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

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

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

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.

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

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

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

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

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

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

(EXAMFX) Exam FX Insurance Practice Test

(EXAMFX) Exam FX Insurance Practice Test

EXAMFX Personal Auto Policy Details 3