Question 1

What best describes Part A of the Personal Auto Policy?

Accepted Answer

Part A of the Personal Auto Policy is best described as liability coverage for bodily injury and property damage for which an insured becomes legally responsible. This definition matches how the concept is tested on standard P&C licensing exams.

Question 2

What best describes Part B of the Personal Auto Policy?

Accepted Answer

Part B of the Personal Auto Policy is best described as medical payments coverage. This definition matches how the concept is tested on standard P&C licensing exams.

Question 3

What best describes Part C of the Personal Auto Policy?

Accepted Answer

Part C of the Personal Auto Policy is best described as uninsured motorists coverage. This definition matches how the concept is tested on standard P&C licensing exams.

Question 4

What best describes Part D of the Personal Auto Policy?

Accepted Answer

Part D of the Personal Auto Policy is best described as coverage for damage to your auto. This definition matches how the concept is tested on standard P&C licensing exams.

Question 5

What best describes Collision coverage?

Accepted Answer

Collision coverage is best described as coverage for damage to your covered auto caused by collision with another object or by upset. This definition matches how the concept is tested on standard P&C licensing exams.

Question 6

What best describes Other Than Collision coverage?

Accepted Answer

Other Than Collision coverage is best described as coverage for losses such as theft, vandalism, falling objects, fire, and contact with an animal. This definition matches how the concept is tested on standard P&C licensing exams.

Question 7

What best describes Bodily injury liability coverage?

Accepted Answer

Bodily injury liability coverage is best described as coverage for injuries the insured legally causes to others. This definition matches how the concept is tested on standard P&C licensing exams.

Question 8

What best describes Property damage liability coverage?

Accepted Answer

Property damage liability coverage is best described as coverage for damage the insured legally causes to property of others. This definition matches how the concept is tested on standard P&C licensing exams.

Question 9

What best describes Medical payments coverage?

Accepted Answer

Medical payments coverage is best described as coverage for reasonable medical expenses for covered persons injured in an auto accident regardless of fault, subject to policy terms. This definition matches how the concept is tested on standard P&C licensing exams.

Question 10

What best describes Uninsured motorist coverage?

Accepted Answer

Uninsured motorist coverage is best described as coverage for bodily injury caused by a driver who has no liability insurance. This definition matches how the concept is tested on standard P&C licensing exams.

Question 11

What best describes Underinsured motorist coverage?

Accepted Answer

Underinsured motorist coverage is best described as coverage that may apply when the at-fault driver's liability limits are insufficient to fully pay the insured's bodily injury damages. This definition matches how the concept is tested on standard P&C licensing exams.

Question 12

What best describes Personal Injury Protection?

Accepted Answer

Personal Injury Protection is best described as coverage commonly associated with no-fault systems that may pay medical expenses and other economic losses such as lost wages. This definition matches how the concept is tested on standard P&C licensing exams.

Question 13

What best describes Split limits?

Accepted Answer

Split limits is best described as liability limits stated separately as bodily injury per person, bodily injury per accident, and property damage. This definition matches how the concept is tested on standard P&C licensing exams.

Question 14

What best describes A deductible under Part D?

Accepted Answer

A deductible under Part D is best described as the amount of covered physical damage loss the insured retains before the insurer pays the remainder, subject to limits. This definition matches how the concept is tested on standard P&C licensing exams.

Question 15

What best describes A covered auto under the PAP?

Accepted Answer

A covered auto under the PAP is best described as a vehicle that meets the policy's ownership and use requirements and qualifies for coverage under the form. This definition matches how the concept is tested on standard P&C licensing exams.

Question 16

What best describes A permissive user?

Accepted Answer

A permissive user is best described as a person using the covered auto with a reasonable belief that they are entitled to do so, subject to policy terms. This definition matches how the concept is tested on standard P&C licensing exams.

Question 17

What best describes Comprehensive coverage?

Accepted Answer

Comprehensive coverage is best described as another name commonly used for other than collision coverage. This definition matches how the concept is tested on standard P&C licensing exams.

Question 18

What best describes A total loss settlement under Part D?

Accepted Answer

A total loss settlement under Part D is best described as payment based on the covered vehicle's actual cash value at the time of loss, minus any applicable deductible. This definition matches how the concept is tested on standard P&C licensing exams.

Question 19

The insured rear-ends another car and is legally liable for the other driver's injuries. Which PAP part applies first?

Accepted Answer

Part A of the PAP provides liability coverage for bodily injury and property damage the insured legally causes to others. This claim is not a medical payments or physical damage claim on the insured's own car.

