Which of the following qualify to be considered insured for liability coverage under the personal auto policy?
The named insured's resident son while driving a neighbors car
The named insured's neighbor while taking the named insured for a drive in the neighbor's car
The named insured's father who, while visiting from another state, drives a car the named insured borrows from a neighbor.
Desert Sun Co., which provides a company owned car to the named insured.
Which of the following expresses the meaning of an automobile policy limit of liability specified as 100/300/100?
B.I. Per person/p.d. Per occurrence/p.d. Per person
P.d. Per person/p.d. Per occurrence/b.i. Per Person
B.i. Per person/p.d. Per person/b.i. Per occurrence
B.i. Per person/b.i. Per occurrence/p.d. Per occurrence
Referring to a personal auto policy, other than collision or OTC provides coverage for which of the following?
Collision
Towing and labor costs
Loss due to mechanical breakdowns
Loss by theft
All of the following would be considered other than collision losses under the personal auto policy EXCEPT:
Collision with another car
Contact with a deer
Loss caused by a falling object
Vandalism
All of the following are eligible for coverage under the uninsured motorists coverage of the personal auto policy EXCEPT:
An accident with a motorist who had less liability insurance than required by financial responsibility laws.
An accident in which a hit-and-run driver hits the insured's covered auto.
An accident with a driver who carries the minimum liability limits required by law, but whose insurance is not adequate to cover the damages.
An accident with an insured driver whose insurance company declines coverage.
The damage to your auto section of the personal auto policy excludes:
Theft of the automobile
Ice damage
Mechanical breakdown
Fire damage
An insured has a personal auto policy with all cars insured by one company. The insured sells one of the cars and buys a new one to replace it. What must the insured do to establish liability coverage for the new vehicle?
Notify the company within 40 days.
Contact the insurance company to have a new policy issued.
Nothing. Coverage is automatic.
Pay the additional premium due for the replacement car within 60 days.
Which of the following is not a factor in determining the liability premium for a personal auto policy?
Make and model year of the vehicle.
Age and marital status of the driver
Territory of garage
Use of the car for personal or business.
An insured has a personal auto policy with a liability coverage of $300,000 per occurrence. The insured causes an auto accident which results in $150,000 bodily injury to the other driver, $200,000 to a passenger, and $8,000 property damage to their car. To what extent would the insured's liability cover these losses?
$300,000
$150,000
$450,000
$8,000
The common method for complying with automobile financial responsibility laws is:
Auto insurance policy
Self-insurance
A bank bond
Homeowners insurance
On which of these may cancellation of an automobile policy by the insurer be based?
The age of the insured - IE: turning 75 years old.
The failure of the insured to give written notice to the insurer of an accident within 15 days in which he was at fault.
Suspension of the drivers license of a person who is insured under the policy and who usually drives the insured automobile.
All of the above.
What is not covered under the physical damage section of an auto policy?
Hood ornament
Radio permanently installed in the dash
Lap top computer stolen from the car which was parked on the street.
Breakage of glass
What is not covered under OTC of a personal auto policy?
Theft of necktie and briefcase from the car left at airport.
Radio installed in the dash.
Spare tire.
An insured has an HO policy and a personal auto policy. He just bought a 40" TV from electronic city and while driving home, he is in an accident and the TV is destroyed. The TV will be covered by his auto policy.
An insured has a HO policy and a personal auto policy. He just bought a 40" TV from electronic city and while driving home, he is in an accident and the TV is destroyed. How may the TV be covered?
Auto policy
Homeowner's policy
Liability policy
Not covered
The best definition of collision?
Two cars collide on a public highway.
A car collides with any object.
A car collides with an object, or upset of car.
A car collides with a moving object.
If the insured is in an accident in a state which has higher limits, what will the insured's company do?
Refuse to pay the claim
Pay the claim, but only after the insured pays a retroactive premium.
Pay up to the limits of the insured's policy.
Will meet the minimum requirements of any other state with no additional premium due.
In a personal auto policy, supplemental payments include:
Cost of defense in excess of liability coverage.
Up to $250 for the cost of bail bonds.
Costs incurred because of attendance at hearings or trials at the company's request.
