INSURING PERSONAL AUTO EXPOSURES CISR -

INSURING PERSONAL AUTO EXPOSURES CISR -

EXAM 100 QUESTIONS AND CORRECT DETAILED ANSWERS

(VERIFIED ANSWERS) |AGRADE

Depending on the circumstances, a passenger injured in an automobile accident

may be able to recover under all of the following coverages EXCEPT:

• medical payments.
• collision.
• uninsured motorist.

D) liability. - ANSWER- The correct answer was - B: collision.

Explanation:

Collision coverage provides only physical damage coverage for the insured's vehicle. It protects against damage done to the covered auto by impact with another vehicle or an object. It also covers damage sustained if the car rolls over (is upset).

The commercial auto policy offers physical damage coverage. One of the coverages is comprehensive. All of the following causes of loss are specifically

covered under comprehensive EXCEPT:

• freezing.
• earthquake .
• theft.

D) flood. - ANSWER- ...The correct answer was - A: freezing.

Explanation:

Freezing is specifically excluded under comprehensive coverage. Other exclusions include nuclear explosion, radiation, war, racing, wear and tear, and blowout, punctures, or other road damage to tires.

Which of the following damages is covered Under Part D-Coverage for Damage to the Insured's Auto?

• Mechanical breakdown not resulting from total theft.
• Wear and tear.
• Flood.

D) Freezing. - ANSWER- ...The correct answer was - C: Flood.

Explanation:

Part D-Coverage for Damage to the Insured's Auto provides other than collision (comprehensive) coverage and collision coverage. Other than collision coverage protects against almost all accidental damage, with the exception of coverage provided under collision, including fire, theft, explosion, earthquake, windstorm, missiles, falling objects, hail, water, flood, vandalism and malicious mischief, riot and civil commotion, glass breakage, and collision with birds or animals, wild or domestic. Damage from wear and tear, freezing and mechanical breakdown, and electrical breakdown (unless resulting from total theft of the auto) are excluded.Road damage to tires is also excluded.

Bobby, age 16, borrows his parents' car without their permission and gets into an accident. Which of the following statements about coverage under the parents' personal auto policy is CORRECT?

• Bobby is not covered for this accident because he used the car without

permission.

• Bobby is covered by his parents' policy because he is included in the definition

of named insured.

• Bobby is not covered because it was not his car.
• Bobby is covered by his parents' policy because he is a family member. -

ANSWER- ...The correct answer was - D: Bobby is covered by his parents'

policy because he is a family member.

Explanation:

Bobby is a family member and thus automatically covered under this family's PAP policy. Even though Bobby is using the car without permission, the exclusion pertaining to nonpermissive users does not apply to use of an owned auto by resident family members.

Under the medical payments coverage of a personal auto policy, the insurer pays for medical expenses and funeral services incurred within how many years from the date of an accident?

• Three.
• Five.
• One.

D) Two. - ANSWER- ...The correct answer was - A: Three.

Explanation:

Under Part B--Medical Payments Coverage, the insurer pays for reasonable expenses for necessary medical and funeral services incurred within three years from the date of an accident without regard to fault.

Jane insures her car with ABC Insurers. Which of the following individuals best describes a family member on Jane's policy?

• Robert, her ex-husband who moved out last week.
• Renee, a friend, who lives with Jane.
• Uncle Joe visiting from Texas.
• Maggie, her older sister, who lives with Jane. - ANSWER- ...The correct

answer was - D: Maggie, her older sister, who lives with Jane.

Explanation:

A family member is someone related to the named insured by blood, marriage, or adoption, who is a resident of the insured's household. Since Maggie is Jane's sister and is a resident of Jane's household, she would best fit the description of a family member under the policy.

Howard bought a car yesterday for his youngest son to drive to school and his job.

Under Howard's automobile policy, this car is considered a (n):

• uninsured automobile.
• temporary substitute automobile.
• owned automobile.

D) nonowned automobile. - ANSWER- ...The correct answer was - C: owned

automobile.

Explanation:

A newly acquired automobile is an owned automobile that must be an eligible vehicle. For any coverage except coverage for damage to your auto, this car will have the broadest coverage provided for any of the cars listed on the declarations until it is added to the policy. It must be insured within 14 days after the insured becomes the owner.

If the insured hits a deer while driving his own vehicle, which part of the personal auto policy will pay to repair the vehicle?

• Medical payments.
• Other than collision.

• Liability.
• Collision.
• Other than collision.

Part D - Coverage for Damage to the Insureds Auto provides 2 major types of

coverages: collision and Other than Collision coverage. Other than Collision

(comprehensive) coverage includes fire, theft, explosion, earthquake, windstorm, missiles, falling objects, hail, water, flood, vandalism & malicious mischief, riot & civil commotion, glass breakage, and collision with birds or animals that are wild or domestic.

Medical Payments Coverage is Part B in the personal automobiles policy. All of the following statements about medical payments are correct EXCEPT

a.) Part B covers reasonable expenses for services incurred within 5 years of the date of injury b.) coverage provided for the named insured if hit by a car while walking along the road c.) no coverage is available if the vehicle is being used as a residence d.) coverage is available if an injury occurs while getting into or out of a vehicle a.) Part B covers reasonable expenses for services incurred within 5 years of the date of injury

Part B covers reasonable and necessary medical and funeral expenses incurred within the first 3 years of the date of the injury.

All of the following vehicles can be insured under an unendorsed personal auto policy EXCEPT

a.) rental cars b.) newly acquired vehicles c.) motorcycles d.) trailers hitched to the insured vehicle c.) motorcycles

The miscellaneous type vehicle endorsement to the PAP covers motorcycles, motor homes, ATVs, dune buggies & other types of vehicles that are otherwise excluded by the policy.