Claims Adjuster Test Personal and Commercial Auto Questions and Answers

Question 1

In a standard Business Auto Policy (BAP), which coverage symbol provides the broadest liability protection by applying to 'any auto'?

Accepted Answer

Symbol 1 (Any Auto)

Answer

Symbol 1 provides the broadest liability coverage under a Business Auto Policy. It covers any auto used by the insured, including owned, hired, non-owned, and newly acquired vehicles, without needing to schedule them on the policy.

Question 2

An insured's car is covered by a standard Personal Auto Policy with both Collision and Other Than Collision coverage. While parked on a rural road, the vehicle is significantly damaged when a large deer runs into its side. Which coverage will pay for the repairs?

Accepted Answer

Other Than Collision Coverage

Answer

Other Than Collision, often called Comprehensive coverage, pays for direct and accidental loss to the covered auto from perils other than collision. This specifically includes loss caused by contact with a bird or animal. Collision coverage would apply if the driver swerved to miss the deer and hit another object, like a tree or fence.

Question 3

A Personal Auto Policy's Medical Payments coverage (Part B) is designed to cover reasonable and necessary expenses for an insured after an accident. Which of the following would NOT be covered by this part of the policy?

Accepted Answer

Lost wages while the insured is unable to work.

Answer

Medical Payments coverage pays for medical and funeral expenses incurred by an insured, family members, or passengers. It does not cover non-medical economic losses such as lost wages. Lost wages may be covered under Personal Injury Protection (PIP) in no-fault states or could be part of a liability claim against an at-fault party.

Question 4

An employee uses their personal vehicle to make a bank deposit for their employer. During the trip, the employee negligently causes an accident, injuring another driver. The employee has a personal auto policy, and the employer has a Business Auto Policy with Hired and Non-Owned Auto liability coverage. How will the policies respond to the third-party injury claim?

Accepted Answer

The employee's personal auto policy is primary, and the employer's policy is excess.

Answer

In a non-owned auto situation, the insurance on the vehicle is primary. Therefore, the employee's personal auto policy will respond first to cover the liability. The employer's Non-Owned Auto liability coverage serves as excess coverage, only paying after the limits of the employee's primary policy have been exhausted.

Question 5

A Personal Auto Policy has split liability limits of 25/50/10. In a single at-fault accident, the insured causes $8,000 of damage to one person's car and $4,000 of damage to another person's car. What is the maximum amount the insured's policy will pay for the total property damage?

Accepted Answer

$10,000

Answer

In split liability limits written as X/Y/Z, the third number represents the maximum coverage for total property damage per accident. In this case, the limit is $10,000. Since the total damage is $12,000 ($8,000 + $4,000), the policy will pay up to its limit of $10,000, leaving the insured responsible for the remaining $2,000.

Claims Adjuster Test Practice Test

Claims Adjuster Test Practice Test

Claims Adjuster Test Personal and Commercial Auto Questions and Answers