | * Owes past due premium for auto coverage during the past 12 months