DC Auto Insurance Policies 3

Question 1

Under DC's no-fault auto insurance framework, Personal Injury Protection (PIP) covers which of the following?

Accepted Answer

Medical expenses and lost wages for the insured regardless of fault

Answer

PIP covers medical expenses and lost wages for the insured and passengers, regardless of who caused the accident.

Question 2

An insured's auto policy lapses due to non-payment. What is the minimum advance notice an insurer must give before cancellation in DC?

Accepted Answer

10 days

Answer

DC requires at least 10 days' advance written notice before cancelling a policy for non-payment of premium.

Question 3

Which coverage pays for damages when the at-fault driver carries insufficient liability limits?

Accepted Answer

Underinsured motorist (UIM) coverage

Answer

Underinsured motorist (UIM) coverage pays when the at-fault driver's limits are inadequate to cover the insured's losses.

Question 4

What is the purpose of an SR-22 filing in DC?

Accepted Answer

Certificate verifying the driver carries required auto liability insurance

Answer

An SR-22 is a certificate filed by an insurer with the DMV confirming that a high-risk driver maintains required liability coverage.

Question 5

What type of auto endorsement would cover a rented vehicle used for business purposes?

Accepted Answer

Hired auto endorsement

Answer

A hired auto endorsement extends liability coverage to vehicles rented or leased by the insured for business use.

DC - District of Columbia Insurance Practice Test