Automobile Insurance

Question 1

Chapter 90 - Financial Responsibility Law

Answer 1

States that auto insurance is compulsory/mandatory in Massachusetts

Question 2

Massachusetts Personal Auto Policy

Answer 2

A package providing auto liability, personal injury protection, uninsured motorist and physical damage coverages, among others

Question 3

2 Categories of a Massachusetts Personal Auto Policy

Answer 3

-Compulsory Insurance
-Optional Insurance

Question 4

Compulsory Insurance

Answer 4

There are 4 parts all required by law
*Every auto registered in Massachusetts must have them

Question 5

Optional Insurance

Answer 5

There are 8 parts
-some parts extend the coverage or amounts of protection
provided by Compulsory Insurance
-Some parts provide protection not found in Compulsory
Insurance
An individual is NOT required to purchase any of these optional coverages

Question 6

Massachusetts Personal Auto Policy Eligibility

Answer 6

In order to be eligible for coverage under the Massachusetts Person Auto Policy the vehicle must be:
1. A land moto vehicle
-Private Passenger Auto
-Pick-up truck
-Panel Truck
-Van
-Motorcycle
2. A trailer designed to be pulled by a private passenger auto
3. Motor vehicles owned/leased under a written agreement of 1 year or longer

Question 7

Accident

Answer 7

An unexpected, unintended or fortuitous event which results in bodily injury or property damage to others arising out of the ownership, maintenance or use of a covered auto

Question 8

Included Autos
Massachusetts Personal Auto Insurance

Answer 8

A Land Motor Vehicle
1.Private passenger auto
2. Pick-up
3. Van
4. Jeep
5. Trailer

Question 9

NOT Included Autos
Massachusetts Personal Auto Insurance

Answer 9

-any vehicle operated on rails or crawler treads
-any vehicle or trailer while it is located for use as a residence or premises
*Such vehicle will be considered an auto while it is being used
on public roads, or for recreational use
-A farm tractor or other equipment designed for use principally off public roads
*A tractor or other equipment will be considered an auto while
it is being used on public roads
-Any vehicle not subject to Massachusetts Motor Vehicles registration
*Moped
*Dirt-bike
*Minibike
*Scooter
*Snowmobile
*All-terrain vehicle (ATV)

Question 10

Auto Liability

Answer 10

Protects an insured if he/she is legally liable or responsible for bodily injury or property damage to others arising out of the operation, maintenance or use of an auto
*This coverage pays on behalf of an insured
*The insurer is legally obligated to pay if an insured injures
another or damages the property of others in an auto accident
*Liability losses are not paid as a result of war or nuclear perils

Question 11

Bodily Injury

Answer 11

Bodily injury or harm to others, including sickness, disease and even death

Question 12

Private Passenger Auto

Answer 12

-A motor vehicle of the private passenger or station wagon type that is owned or leased under contract for a continuous period of at least 12 months by one or more individuals excluding:
*Partnerships
*Corporations
*Unincorporated business associations
*Other legal business entities with federal employer
identification number
-Not used as a public or livery conveyance nor rented to
others
*Share he expense car pooling is permitted
-A motor vehicle that is a pick-up or van, that is owned or leased under contract for a continuous period of at least 12 months by one or more individuals excluding:
*Partnerships
*Corporations
*Unincorporated business associations
*Other legal business entities with a federal employer
identification number AND
-Has a gross vehicle weight rating of less than 10,000 pounds
or has a rating symbol assigned to it by the Insurance
Services Office (ISO)
-Is not used for delivery or transportation of goods or
materials unless such use is incidental to the insured’s
business of installing, maintaining or repairing furnishings or
equipment

Question 13

Property Damage

Answer 13

-The physical damage to or destruction of the property of others in an accident for which the insured is liable
-It also includes the loss of use of tangible property of others

Question 14

Owned Auto

Answer 14

The auto that the named insured owns and insured under the auto policy
*An auto policy provides liability insurance protection when a
named insured or any covered family member is legally
accountable for bodily injury or property damage to others
when operating an owned vehicle

Question 15

Non-Owned Auto

Answer 15

-The auto policy also covers an insured or family member f they are responsible for BI or PD to others while operating a non-owned auto
-If an insured injures a person while operating a non-owned auto and the owner of that auto carries no liability protection, the insured will have protection under his/her own policy
-An auto policy provides coverage for an insured (and family) while operating an owned or non-owned motor vehicle

Question 16

Insured

Answer 16

-The named insured or any household (family) member operating the covered auto or trailer
-Any person using the auto with the permission of the insured

Question 17

Your Auto

Answer 17

-The vehicle listed on the coverage selection page
-A land motor vehicle designed for use on public roads including a passenger auto, pick0up, van, jeep or similar vehicle
*It may also include a temporary substitute auto, trailer,
replacement vehicle, motorcycle, or an additional or newly
acquired vehicle
-All covered auto must have a gross vehicle weight of less than 10,000 pounds and not be used for the delivery or transportation of goods or materials unless they are incidental to your business of installing, maintaining or repairing furnishings or equipment

Question 18

Occupying

Answer 18

Being in, on or upon, getting in, or out of the auto
-An individual “under the hood” of the auto conduction
maintenance on the vehicle is considered “occupying” the auto

Question 19

Collision

Answer 19

The accidental upset of the auto or any damage resulting physical contact of the auto with another object

Question 20

Household Member

Answer 20

Anyone living in the household who is related to the named insured by blood, marriage or adoption
-This includes wards, step children or foster children
*NOT an au pair or nanny

Question 21

Pedestrian

Answer 21

Includes anyone incurring bodily injury as a result of being struck by an auto in an accident and who is not occupying an auto at the time of the accident, or who is riding a bicycle or tricycle, riding on horseback or in a horse drawn vehicle

Question 22

Compulsory Insurance

Answer 22

-Massachusetts law requires an individual provide proof of insurance before he/she can register an auto
*State law does not require that you carry more than
compulsory coverages
*If you have a lien on the auto, the lender may legally require
that physical damage coverage to be carried
-Compulsory insurance does not provide coverage for damage to your auto

Question 23

Part I - Bodily Injury to Others

Answer 23

-Will pay damages to people injured or killed by your car only in an accident that occurs in Massachusetts
*The damages paid are the amounts the injured person is
entitled to collect for bodily injury as a result of a court
judgment or settlement
*The policy will only pay on the insured’s behalf if the insured or
someone else using the insured auto with consent is legally
liable or responsible for the accident

Question 24

Minimum Required Limits of Liability
Part I - Bodily Injury to Others

Answer 24

-The minimum required limits of liability that must be carried under Part I are $20,000 per person and $40,000 per accident
*The most the policy will pay for any one person injured is
$20,000
*The most that will be paid for 2 or more injured persons is
$40,000

Question 25

Part I Will NOT Pay For:
Part I - Bodily Injury to Others

Answer 25

-Injures to the driver or guest occupants in the insured’s auto
-Accidents occurring outside of Massachusetts or in places where the public has no right of access
*Closed highway ramp
*Private property
*Authorized vehicles only
-Injuries to any employee legally entitles to Workers’ Compensation benefits