Claims Adjuster Test Personal and Commercial Auto Questions and Answers

Question 1

In a standard Business Auto Policy (BAP), which coverage symbol provides the broadest liability protection by applying to 'any auto'?

Accepted Answer

Symbol 1 (Any Auto)

Answer

Symbol 7 (Specifically Described Autos)

Answer

Symbol 2 (Owned Autos Only)

Answer

Symbol 8 (Hired Autos Only)

Question 2

An insured's car is covered by a standard Personal Auto Policy with both Collision and Other Than Collision coverage. While parked on a rural road, the vehicle is significantly damaged when a large deer runs into its side. Which coverage will pay for the repairs?

Accepted Answer

Other Than Collision Coverage

Answer

Collision Coverage

Answer

Property Damage Liability

Answer

Uninsured Motorist Property Damage

Question 3

A Personal Auto Policy's Medical Payments coverage (Part B) is designed to cover reasonable and necessary expenses for an insured after an accident. Which of the following would NOT be covered by this part of the policy?

Accepted Answer

Lost wages while the insured is unable to work.

Answer

Ambulance fees to transport the insured to the hospital.

Answer

Dental procedures required due to injuries from the accident.

Answer

Funeral expenses for a passenger.

Question 4

An employee uses their personal vehicle to make a bank deposit for their employer. During the trip, the employee negligently causes an accident, injuring another driver. The employee has a personal auto policy, and the employer has a Business Auto Policy with Hired and Non-Owned Auto liability coverage. How will the policies respond to the third-party injury claim?

Accepted Answer

The employee's personal auto policy is primary, and the employer's policy is excess.

Answer

The employer's policy is primary because the accident occurred during business operations.

Answer

Both policies will share the loss on a pro-rata basis.

Answer

Only the employer's policy will respond as it was a work-related errand.

Question 5

A Personal Auto Policy has split liability limits of 25/50/10. In a single at-fault accident, the insured causes $8,000 of damage to one person's car and $4,000 of damage to another person's car. What is the maximum amount the insured's policy will pay for the total property damage?

Accepted Answer

$10,000

Answer

$25,000

Answer

$50,000

Answer

$12,000

Question 6

A customer's vehicle is damaged by a fire that starts overnight inside a mechanic's service garage. The garage has a policy that includes both Garage Liability and Garagekeepers coverage. Which coverage is designed to respond to the damage to the customer's vehicle?

Accepted Answer

Garagekeepers Coverage

Answer

Garage Liability Coverage

Answer

Commercial Property Coverage

Answer

Completed Operations Liability