Chapter 6 = Personal Auto Policy

Front 1

Name the 6 parts of the PERSONAL AUTO POLICY

Back 1

Part A - Liability Coverage

Part B - Medical Payments

Part C - Uninsured Motorist

Part D - Coverage for Damage to Your Auto

Part E - Duties after an Accident or Loss

Part F - General Provisions

Front 2

Personal Auto Policy provides insurance for private passenger vehicles that weigh less than _________.

Back 2

10,000 pounds

Front 3

If you lease a car for a period of _______ months or more, you are considered the owner under the policy.

Back 3

6 months

Front 4

Define BODILY INJURY

Back 4

- Bodily Harm

- Sickness

- Disease

- Death

Front 5

What defines OCCUPYING in the Personal Auto Policy?

Back 5

- Being In your car

- Getting In to your car

- Getting on

- Getting out

- Getting Off

Front 6

Define "YOUR COVERED AUTO"

Back 6

- Any vehicle shown in the declarations

- A newly acquired car

- A trailer that you own

- A car or trailer you do NOT own but that you're using temporarily because your car brokedown, is being repaired, etc...

Front 7

Under Part D, how many days do you have to report the purchase of a new car that's replacing your old car?

Back 7

14 days

Front 8

What is covered in "PART A" of the Personal Auto Policy?

Back 8

LIABILITY

- Pays damage for bodily injury or property damage to OTHERS

- Covers your defense against a lawsuit for damages to OTHERS

Front 9

Who is covered in PART A of the Personal Auto Policy?

Back 9

- You and your family members

- Anyone using your car with your permission

- A person or organization legally responsible for you

Front 10

Define "SUPPLEMENTARY PAYMENTS" in the Personal Auto Policy.

Back 10

Other payments that the insurance company makes in addition to the limit of liability.

Front 11

What does "SUPPLEMENTARY PAYMENTS" pay for?

Back 11

- If bail is required because of an accident, the policy will pay up to $250

- If defending a lawsuit, the insurance will pay premiums on appeal bonds

- Any interest that accumulates after a judgement has been entered

- Up to $200 a day for loss of earnings due to you being at trial.

- Reasonable expenses incurred at the insurance company's request.

**Does NOT include traffic fines.

Front 12

"Part A" EXCLUSIONS of the Personal Auto Policy state that you will NOT receive liability coverage if you do any of the following...

Back 12

- Cause property damage to YOUR own car or one you're driving

- Intentionally cause bodily injury or property damage

- Cause property damage to a car you're driving (renting, using, or taking care of)

- Cause bodily injury to your employee while they're working for you

- Own or are driving a car being used as public or livery conveyance. In other words, a car hired out to the general public (i.e. a taxi)

- If your job is to sell, repair, service, store road test or park cars.

- If you're using the car while doing business (i.e. deliveries)

- If you're using a car without being entitled to

Front 13

"Part A" EXCLUSIONS of the Personal Auto Policy state that you will NOT receive liability coverage for the use of which types of vehicles?

Back 13

- Motorcycles

- Vehicles not meant for public roads (i.e Snow Mobile or ATV). Except for vehicles used for medical emergency, trailers, non-owned golf carts.

- Vehicles not owned by you, but that you drive regularly (EXAMPLE: Company car)

- Vehicle owned by family who isn't listed on your policy.

- Vehicles meant for racing

Front 14

The LIMIT OF LIABILITY shown in the declarations page, is the most $$ the insurance will pay for any one accident regardless of the number of........

Back 14

- People insured

- Claims made

- Vehicles shown in the declarations page

- Vehicles involved in the accident

Front 15

Define "OUT OF STATE COVERAGE"

Back 15

When you're driving your car out of state, "Part A Liability coverage" will provide the coverage required by the laws of that state.

Front 16

What is covered in PART B of the Personal Auto Policy?

Back 16

MEDICAL PAYMENTS

- Expenses for YOU & YOUR FAMILY's medical and funeral services

Front 17

PART B of the Personal Auto Policy will pay medical expenses for ________ Years after an accident.

Back 17

3 years

Front 18

Do you have to be legally responsible for causing the accident/damage in order to receive medical coverage in PART B of the Personal Auto Policy?

Back 18

No

Front 19

WHO is covered in Part B of the personal auto policy?

Back 19

- You

- Any family member occupying the car

- Any passengers of the car

Front 20

What types of accidents are covered in PART B of the personal auto policy?

Back 20

- An accident in ANY auto you or your family are in (even if it's not your auto)

- If you or your family are hit by a car while you are pedestrians

Front 21

Do you have to be legally responsible for causing the accident/damage in order to receive coverage in PART A of the Personal Auto Policy?

