Chapter 9 - Personal Auto Insurance
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- 1.Which of the following would be eligible for a Personal Auto policy?
- A.
McGuffin's Linen Service Company
- B.
Nancy Hardwicke
- C.
John and Suzette Oglesby, a married couple who live together
- D.
Don Wilson's 16-wheel big rig, which he owns
- 2.Ann's auto was damaged when it was struck by another car whose driver ran a stop sign. Which part of Ann's Personal Auto policy will cover the damage to her car?
- A.
Collision Coverage of Part DCoverage for Damage to Your Auto
- B.
Other Than Collision Coverage of Part DCoverage for Damage to Your Auto
- C.
Part ALiability Coverage
- D.
Part CUninsured Motorists Coverage
- 3.Which of the following autos owned by the named insured could be covered under a Personal Auto policy?
- A.
Pickup truck used on the insured's farm
- B.
Station wagon
- C.
Chevrolet sedan
- D.
Panel truck used to make deliveries for the insured's small manufacturing operation
- 4.If the named insured acquires a new car that does not replace a previously insured auto, what must the insured do to obtain liability coverage for the auto under her Personal Auto policy from the day it is acquired?
- A.
Nothing coverage is automatic
- B.
Submit a new policy application
- C.
Notify the company of the new car within 14 days of the purchase
- D.
Notify the company immediately; no coverage applies until the company is notified
- 5.Which of the following could be covered under the Liability section of a named insured's Personal Auto policy?
- A.
Injuries a named insured receives in a car accident
- B.
Injuries to a person struck by the named insured's auto
- C.
Injuries to a member of the named insured's family who was a passenger in the named insured's car when it overturned
- D.
Damage to personal property being transported when the car was involved in a collision
- 6.
- A.
Edna, Mr. Stump's wife, who resides with him
- B.
Mr. Stump's 16-year-old son, who lives at home
- C.
A neighbor who borrows Stump's car with Stump's permission
- D.
A group of teenagers who steal Mr. Stump's car from a parking lot and take it for a joy ride
- 7.Medical Payments coverage provides protection for all of the following except which one?
- A.
The insured
- B.
The insured's family
- C.
Passengers in the insured's vehicle
- D.
Occupants of a vehicle that is struck by the insured's vehicle
- 8.Which of the following could be considered an uninsured motorist?
- A.
Motorist who has less insurance than required by the state's financial responsibility law
- B.
Driver whose insurance company is insolvent
- C.
Motorist who has enough insurance to meet the state's financial responsibility law, but not enough to fully reimburse the insured for his or her injuries
- D.
Unidentified hit-and-run driver
- 9.Which of the following losses could be paid under Uninsured Motorists coverage? (Assume that there are no endorsements attached to the policy.)
- A.
Tabb, the insured, drives the wrong way down a one-way street and collides with another car. Tabb is seriously injured. The driver of the other car has no Liability insurance.
- B.
Barb, the insured, is hit by a drunk driver who is uninsured. She is not injured, but her car is totaled.
- C.
Leslie, the insured, is injured when she is struck by a car that runs a red light. The driver has no Liability insurance.
- D.
Bernard, the insured, is on his way to work when his vehicle is rear-ended by a car that was following too closely. Bernard suffers a back injury. The driver of the other car carries the minimum amount of insurance required in the state.
- 10.Which of the following losses would be paid under the Other Than Collision coverage of the Personal Auto policy?
- A.
A radiator develops a leak after the car has 100,000 miles on it.
- B.
The insured's car is stolen and never recovered.
- C.
The insured's auto skids on icy pavement and flips over.
- D.
The insured's auto is damaged when it is hit by another car that runs a red light.
- 11.An Assigned Risk Plan covers which of the following?
- A.
Insureds who are uninsurable in the standard market
- B.
Insureds who do not own their own autos
- C.
Insurance companies for losses involving government-owned automobiles
- D.
Insureds who cannot afford standard rates
- 12.Which of the following losses would be excluded under Part D of a Personal Auto policy?
- A.
When the insured fails to pay his taxes, the IRS confiscates and sells his car.
- B.
The insured's car is stolen on a cold winter day. The thieves run down the battery, and then abandon the car in a field. Before the car is discovered, the battery freezes and is ruined.
- C.
The insured's cell phone that she sometimes carries in her car is damaged in a collision.
- D.
Custom carpeting that the named insured added to his van is damaged in a flood.
- 13.Mary's Liability coverage limits are 50/100/50. A driver who was injured in an accident caused by Mary obtains a $75,000 judgment against her. Postjudgment interest of $5,000 accrues between the time the judgment was entered by the court and the time the insurer pays. What is the total amount Mary's insurance company will pay for this loss?
- A.
$50,000
- B.
$55,000
- C.
$75,000
- D.
$80,000
- 14.Vanessa's Liability coverage has split limits of 100/300/50. How much coverage does Vanessa have for property damage liability?
- A.
$5,000
- B.
$50,000
- C.
$100,000
- D.
$300,000
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