What is covered under collision in personal auto policy?
Insured locks his keys in the car and breaks a window to get in the car.
Veterinarian bills for a stray dog hit by the insured.
Intentional damage done by the insured.
None of the above.
All are uninsured motorists except:
A hit and run driver who cannot be identified.
A car insured by a bonding company or insurance company, the company being insolvent.
A vehicle self-insured by a government agency.
A vehicle that is not covered by an insurance policy.
In settling a claim for an auto under a personal auto policy, the insurer can repair, replace with like kind and quality, or:
Provide replacement cost
Provide actual cash value
Provide replacement cost plus depreciation
Provide replacement cost with no depreciation.
The insured has a personal auto policy (PAP) with medical payments of $1000. Which of the following is an incorrect statement:
The insured drives a neighbor's child to school and is in an accident. Both are covered for a total of $1000 of medical payments.
The insured's son is hit by a car while walking to school and is covered for $1000 of medical expenses.
The insured is hurt while driving with a neighbor who does not have medical payments. The insureds medical payment will cover him.
The insured slams his daughter's hand in the car door and the injury is covered.
Under a personal auto policy, where would the insured have coverage?
Tokyo, Japan
London, England
Montreal, Canada
Mexico City, Mexico
The insured has a personal auto policy with bodily injury limits of 25/50. There were three injured parties in the other car with medical bills of (1) $30,000, (2) $9,000, and (3) $8,000. How much will the liability policy pay?
$47,000
$42,000
$50,000
Nothing
Mike has a personal auto policy. Which of the following would be covered by his policy with additional premium and endorsement attached?
Mike's use of a temporary substitute vehicle while his own car is being repaired.
Mike pulls a row boat on a trailer behind his car.
Mike's use of an unowned company car which is provided for his regular use.
Mike trades in his car and, while driving home in his new car, he is in an accident.
Janet has a personal auto policy. Which of the following would not be covered by her policy without an additional premium and an endorsement attached?
Janet's use of a temporary substitute vehicle while her own car is being repaired.
Janet pulls a rowboat on a trailer behind her car and the trailer breaks loose causing damage.
Janet runs over a mailbox while using an unowned company car that is provided for her regular use.
Janet trades in her car and, while driving home in her new car, she is in an accident.
An insured has collision coverage. In which of the following cases would he be covered?
The vehicle is washed away in a flood.
A tree fell in the street two hours earlier due to a storm. The insured hit it and caused damage to the car.
The insured hit a pothole and damaged the car.
A rock flew off a truck and broke the insured's windshield.
A personal auto insured wants to add his motorcycle to his personal auto policy (PAP) by endorsement. Why is the endorsement needed?
The PAP does not cover vehicles with two wheels.
The insured cannot add his motorcycle by endorsement.
Motorcycles need an endorsement as they are dangerous to drive.
The insured has been driving only for two years.
Other than collision of a personal auto policy would cover:
Radio that is installed in the dash.
Spare tire in the trunk.
In determining rates to charge for auto insurance, a company may use the following three factorzs plus other factors approved by the commissioner:
1. Driving experience 2. Driving record 3. Annual mileage
Art has a homeowner's policy. He does not own a car. He is planning on taking a trip and renting a car. Sometimes he borrows his friends' car. What would you suggest be added to a personal auto policy to cover his needs?
Named non-owner
Extended non-owner
Miscellaneous vehicle endorsement
Special vehicle endorsement
If the insured has auto insurance and he borrows a car on which there is auto insurance and he is in an accident, what is true?
Both policies apply but the insured's insurance in primary.
Both policies apply but the owner of the car's insurance is primary.
The insured's policy will pay the claim.
The owner of the czar's policy will pay the claim.
Under the OTC, what is the limit for transportation expense incurred by the insured in the event of the total theft of the insured's covered auto?
Coverage pays up to $20 a day to a max of $600.
Coverage pays up to $30 a day to a max of $450.
Coverage pays up to $15 a day to a max of $1000.
Policy will pay nothing.
An insured woman has collision, OTC, and liability protection on her auto policy. She borrows an auto on which the owner carries only liability coverage. She is in an at fault accident. How will the claim be settled?