Back 21

Yes

Front 22

Name the EXCLUSIONS in PART B of the Personal Auto Policy.

In other words, you will not receive Part B (medical coverage) if you do any of the following.....

Back 22

- Occupy a vehicle with less than 4 wheels (motorcycle)

- Occupy a vehicle used for public/livery (taxi)

- Occupy a vehicle used as a home (live in your car)

- If you're working & getting workers comp

- Occupying a car that you use on the regular, but isn't covered in your insurance (company car)

- Using a vehicle that you're not entitled to use

Front 23

Will PART B cover your medical expenses if you have an accident while using a truck or commercial vehicle for business?

Back 23

No.

Business use of trucks or commercial vehicles is considered an EXCLUSION in Part B.

Front 24

Will PART B cover your medical expenses if you have an accident while using a private passenger car, SUV, pick up van or trailer for business?

Back 24

Yes, a "coverage kickback" applies

Front 25

Name the Auto Policy that covers you if you are injured in an accident by someone else who is driving a car without insurance?

Back 25

Part C - Uninsured Motorist Coverage

Front 26

Does the "UNINSURED MOTORIST COVERAGE" apply if you are injured in an accident by someone else who is driving without insurance but that other person is NOT at fault for the accident?

Back 26

No.

The other person must be legally responsible for the accident for you to receive coverage.

Front 27

Name the 4 reasons someone else's car would be considered an "UNINSURED MOTOR VEHICLE"

Back 27

(1) Doesn't have insurance

(2) Has insurance but the liability limits are less than those required in YOUR state

(3) Is a hit & run vehicle

(4) Has insurance but denies the claim or becomes insolvent (i.e. bankrupt)

Front 28

What is an UNDERINSURED MOTORIST?

Back 28

Someone who has insurance but not enough to cover claims.

Front 29

What is the Insuring Agreement in Part D - COVERAGE FOR DAMAGE TO YOUR AUTO?

Back 29

The insurance will cover direct & accidental damage to your owned or non-owned car regardless of fault.

Front 30

What does COLLISION cover?

Back 30

Impact with another car or object (i.e. Tree)

Front 31

What is covered in "Other Than Collision (Comprehensive)" ?

Back 31

All causes of loss except collision and causes specifically excluded from the policy.

Including:

- Contact with a Bird or animal
- Earthquake

- Windstorm

- Riots

- Missiles

- Etc....

Front 32

What is the maximum the insurance will pay for transportation expenses if your car is in a collision or comprehensive loss?

Back 32

$20 per day or $600 total

Front 33

Will "Part D (Coverage for Damage to Your Auto)" provide coverage if your car is damaged due to wear & tear, freezing, equipment break down, damage to tires?

Back 33

No, because these are all maintenance issues.

Front 34

Will "Part D (Coverage for Damage to Your Auto)" provide coverage if your car is damaged due to war or nuclear hazard?

Back 34

No

Front 35

Will "Part D (Coverage for Damage to Your Auto)" provide coverage if electronic equipment that is permanently installed in your car is damaged?

Back 35

Yes

Front 36

Will "Part D (Coverage for Damage to Your Auto)" provide coverage if your car's radio, CD system or navigation is damaged?

Back 36

No

Front 37

Will "Part D (Coverage for Damage to Your Auto)" provide coverage if your car is confiscated by the government?

Back 37

No

Front 38

What is the limit of liability for Part D (Coverage for Damage to Your Auto)?

Back 38

The actual cash value of the car OR the amount necessary to repair/replace it. Whichever is less.

Front 39

A ___________ auto is any private passenger auto, pickup, van, or trailer, that you or your family member are temporarily using but do not own and do not use on a regular basis (i.e. a rental).

Back 39

Non-owned

Front 40

A ____________ is any auto or trailer being used as a temporary substitute for your car while your car is out of use due to a break down, repair, destruction, etc...

Back 40

Non-Owned

Front 41

True or False...

When paying for a loss under Part D, the insurance can choose to make payments in cash or by repairing/replacing the stolen or damaged car.

Back 41

True

Front 42

True or False...

When paying for a loss under Part D, if the insurance is making payments in cash, they will include sales taxes that apply.

Back 42

True

Front 43

True or False...

When paying for a loss under Part D, the insurance has the option to keep the stolen property at an agreed value or return it to you.

Back 43

True

Front 44

When paying for a loss under Part D, if the insurance chooses to return stolen property to you, do they still have to pay for any damage that resulted from the theft?

Back 44

Yes

Front 45

Under Part D, If your car is in the repair shop, and the mechanic damages it - who would pay for the damage?

Back 45

The Repair shop's Iinsurance

Front 46

If you and the insurance company are unable to agree about the amount of a loss, either of you can demand an ______________.

