EXAMFX Personal Auto Policy Details 3

Question 1

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

Accepted Answer

It covers bodily injury caused by a driver with no insurance

Answer

It covers property damage only

Answer

It applies only when the insured is a pedestrian

Answer

It replaces liability coverage when the insured is at fault

Question 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?

Accepted Answer

No, coverage ends when a child leaves the household

Answer

Yes, children are always covered regardless of residency

Answer

Yes, if the child is a full-time student

Answer

No, unless the child pays a separate premium

Question 3

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

Accepted Answer

Cooperate with the insurer in its investigation

Answer

Admit fault to settle quickly

Answer

Hire an independent appraiser immediately

Answer

File a claim within 24 hours

Question 4

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

Accepted Answer

Medical Payments

Answer

Liability

Answer

Uninsured Motorist Bodily Injury

Answer

Underinsured Motorist

Question 5

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

Accepted Answer

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

Answer

Part A – Liability only, not physical damage

Answer

Parts A and B extend automatically; Parts C and D do not

Answer

Rental cars are always excluded from a PAP

Question 6

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

Accepted Answer

Sliding off an icy road into a ditch

Answer

Theft

Answer

Earthquake

Answer

Contact with an animal

Question 7

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

Accepted Answer

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

Answer

The at-fault driver has no insurance at all

Answer

The insured's own liability limits are exhausted

Answer

The insured is driving an underinsured vehicle