CAIA Policy Coverage and Exclusions 2

Question 1

A claimant drives a borrowed vehicle and causes an accident. Under most personal auto policies, which coverage applies FIRST?

Accepted Answer

The vehicle owner's policy as primary

Answer

The borrower's own policy as primary

Answer

Both policies share equally as co-primary

Answer

Neither policy applies to borrowed vehicles

Question 2

Which of the following losses is typically EXCLUDED under a standard comprehensive auto coverage?

Accepted Answer

Mechanical breakdown of the engine

Answer

Hail damage to the vehicle roof

Answer

Theft of the entire vehicle

Answer

Flood damage to the interior

Question 3

An insured intentionally rams another car during a road rage incident. How does the policy respond to the damage claim?

Accepted Answer

The intentional act exclusion bars all coverage

Answer

Liability coverage pays because the other driver is a third party

Answer

Collision coverage pays the insured's vehicle damage

Answer

Comprehensive covers intentional acts against others

Question 4

Under a Personal Auto Policy (PAP), which statement about the 'named insured' is correct?

Accepted Answer

The named insured and spouse residing in the household

Answer

Only the person listed first on the declarations page

Answer

All licensed drivers in the household automatically

Answer

Any family member who drives the insured vehicle

Question 5

A delivery driver uses a personal auto policy vehicle for commercial pizza delivery. The insurer denies a collision claim. What is the most likely basis?

Accepted Answer

The vehicle was used for business purposes excluded under the PAP

Answer

The driver did not have a commercial license

Answer

Collision coverage does not apply while moving

Answer

The deductible was not met

Question 6

What does the 'other than collision' coverage in an auto policy cover?

Accepted Answer

Losses from fire, theft, vandalism, and weather events

Answer

Accidents involving another vehicle only

Answer

Medical payments to occupants after any accident

Answer

Property damage liability for third parties

Question 7

An insured's vehicle is damaged when an uninsured driver runs a red light. Which PAP coverage provides direct payment to the insured for their vehicle damage?

Accepted Answer

Uninsured Motorist Property Damage (UMPD)

Answer

Medical Payments coverage

Answer

Comprehensive coverage

Answer

Bodily Injury Liability