Back 46

Appraisal

Front 47

If you buy a new car, you have to report it to the insurance within __________ days for Collision or Comprehensive ("Other than Collision") coverage to apply.

Back 47

14

Front 48

If you buy a new car with NO Collision and NO "comprehensive (other than collision) coverage", you have to report it to the insurance within __________ days.

Back 48

4

Front 49

Under Part C of the Personal Auto Policy, when you and the insurance do not agree on the recovery of damages (i.e. entitlement to damages) or the amount recoverable by the insured, what system is used to resolve the disagreement?

Back 49

Arbitration

Front 50

Failure to comply with the duties listed in "PART E: Duties After an Accident or Loss" may result in claims denial.

Name the duties.

Back 50

(1) Notify the insurance of the what, when, where, how of accident

(2) Cooperate with the investigation & settlement

(3) Send any copies of notices or legal papers

(4) Submit to a physical exam as reasonably required

(5) Authorize the insurance to obtain medical reports

(6) Submit proof of loss

(7) Notify the police IF it's a HIT & RUN or the car is stolen

(8) Protect the property from further damage

(9) Allow the insurer to inspect & appraise the damage before you repair it

Front 51

Define "Part F: General Provisions"

Back 51

They spell out the obligations of both the insured and the insurance company.

Front 52

Under "PART F: General Provisions", if the insured declares bankruptcy, does that relieve the insurer of its obligations?

Back 52

NO.

Front 53

Name the policy territory in the Personal Auto Policy.

Back 53

United States, its territories and possessions

Puerto Rico, Canada and while being transported within its ports.

Front 54

Is Mexico part of the policy territory in the Personal Auto Policy?

Back 54

NO

Front 55

If an insurance company is cancelling a new policy due to non-payment, they must give you ______ days notice.

Back 55

10 days

Front 56

If an insurance company is cancelling a new policy for any reason besides non-payment, they must give you ______ days notice.

Back 56

20 days

Front 57

During the first __________ of a new policy, the insurance company may cancel the policy for any reason as long as they give you advance notice.

Back 57

60 days

Front 58

After you've had a policy for 60 days, the insurance company can only cancel it for these 3 reasons....

Back 58

(1) Non-payment

(2) You obtained the policy through fraud or false information on the application

(3) Suspension of Driver's license

Front 59

If the insurance company is not RENEWING your policy, they must give you at least ___________ days written notice.

Back 59

20

Front 60

If two or more policies issued by the same insurance company apply to the same accident, the maximum limit liability that will be paid will not exceed the policy with the ___________ limit.

Back 60

highest limit

Front 61

The "EXTENDED NON-OWNED COVERAGE FOR A NAMED INDIVIDUAL" is an ENDORSMENT.

It provides coverage for....

Back 61

(1) Non-owned autos that you use on a regular basis (i.e. company car)

(2) Liability coverage for you and the BUSINESS USE of a commercial vehicle you do NOT own.

(3) Liability coverage for use of a vehicle as a PUBLIC or LIVERY CAR (i.e. taxi)

Front 62

The "TOWING & LABOR costs coverage" Endorsment provides coverage for....

Back 62

(1) Towing to a garage

(2) Labor performed at the site the car was disabled

Front 63

The "MISCELLANEOUS TYPE VEHICLE" Endorsement changes the policy to include these 5 types of vehicles?

Back 63

- Motor Home

- Motorcycle

- ATV

- Dune Buggy

- Golf Cart

Front 64

What types of vehicle is NOT included in the "MISCELLANEOUS TYPE VEHICLE" Endorsement?

Back 64

Snowmobile

Front 65

What does the "NAMED NON-OWNER COVERAGE FOR A NAMED INDIVIDUAL" endorsement cover?

Back 65

Provides liability, medical and uninsured motorist coverage for people who don't own a car but often borrow or rent autos.

Front 66

The "LIMITED MEXICO COVERAGE" Endorsement provides coverage for losses and accidents that occur in Mexico & within 25 miles of the US border.

It only applies if you are visiting Mexico for less than _______ days.

Back 66

10 days

Front 67

Does the "LIMITED MEXICO COVERAGE" provide coverage to citizens or residents or Mexico?

Back 67

No

Front 68

The "OPTIONAL LIMITS TRANSPORTATION EXPENSES" coverage endorsement is used if you want to increase the limit of liability amount for transportation expenses that are provided in your personal auto policy.

Does this endorsement change or broaden the insurance provided for transportation expenses in PART D?

Back 68

No

Front 69

The JOINT OWNERSHIP COVERAGE ENDORSEMENT amends the definition of "you" and "yours" to include ______ or more people other than husband & wife who live in the same house, or relatives who live somewhere else but jointly own the car.

Back 69

2