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Auto Insurance

Terms in this set (36)

appraisal
a professional assessment to determine extent of damage
financial responsibility
proof that one can pay for damages caused, often fulfilled by purchasing insurance
Lessor
a person granting a lease of a motor vehicle
livery
transporting of people or things for hire (taxi)
mutually exclusive
when something cannot occur simultaneously with something else
private passanger vehicle
an automobile used for private needs rather than for business use
What are the parts of a personal auto policy? (PAP)
A- liability coverage
B- medical payments coverage
C-uninsured motorist coverage
D- coverage for damage to your auto
E- duties after an accident or loss
F- general provisions
PAP must provide protection for losses under what circumstances?
legal liability, injury to the insured or members of the insureds family, damage to or loss of the auto itself
Who is an insured?
named insured and family members, any other person while occupying a covered vehicle, and any person entitled to recover damages because of injuries to one of the above
How is the amount paid by UIM coverage figured?
insured's UIM limits - drivers BI limits = amount paid by UIM
What are the parts of a Personal Auto Policy?
A- liability
B- medical payments
C- uninsured motorist
D- coverage for damage to your auto
E- duties after loss
F- general provisions
What does liability coverage cover in PAP?
bodily injury and property damage, defense costs, and cost resulting from defense of insured
Exclusions of liability coverage for PAP policies?
...
What does the term "you" refer to in a personal auto policy?
NI showed on dec pay and spouse if resident of same house
If an auto policy has liability limits of 40/60/20, what would be the equivalent combined single limit?
$80,000 - combined total of coverage for bodily injury and property damage
What Personal Auto coverage would pay for damages to a covered auto caused by a collision with a deer?
Other Than Collision (Comprehensive)
In personal auto policy, to what geographical region does the out-of-state coverage apply?
Any U.S. state or territory, as well as Canada
Underinsured Motorist (UIM) coverage will pay the difference between which two limits?
The insureds UIM limits and the at-fault drivers insurance bodily unjust limits
If an auto policy has split limits of 30/50/25, how much will the policy pay for property damage in a single accident?
$25,000
When does the Underinsured Motorist coverage apply?
When the motorist is at fault in an accident, but the limits of his/her auto insurance are not sufficient to cover the bodily injury to another motorist
What losses are excluded from coverage in the liability section of the Personal Auto Policy?
Intentional injury or damage, damage to property owned or transported by the insured, use of a vehicle as a public conveyance, or use of a vehicle without permission. (Please review the text for a complete list of exclusions.)
What would be considered a newly acquired auto?
A vehicle acquired by the insured during the policy period
What type of auto coverage will apply in a hit and run accident where the driver cannot be identified?
uninsured motorist
What Personal Auto Coverage would pay for the insured's travel expenses and loss of earnings while the insured is involved in the settlement process of a covered loss?
Part A: Liability
What is a covered auto?
A vehicle shown in the policy declarations
What is the limit of liability in Part D: coverage for damage to your auto?
The lesser of the actual cash value of the vehicle or the amount needed to repair or replace the vehicle
If an insured is injured while driving his own car, what coverage in his personal auto policy will pay for the loss?
Part B: Medical Payments
What type of losses are indicated by the split limits in an auto insurance policy?
bodily injury per person, bodily injury per accident, and property damage per accident
What is a combined limit in an auto insurance policy?
The maximum amount the insurer will pay on a covered loss. BI + PD
How does the Auto Medical Payments Coverage endorsement modify the auto policy?
It adds medical payment coverage to a commercial auto policy
When does Uninsured Motorist coverage apply?
When the other party is legally liable but has no insurance
Who is considered insured under Part A: Liability of a personal auto policy?
The vehicle owner or his/her family member, or any person using the covered auto with permission
What coverages are available in the physical damage section of the personal auto policy?
collision and other than collision coverages
What are the 4 categories of uninsured motor vehicles?
1) no insurance or liability bond
2) insurance is less than what's required by the financial responsibility laws
3) a hit and run accident where the driver cannot be identified
4) the insurer denies coverage or becomes insolvent
Coverage for medical payments under a Personal Auto Policy applies to expenses following a covered accident that are incurred and services rendered within what time period?
3 years
How much will a physical damage policy pay for transportation expenses due to a theft of a covered auto?
The policy will pay up to $20 per day, up to a maximum of $600, for transportation expenses incurred by the insured
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