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AUTO INSURANCE EXAM
Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -60 Questions and Answers
-Format: Multiple-choice / Flashcard
Question 1: Motor Carrier Act of 1980
Answer:
MSC-90 must be attached to all motor carrier policies under its jurisdiction. This endorsement ensures that motor carriers comply with the federally mandated coverage of public liability.Question 2: What losses are excluded from coverage in the liability section of the personal auto policy?
Answer:
ntentional 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
Question 3: Physical Damage Coverage (Section III)
Answer:
Explains coverage for damage done to the insured's property including any covered autos. Physical damage coverage is personalized t each commercial auto coverage form. For example, garage coverage physical damadge can cover damage to autos in the care or custody of the insured business Question 4: The lesser of the actual cash value of the vehicle or the amount needed to repair or replace the vehicle
Answer:
What type of auto coverage will apply in a hit-and-run accident where the driver cannot be identified?
Question 5: Part A: Liability
Answer:
Rental reimbursement endorsement is available only if an auto policy has what type of coverage?Question 6: Garage Coverage form does NOT cover personal injury or loss of wages from those injuries but it would be covered by a Commercial Liability policy
Answer:
An insured involved in an auto accident in another state. The state has a financial responsibility law that specifies limits of liability higher that the limits shown in the Declarations Question 7: If an auto policy has split limits of 30/50/25, how much will the policy pay for the property damage in a single accident?
Answer:
$25,000
Question 8: What are 2 parts of the garage liability coverage?
Answer:
Garage Operations -Covered Autos,and garage operations other than covered autos
Question 9: What does Uninsured motorist coverage apply
Answer:
When the other party is legally liable but has no insurance
Question 10: OWned Autos
Answer:
Eligible vehicles titles by the insured or aquiered during the policy period Question 11: PAP contains insuring agreement, exclusions and limits of liability
Answer:
Legal liability, injury to the insured or members of the insureds family, damage to or loss of the auto itself Question 12: Subrogation rights do not apply to the physical damage coverage if the damage is caused by a person using the auto with a reasonable belief that they were entitled to do so
Answer:
Uninsured motorist coverage acts as an excess over the at-fault motorist coverage. The policy will not pay more than the limits of liability.
Question 13: A vehicle acquired by the insured during the policy period
Answer:
What is the limit of liability in Part D: Coverage for damage to your auto?
Question 14: 1. no insurance or liability bond
- insurance less than what is required by the financial responsibility laws
- A hit and run accident where the driver cannot be identified
- the insurer denies coverage or becomes insolvent
Answer:
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?Question 15: To perform work on a customer's car, a mechanic in an auto shop had to put the vehicle on a service hoist. The hoist collapsed, damaging the vehicle and injuring the mechanic.In regard to the garage coverage form,
Answer:
Vehicles owned by the government are specifically excluded as uninsured Question 16: What types of losses are indicated by the split limits in an auto insurance policy?
Answer:
Bodily injury per person, bodily injury per accident and property damage per accident
Question 17: Split limit coverage uses 3 dollar amounts
Answer:
Bodily injury per person/ALL bodily injury/property damage per accident Question 18: Underinsured Motorist (UIM) coverage will pay the difference between which 2 limits?
Answer:
The insured's UIM limits and the at-fault driver's insurance bodily injury limits
Question 19: Liability coverage protects the insured against loss arising from legal liability when an aouto that the insured owns, operates or maintains is involved in an accident
Answer:
*Bodily injury and Property damage due to an accident *Defense cost as long as the policy covers a particular loss *Costs for settling or defending the insured as deemed appropriate
Question 20: Extended Nonowned coverage endo. in PAP
Answer:
Pays for liability and medical payments
Question 21: othe than collision Coverage
Answer:
When does the underinsured motorist coverage apply?
Question 22: mobile equipment
Answer:
What are the 4 categories of uninsured motor vehicles?
Question 23: What do the numerical symbols represent in auto policies?
Answer:
In Personal Auto Policy, to what geographical region does the out-of-state coverage apply?
Question 24: Collision
Answer:
the upset or impact of a covered vehicle or non-owned auto with another vehicle or object
Question 25: Underinsured Motorist (PAP)
Answer:
UIM coverage will pay the difference between the insured's UIM limits and the at fault drivers bodily injury limits Question 26: If an insured is injured while driving his own car, what coverage in his personal auto policy will pay for the loss?
Answer:
Part B Medical Payments
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