Auto Insurance Policies Flashcards

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

Answer: Medical expenses and lost wages for the insured regardless of fault

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

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

Answer: 10 days

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

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

Answer: Underinsured motorist (UIM) coverage

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

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

Answer: Certificate verifying the driver carries required auto liability insurance

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

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

Answer: Hired auto endorsement

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

Which term describes the total loss settlement method where the insurer pays the actual cash value of the destroyed vehicle?

Answer: Actual cash value (ACV) settlement

When a vehicle is declared a total loss, insurers typically pay actual cash value (ACV), which is replacement cost minus depreciation.