Practice Test Geeks(EXAMFX) Exam FX Insurance Practice Test
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Personal Auto Policy Details Flashcards

7 cards from real EXAMFX practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Personal Auto Policy Details flashcards as text

  1. Under a PAP, which of the following is TRUE about Uninsured Motorist (UM) coverage?

    Answer: It covers bodily injury caused by a driver with no insurance

    UM coverage protects the insured for bodily injury damages caused by a driver who has no liability insurance.

  2. A PAP policyholder's 19-year-old child moves out and lives in a separate apartment. Is the child still covered under the parent's PAP?

    Answer: No, coverage ends when a child leaves the household

    PAP family member coverage requires the person to be a resident of the named insured's household; a child living independently is no longer a covered family member.

  3. Under the PAP Liability section, which duty is the insured required to perform after an accident?

    Answer: Cooperate with the insurer in its investigation

    The Conditions section of the PAP requires the insured to cooperate with the insurer's investigation, settlement, and defense of claims.

  4. Which PAP coverage pays for the insured's injuries regardless of who was at fault in the accident?

    Answer: Medical Payments

    Medical Payments coverage is no-fault, paying the insured's and passengers' reasonable medical expenses regardless of who caused the accident.

  5. A PAP policyholder rents a car while on vacation. Which part of their PAP may extend to cover the rental vehicle?

    Answer: Parts A, B, C, and D may all extend to a temporary substitute vehicle

    All four PAP coverage parts can extend to a non-owned vehicle used as a temporary substitute, including a rental car.

  6. The PAP's 'other-than-collision' (comprehensive) list of covered perils includes all of the following EXCEPT:

    Answer: Sliding off an icy road into a ditch

    Sliding off the road into a ditch is classified as a collision loss, not a comprehensive/OTC loss.

  7. Under the PAP, 'underinsured motorist' (UIM) coverage is triggered when:

    Answer: The at-fault driver's liability limits are lower than the insured's damages

    UIM coverage applies when the at-fault driver has insurance but their limits are insufficient to cover the insured's full damages.