Question 20

A passenger in the insured vehicle needs prompt medical treatment after an accident, regardless of who caused it. Which PAP part is designed to address that expense?

Accepted Answer

Part B provides medical payments coverage for covered persons injured in an auto accident, subject to policy terms. It can apply without regard to fault.

Question 21

An uninsured driver runs a red light and injures the insured. Which PAP part is most directly designed for that bodily injury claim?

Accepted Answer

Part C addresses bodily injury caused by an uninsured motorist. It is separate from liability coverage for injury the insured causes to others.

Question 22

The insured backs into a pole and damages their own car. Which PAP part is most directly involved?

Accepted Answer

Damage to the insured's own auto is handled under Part D, subject to the selected coverage and deductible. The accident is not a liability claim against the insured by another person.

Question 23

A tree branch falls on the insured's parked car during a storm. Which physical damage coverage is most appropriate?

Accepted Answer

Falling objects and weather-related losses are typical Other Than Collision losses. Collision coverage applies when the covered auto strikes another object or overturns.

Question 24

The insured hits a guardrail while swerving to avoid traffic. Which physical damage coverage is most appropriate?

Accepted Answer

Collision coverage addresses damage caused by impact with another object or upset. Hitting a guardrail falls within that description.

Question 25

A deer runs into the insured vehicle on the highway. Which physical damage coverage typically applies?

Accepted Answer

Contact with an animal is usually handled under Other Than Collision coverage. Even though the car struck something, animal contact is treated as a comprehensive-type loss.

Question 26

The insured's car is stolen from a parking lot. Which coverage generally responds to the physical loss?

Accepted Answer

Theft is a classic Other Than Collision loss. Liability and medical payments cover different types of exposure entirely.

Question 27

The insured breaks a windshield when a rock flies up from the road. Which physical damage coverage is most directly involved?

Accepted Answer

Flying objects and glass breakage are generally treated as Other Than Collision losses. They do not arise from the insured striking another object in the collision sense.

Question 28

The insured causes damage to another driver's fence. Which auto coverage most directly addresses that damage?

Accepted Answer

Property damage liability covers damage the insured legally causes to property of others. Damage to the insured's own vehicle would be handled separately under Part D.

Question 29

The insured causes bodily injury to another pedestrian while driving. Which auto coverage most directly addresses that claim?

Accepted Answer

Bodily injury liability coverage applies when the insured is legally responsible for injury to another person. Physical damage coverages do not pay the other person's injury claim.

Question 30

The at-fault driver's liability insurance is not enough to pay all of the insured's bodily injury damages. Which coverage may help fill that gap?

Accepted Answer

Underinsured motorist coverage may apply when the negligent driver's liability limits are inadequate for the insured's bodily injury damages. It is distinct from damage coverage on the insured's own car.

Question 31

A state uses a no-fault system and requires coverage that can pay medical costs and lost wages after an accident. Which coverage best matches that description?

Accepted Answer

PIP is commonly associated with no-fault systems and can pay medical expenses and related economic losses such as lost wages. It is not liability or property damage coverage.

Question 32

A friend borrows the insured's car with permission and causes an accident. Which concept best explains why coverage may still apply under the PAP?

Accepted Answer

The PAP commonly extends coverage to certain permissive users, subject to the policy terms and exclusions. Permission is an important part of that analysis.

Question 33

Which coverage would most likely pay for medical expenses for the insured and passengers after an accident, regardless of who was at fault?

Accepted Answer

Medical payments coverage is designed for reasonable medical expenses of covered persons after an auto accident, regardless of fault, subject to policy terms. It is not the same as liability or collision coverage.

Question 34

The insured asks what the 100/300/50 limits on a PAP mean. Which answer is correct?

Accepted Answer

Split limits on an auto liability policy are commonly stated as bodily injury per person, bodily injury per accident, and property damage. That format is heavily tested on licensing exams.

Question 35

A hailstorm dents the insured's car while it is parked in the driveway. Which coverage most directly applies?

Accepted Answer

Hail is a weather-related peril typically covered under Other Than Collision coverage. Collision coverage applies when the insured vehicle collides with another object or overturns.

Question 36

The insured overturns the car on an icy road without striking another vehicle. Which physical damage coverage is most directly involved?

Accepted Answer

Collision coverage includes upset as well as impact with another object. Because the car overturned, the loss falls under collision rather than Other Than Collision.

Question 37

A vandal scratches the insured's car with a key. Which physical damage coverage is most appropriate?

Accepted Answer

Vandalism is typically handled under Other Than Collision coverage. It is not a collision loss because there is no impact or upset involving the covered auto.

