P&C Personal Automobile Policies 3

Question 1

Personal Injury Protection (PIP) coverage is primarily associated with:

Accepted Answer

No-fault auto insurance states, where PIP pays the insured's own medical bills and lost wages regardless of fault

Answer

States that use a tort (fault-based) liability system only

Answer

Commercial vehicles only

Answer

Uninsured motorist coverage

Question 2

What is the purpose of a 'named non-owner policy' in auto insurance?

Accepted Answer

To provide liability coverage to an individual who does not own a car but regularly drives non-owned vehicles

Answer

To cover a vehicle that is not owned by the insured but is regularly used

Answer

To cover only vehicles listed on the policy

Answer

To extend coverage to commercial vehicles used by the insured

Question 3

Under the PAP, which of the following situations would typically NOT be covered under Part A (Liability)?

Accepted Answer

The insured intentionally drives into a neighbor's fence after an argument

Answer

The insured rear-ends another vehicle at a stoplight

Answer

The insured's teenage child, a household resident, causes an accident while driving the covered auto

Answer

The insured causes an accident while driving a newly acquired vehicle during the automatic coverage period

Question 4

Under a personal auto policy, which party is covered for a loss that occurs while the named insured's covered auto is being used by a mechanic test-driving the vehicle?

Accepted Answer

The named insured's PAP generally excludes coverage for vehicles used by auto repair shops, deferring to the shop's garagekeepers and garage liability coverage

Answer

The mechanic's employer's garage liability policy is the only coverage applicable

Answer

Both policies apply on a shared primary basis with no exclusions

Answer

The named insured has no liability for actions of the mechanic

Question 5

The 'other insurance' provision in a PAP typically provides that coverage for a non-owned auto is:

Accepted Answer

Excess over any other valid and collectible insurance on the non-owned vehicle

Answer

Primary, paying before any other applicable policy

Answer

Equal to the other insurance on a pro-rata basis

Answer

Not available for non-owned autos under any circumstances

Question 6

Which of the following is generally NOT covered under the comprehensive (other-than-collision) portion of a PAP?

Accepted Answer

Collision with another vehicle

Answer

Theft of the entire vehicle

Answer

Hail damage to the roof of the vehicle

Answer

Windshield cracking from a road stone