EXAMFX Personal Auto Policy Details 2

Question 1

Under a Personal Auto Policy, which coverage pays for damage to your own vehicle caused by a collision with another car?

Accepted Answer

Collision

Answer

Collision coverage pays for damage to the insured's vehicle resulting from a collision with another object or vehicle, regardless of fault.

Question 2

A named insured under a PAP loans their car to a friend who is NOT listed on the policy. The friend causes an accident. How does the PAP respond?

Accepted Answer

The PAP covers the friend as a permissive user

Answer

A PAP follows the vehicle and covers permissive users — anyone driving with the named insured's permission.

Question 3

Which section of the Personal Auto Policy defines who qualifies as an 'insured' for liability purposes?

Accepted Answer

Definitions section

Answer

The Definitions section of the PAP establishes who qualifies as an insured and clarifies key terms used throughout the policy.

Question 4

Under PAP liability coverage, 'split limits' of 25/50/25 mean:

Accepted Answer

$25,000 per person bodily injury, $50,000 per accident bodily injury, $25,000 property damage

Answer

Split limits express BI per person / BI per accident / PD per accident — so 25/50/25 means $25K per person, $50K per accident for bodily injury, $25K property damage.

Question 5

Which of the following losses would be covered under the Comprehensive (Other Than Collision) portion of a PAP?

Accepted Answer

Windshield cracked by a flying rock

Answer

Comprehensive coverage applies to losses other than collision, including damage from falling objects, missiles, and flying debris such as a rock.

(EXAMFX) Exam FX Insurance Practice Test

(EXAMFX) Exam FX Insurance Practice Test

EXAMFX Personal Auto Policy Details 2