Property And Casualty Insurance License Casualty Insurance Basics 3

Question 1

Which of the following is covered by comprehensive auto coverage?

Accepted Answer

Collision with a deer

Answer

Comprehensive coverage pays for vehicle damage from causes other than collision, including hitting an animal, theft, vandalism, fire, and weather events.

Question 2

What does 'medical payments' (MedPay) coverage provide under an auto policy?

Accepted Answer

Payment for medical expenses for the insured and passengers regardless of fault

Answer

MedPay covers reasonable medical and funeral expenses for the insured and passengers injured in an auto accident, without regard to fault.

Question 3

A 'garage liability' policy is designed for:

Accepted Answer

Auto dealers, repair shops, and service stations

Answer

Garage liability covers businesses in the automotive service industry for liability arising from their operations, including customer vehicles in their care.

Question 4

Under a business auto policy (BAP), 'Symbol 1' means:

Accepted Answer

Any auto is covered

Answer

Symbol 1 (Any Auto) provides the broadest auto liability coverage, covering the insured for any vehicle used in connection with their business, whether owned, hired, or borrowed.

Question 5

What is 'hired and non-owned auto' (HNOA) liability coverage?

Accepted Answer

Coverage for vehicles the business rents or employees use their personal vehicles for business

Answer

HNOA covers the business's liability when employees use rented vehicles or their own personal vehicles while conducting company business.

Property And Casualty Insurance License Practice Test

Property And Casualty Insurance License Practice Test

Property And Casualty Insurance License Casualty Insurance Basics 3