EXAMFX Personal Auto Policy Details 4

Question 1

Which PAP exclusion prevents coverage when the insured intentionally causes bodily injury or property damage?

Accepted Answer

Intentional acts exclusion

Answer

Commercial use exclusion

Answer

Business exclusion

Answer

Nuclear exclusion

Question 2

Under a PAP, 'transportation expenses' coverage (rental reimbursement) typically begins paying after how long following a covered theft?

Accepted Answer

After 48 hours

Answer

Immediately

Answer

After a 24-hour waiting period

Answer

After 7 days

Question 3

A PAP policyholder uses their personal vehicle to deliver pizzas part-time. How does the PAP treat this?

Accepted Answer

Excluded under the business/commercial use exclusion

Answer

Fully covered because it is a personal vehicle

Answer

Covered only for the personal use portion of each trip

Answer

Covered but subject to a higher deductible

Question 4

Under the PAP, which party has the right to request arbitration when the insured and insurer disagree on an Uninsured Motorist claim?

Accepted Answer

Either the insured or the insurer

Answer

Only the insurer

Answer

Only the insured

Answer

Only a court of law

Question 5

The 'limit of liability' for PAP collision coverage is the lesser of the cost to repair the vehicle or:

Accepted Answer

The actual cash value (ACV) of the vehicle

Answer

The original purchase price

Answer

The stated value on the Declarations page

Answer

The replacement cost of a new vehicle

Question 6

Which statement correctly describes how PAP liability coverage handles punitive damages?

Accepted Answer

Most PAP policies exclude punitive damages

Answer

They are always covered under PAP liability

Answer

Punitive damages are covered only under umbrella policies

Answer

State law always requires PAP to cover punitive damages

Question 7

If a PAP insured's vehicle is totaled and the insurer pays ACV, what happens to the salvage title?

Accepted Answer

The insurer takes ownership of the salvaged vehicle

Answer

The insured retains the vehicle and title with no change

Answer

The insured can keep the salvage by accepting a reduced settlement

Answer

The salvage must be auctioned by the state