Unit Eight Personal Auto Insurance

Question 1

What does the Personal auto policy(PAP) contain?

Answer 1

Property and liability coverages designed to insure an individual not a business

Question 2

What does the personal auto policy consist of?

Answer 2

• declarations page
• policy form

Question 3

What does the policy form contain?

Answer 3

Four separate coverages each with its own insurance agreement, exclusions, and conditions

Question 4

What are the four coverages available to the named insured?

Answer 4

Casualty
•Part A
•Part B
•Part C

Property
•Part D

Question 5

In personal auto what does part a cover?

Answer 5

Liability coverage

Question 6

In personal auto what does part b cover?

Answer 6

Medical payments coverage

Question 7

In personal auto what does part c cover?

Answer 7

Uninsured motorist coverage

Question 8

In personal auto what does part d cover?

Answer 8

Coverage for damage to your auto (physical damage)

Question 9

What does the definitions section do?

Answer 9

Provides terms to help clarify the intent of various coverages and conditions.

Question 10

What are the words you and your referred to in the declarations?

Answer 10

The named insured

Question 11

Those related by blood marriage or adoption and ward or foster children would be referred to as?

Answer 11

Family member

Question 12

What does bodily injury mean?

Answer 12

Bodily harm, sickness or disease, including resulting death

Question 13

What does property damage mean?

Answer 13

Destruction of or loss of use of tangible property

Question 14

What does covered auto typically include coverage to?

Answer 14

Any vehicle listed in the declarations newly acquired autos trailers or any auto or trailer temporally substituting

Question 15

What does the termination provision describe?

Answer 15

• insured may cancel anytime
• insurer must provide written notice a cancellation or nonrenewal

Question 16

What coverage territory is included in the policy territory listed on declarations page

Answer 16

The coverage territory includes the United States. It’s territories and possessions, Puerto Rico and Canada.

Question 17

What happens when an insurance company cancels or non-renews an auto insurance policy?

Answer 17

The insurance company must notify the insured of their eligibility for the assigned risk plan (AIP) in their state

Question 18

Why would someone require an assigned risk plan or automobile insurance plan?

Answer 18

Due to the driver having a poor driving record

Question 19

In most cases would do most drivers with the assigned risk plan only have issued?

Answer 19

Liability coverage

Question 20

Who is an insured?

Answer 20

• named insured and resident spouse
• resident family members
• any person who borrowed a covered with the permission of any insured

Question 21

What does supplementary payments included? Remember the acronym BAILED

Answer 21

Bonds
Aid
Interest
Loss of earnings
Expenses
Defense costs

Question 22

What are additional coverages?

Answer 22

Paid in addition to limit of liability

Question 23

What are the liability exclusions?

Answer 23

•intentional injury or damage
•injury to an insured
•damage to property owned or transported by an insured
• injury to an employee
• using the vehicle as a taxi
• use of the vehicle without permission
• vehicles, less than four wheels or not licensed for road use
• vehicles used for racing

Question 24

What is the minimum liability in Minnesota?

Answer 24

30/60/10

Question 25

What are the three limits of liability expressed as?

Answer 25

• split limits (separate limits for bodily injury or death in separate limits for property damage) • combined single limit • limits vary by state

Question 26

What is combined single limit cover?

Answer 26

Bodily injury and property damage

Question 27

What are split limits?

Answer 27

Usually expressed as a series of three numbers, for example100/300/50 Meaning 100K per person injury or death 300k per accident, bodily injury or death 50K per accident for property damage

Question 28

What are split limits?

Answer 28

Usually expressed as a series of three numbers, for example100/300/50 Meaning 100K per person injury or death 300k per accident, bodily injury or death 50K per accident for property damage

Question 29

Where are financial responsibility laws found?

Answer 29

Underpar a of the personal auto policy

Question 30

What do the financial responsibility laws require?

Answer 30

• state required proof of ability to pay for damages • usually mandate it auto liability insurance insurance

Question 31

What is the out-of-state coverage provision, modify?

Answer 31

The personal auto policy to meet other states financial responsibility requirements and other states laws concerning out of state drivers when the covered auto is being driven in that state

Question 32

Who is insured under part B coverage?

Answer 32

The named insured and any family member(s) Any other person while occupying the named insured covered auto(s)

Question 33

What does part B cover?

Answer 33

Reasonable expenses for necessary, medical and funeral services incurred within three years of the date of injury, regardless of fault

Question 34

What is the single limit of liability in Minnesota?

Answer 34

$20,000

Question 35

What does a single limit of liability apply to?

Answer 35

Each person injured

Question 36

What does other insurance do?

Answer 36

Prevent two insurance companies paying a duplicate payment

Question 37

Under part C uninsured motors coverage pays for?

Answer 37

The insured, family and guest passengers for bodily injury, and in some states property damage as a result of the accident

Question 38

What does subrogation mean?

Answer 38

Insurance company can sue the at fault party

Question 39

What does having uninsured motors coverage do

Answer 39

Pays when the asphalt driver has liability insurance. Liability is less than the insured, family or guest passengers, bodily injury.

Question 40

When is appraisal used?

Answer 40

When both parties (insurer and insured) agree, there is a valid claim, but cannot agree on the amount that should be paid

Question 41

When is arbitration used?

Answer 41

When the insurer refuses to honor and pay a claim filed by the insured

Question 42

Where would the newly acquired auto policy be listed?

Answer 42

The declarations page

Question 43

What does newly acquired auto coverage do

Answer 43

• automatically has broadcast coverage as current covered auto for 14 days • must be specifically added to policy within those 14 days

Question 44

What does part D coverage for damage to your auto pay for?

Answer 44

Direct an accidental loss to the named insured coverage auto or any non-owned auto against lost caused by collision or other than collision

Question 45

What does ERS stand for?

Answer 45

Emergency Roadside Service

Question 46

What does ERS stand for?

Answer 46

Emergency Roadside Service