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
Under the PAP, which condition requires the insured to notify police promptly after a hit-and-run accident in order to qualify for UM coverage?
Answer: Prompt notice requirement
Most PAP UM sections require the insured to report a hit-and-run accident to police as soon as practicable to qualify for uninsured motorist benefits.
A PAP is cancelled mid-term for non-payment of premium. How is the return premium calculated?
Answer: Short-rate basis, penalizing the insured with a less-than-pro-rata return
When the insured cancels mid-term, the return premium is calculated on a short-rate basis, which penalizes the insured; insurer-initiated cancellations use pro-rata.
Under the PAP, subrogation rights allow the insurer to:
Answer: Recover paid claim costs from the negligent third party
Subrogation gives the insurer the right to recover amounts paid to the insured from the at-fault third party who caused the loss.
Which of the following vehicles would NOT qualify as a 'covered auto' under a standard PAP?
Answer: A vehicle regularly furnished for the insured's use by an employer
A vehicle regularly furnished by an employer for the insured's use is excluded because it is available for regular use and not covered as a non-owned auto.
Under PAP Part D (Physical Damage), the insurer's duty to pay a loss is reduced by the applicable:
Answer: Deductible
PAP physical damage claims are reduced by the deductible chosen by the insured, which the insured must pay out-of-pocket.
A PAP insured strikes a deer on the highway. Which coverage applies?
Answer: Comprehensive (OTC), because striking an animal is a listed peril
The PAP specifically lists 'contact with a bird or animal' as a comprehensive (other-than-collision) peril.
When a PAP includes a 'single combined single limit' for liability instead of split limits, it means:
Answer: One aggregate limit applies to both bodily injury and property damage per occurrence
A combined single limit (CSL) provides one total dollar amount that can be applied in any combination to bodily injury and property damage arising from a single occurrence.