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

The intentional acts exclusion removes PAP liability coverage for injuries or damage the insured deliberately causes.

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

For theft losses, the PAP transportation expenses benefit typically begins after a 48-hour waiting period to allow time to locate the vehicle.

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

Using a personal auto for delivery or other commercial purposes triggers the business use exclusion, eliminating PAP coverage for those trips.

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

The PAP's UM arbitration clause allows either party — the insured or the insurer — to demand arbitration to resolve disputes.

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

PAP physical damage coverage is limited to the actual cash value (ACV) of the vehicle or the cost of repair, whichever is less.

(EXAMFX) Exam FX Insurance Practice Test