CAIA Policy Coverage and Exclusions 5

Question 1

A rideshare driver is logged into the app but has not yet accepted a ride request when an accident occurs. Which coverage situation is most likely?

Accepted Answer

A coverage gap may exist unless a rideshare endorsement or TNC policy is in place

Answer

During Phase 1 (app on, no ride accepted), many personal auto policies exclude coverage, creating a gap unless a rideshare endorsement is added.

Question 2

Which term describes the maximum dollar amount an insurer will pay per accident for property damage liability?

Accepted Answer

Per-accident property damage limit

Answer

The per-accident property damage limit caps the insurer's payment for all property damage arising from a single covered accident.

Question 3

An insured's vehicle is struck by a hit-and-run driver who fled the scene. Which coverage typically responds?

Accepted Answer

Uninsured motorist coverage, treated as an uninsured driver

Answer

Most states treat hit-and-run drivers as uninsured, allowing the victim to claim under their uninsured motorist coverage.

Question 4

The insurer settles a claim and then pursues the at-fault third party for reimbursement. This right is called:

Accepted Answer

Subrogation

Answer

Subrogation is the insurer's legal right to recover claim payments from the negligent third party after compensating the insured.

Question 5

Under a split-limit liability policy expressed as 100/300/100, what does the middle number represent?

Accepted Answer

Maximum per-accident bodily injury payment for all persons

Answer

In a split-limit policy, the middle figure ($300,000) is the per-accident cap for total bodily injury payments to all claimants.

(CAIA) Certified Automotive Insurance Adjuster Practice Test