Free Claims Adjuster Test Personal and Commercial Auto Questions and Answers

Question 1

An auto repair shop has a policy that covers damage to customers' vehicles while they are on the premises for service. A technician test-driving a customer's car collides with another vehicle. Which specific coverage within the shop's policy would respond to the damage to the customer's car?

Accepted Answer

Garagekeepers Coverage

Answer

Garagekeepers Coverage is specifically designed to cover damage to customers' vehicles that are in the insured's care, custody, or control for purposes of servicing, repair, or storage. Garage Liability, on the other hand, covers the business's liability for bodily injury or property damage caused by its operations but excludes damage to customers' vehicles in its care.

Question 2

A company's Business Auto Policy declarations page shows Symbol 7 for Liability Coverage. Which of the following statements is true regarding how coverage applies?

Accepted Answer

Only autos specifically listed on the policy are covered for liability.

Answer

Symbol 7 in a Business Auto Policy provides liability coverage only for the 'specifically described autos' listed on the declarations page. This is a more restrictive form of coverage compared to Symbol 1 ('Any Auto'), and it requires the insured to notify the insurer of newly acquired vehicles to have them covered.

Question 3

In a state with a 'no-fault' auto insurance system, an insured is injured in an accident caused by another driver. How will the insured's medical expenses typically be paid initially?

Accepted Answer

By the insured's own Personal Injury Protection (PIP) coverage, regardless of fault.

Answer

In a no-fault state, each driver's own insurance policy pays for their own medical expenses and lost wages up to a certain limit, regardless of who caused the accident. This is handled through the Personal Injury Protection (PIP) coverage. The ability to sue the at-fault driver is typically restricted unless the injuries meet a certain threshold.

Question 4

Which of the following losses to a covered auto would be paid under a Personal Auto Policy's Part D - Other Than Collision (Comprehensive) coverage?

Accepted Answer

The vehicle is damaged by hail during a severe thunderstorm.

Answer

Other Than Collision, often called Comprehensive coverage, pays for direct and accidental loss to a covered auto from causes other than collision. Covered perils specifically include things like hail, fire, theft, falling objects, and contact with a bird or animal. Hitting a tree, another car, or overturning are all considered collision losses.

Question 5

An insured driver, who carries Uninsured Motorist (UM) coverage, is injured in an accident caused by a hit-and-run driver. Which of the following is typically true regarding the UM claim?

Accepted Answer

UM coverage will pay for the insured's bodily injuries and, in some states, property damage.

Answer

Uninsured Motorist (UM) coverage is designed to protect the insured for bodily injury (and property damage in some states) when they are injured by a driver who has no insurance or by a hit-and-run driver. In essence, the insured's own policy steps in to pay the damages they are legally entitled to recover from the at-fault, uninsured driver. It covers expenses like medical bills, lost wages, and pain and suffering.

Claims Adjuster Test Practice Test

Claims Adjuster Test Practice Test

Free Claims Adjuster Test Personal and Commercial Auto Questions and Answers