Question 38

The insured's vehicle is a total loss after a covered accident. Under Part D, which value basis is generally used to settle the claim before the deductible is applied?

Accepted Answer

Part D commonly settles a total loss based on the vehicle's actual cash value at the time of loss. Deductibles then reduce the amount payable, subject to policy terms.

Question 39

Which coverage is most directly intended to protect the insured from bodily injury caused by a driver who carries no insurance at all?

Accepted Answer

Uninsured motorist coverage is intended for bodily injury caused by an uninsured at-fault driver. It is different from collision coverage, which pays for damage to the insured vehicle.

Question 40

The insured asks which PAP part covers damage to their own vehicle from theft, fire, vandalism, collision, or other physical loss. Which answer is correct?

Accepted Answer

Part D is the section of the PAP that covers damage to your auto, subject to the type of physical damage coverage purchased. The other parts address liability, medical payments, and uninsured motorists.

Question 41

A PAP has 100/300/50 split limits. The insured causes an accident injuring two people with damages of $80,000 and $150,000 and causing $30,000 in property damage. How much will the insurer pay in total?

Accepted Answer

The insurer pays $80,000 for the first injured person and $100,000 for the second because of the per person bodily injury limit, for $180,000 total bodily injury. Property damage of $30,000 is within the $50,000 limit, so the total payment is $210,000.

Question 42

A PAP has 50/100/25 split limits. One accident injures three people with damages of $30,000, $50,000, and $70,000, and causes $10,000 in property damage. How much will the insurer pay in total?

Accepted Answer

The bodily injury payment is capped at $30,000, $50,000, and $20,000 because the per accident bodily injury limit is $100,000. Adding the $10,000 property damage payment produces a total of $110,000.

Question 43

A PAP has 100/300/50 split limits. The insured causes an accident injuring one person for $250,000 and damaging a building for $40,000. How much will the insurer pay in total?

Accepted Answer

Bodily injury to one person is capped at the $100,000 per person limit. Property damage of $40,000 is within the $50,000 property damage limit, so total payment is $140,000.

Question 44

The insured has collision coverage with a $500 deductible. The insured's car sustains $4,200 in covered collision damage. How much will the insurer pay?

Accepted Answer

Collision coverage pays the covered loss minus the applicable deductible. Subtracting the $500 deductible from the $4,200 loss results in a payment of $3,700.

Question 45

The insured has Other Than Collision coverage with a $250 deductible. A hail loss causes $1,800 in covered damage. How much will the insurer pay?

Accepted Answer

Other Than Collision coverage pays the covered loss minus the applicable deductible. $1,800 minus $250 equals a payment of $1,550.

Question 46

A covered auto is totaled. Its actual cash value is $16,000 and the collision deductible is $1,000. Assuming no other adjustments, how much is payable under Part D?

Accepted Answer

A total loss settlement under Part D is generally based on actual cash value at the time of loss minus the deductible. $16,000 minus $1,000 equals $15,000.

Question 47

A PAP has 25/50/25 split limits. The insured causes injuries to two people with damages of $20,000 and $40,000 plus $15,000 in property damage. How much will the insurer pay in total?

Accepted Answer

The insurer pays $20,000 for the first person and $25,000 for the second because of the per person limit, for $45,000 bodily injury total. Adding $15,000 property damage brings the total to $60,000.

Question 48

An uninsured driver injures the insured and causes $90,000 in bodily injury damages. The insured has UM limits of $50,000 per person. Assuming the claim is otherwise covered, how much can the UM insurer pay for bodily injury to the insured?

Accepted Answer

Uninsured motorist bodily injury coverage is limited by the selected UM limit. Even though damages are $90,000, the per person limit caps payment at $50,000.

Question 49

A PAP has 100/300/50 split limits. One accident injures three people with damages of $60,000, $120,000, and $120,000, plus $40,000 in property damage. How much will the insurer pay in total?

Accepted Answer

The bodily injury payment is $60,000, $100,000, and $100,000, for $260,000 total, which is within the $300,000 per accident bodily injury cap. Adding $40,000 property damage produces a total payment of $300,000.

Question 50

The insured has collision and Other Than Collision coverage, each with a $500 deductible. A collision causes $2,000 in damage, and a separate hail loss later causes $1,500 in damage. How much will the insurer pay in total for the two covered losses?

Accepted Answer

Each covered loss is adjusted separately under the applicable coverage and deductible. The collision loss pays $1,500 and the hail loss pays $1,000, for a total of $2,500.

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