The auto owner's liability is primary; no collision coverage applies.
The insured woman's liability is primary; no collision coverage applies.
The auto owner's liability is primary; the insured woman's collision coverage will cover the borrowed car.
The insured woman's liability insurance is primary and her collision coverage will cover the borrowed car.
A personal automobile policy with Mexican liability endorsement will cover:
A driver anywhere in Mexico.
A person living within 25 miles of the Mexican boarder.
A Mexican national while driving in the U.S.
An American while driving up to 25 miles into Mexico.
A non-owned auto is covered on a PAP.
If it is leased
If it is for regular use
If it is borrowed from a friend without permission
All of the above
Damage to an automobile caused by an earthquake is covered under:
Other than collision
Supplementary coverages
None of the above
Damage caused to an auto by an earthquake is part of the OTC coverage in a personal auto policy
Under the other than collision coverage, which of the following would be covered:
The insured does property damage to another car
The insured injures another person
The tires are stolen from the insured's car
Collision damage to the insured's car
The insured's car is stolen. The thief totaled the car. What would provide coverage for the insured?
Property damage
The owner of the car carried liability, medical payments, and other than collision. Her insurance will cover theft of the car.
If an individual drives his auto over broken glass and has a blowout, coverage would be provided by:
Physical damage
The insured's unoccupied auto coasts down a hill and strikes a stop sign. How would damage to the car be covered, if at all?
By the insured's liability policy
By the insured's physical damage policy
By the insured's underinsured motorists policy
By the state guarantee insurance fund.
How will damage to the sign by covered?
Which is an uninsured motorist?
Hit and run driver
Car insured by an insolvent company
A driver with no insurance or bond
The insured purchased a motorcycle and needs to insure it. How may the insurance cover the motorcycle on a personal auto policy?
Special motorcycle endorsement
Cannot be endorsed on a personal auto policy
Which of these would be a covered auto under a personal auto policy?
Motorcycle
Trailer
Mobile Home
Tractor-trailer
Bob purchases auto insurance. He has never been in an accident. He told the insurance company he had a ticket 36 months ago. Shortly afterward, Bob's car was stolen. The company will pay the claim and continue Bob's insurance in force because:
The misrepresentation was immaterial, and the company would have issued the insurance to Bob.
Misrepresentations are o.k. in the eyes of the law if they are unintentional.
The company would have needed to discover the mistake prior to the loss in order not to cover the loss.
Bob purchased auto insurance. He never has been in an accident. He told the insurance company that he had a ticket 36 months ago. It was actually 34 months ago but Bob believed it to be 36 months ago. Shortly afterward, Bob's car got stolen. The company will pay the claim and continue Bob's insurance in force because:
The concealment was not material.
The concealment was not intentional.
The concealment would have to be discovered by the company before the loss occurred.
The loss would have to be paid by the insurance as a covered loss.
Which of the following is true in regard to auto insurance?
If an insurer is not going to renew a policy, it would have to give 30 days notice to the insured.
An insurer must give 10 days notice to the insured to cancel an auto policy for non-payment of premiums.
If a company wants to cancel a policy, it must give 20 days notice.
A company can cancel an automobile policy for all reasons except non-payment of premium, with how many days notice?
5 days
10 days
20 days
30 days
The insured's auto is damaged. The insurer:
May offer a cash settlement
Pay to have the damage repaired
Replace the damage with like kind and like quality
CAARP can cover the minimum liability limits of:
5/30/15
15/30/5
45/15/10
10/25/30
In automobile insurance, what is meant by other than collision coverage?
As the name implies, it is all inclusive. It combines property damage, bodily injury liability, property damage liability, and medical payments and collision.
It covers any direct or accidental loss of, or damage to, the insured's automobile, except collision.
It covers all aspects of physical damage to the insured automobile such as fire, theft, collision, or theft.
It insures against direct and accidental losses.
Which of the following would be covered under OTC?
Impact with another vehicle.
Collision with a pole.
Driver lost control of car on a curve due to an ice storm and upset the vehicle.
Kelly has liability cover on her auto. Which of the following would not be covered by her liability policy?
Kelly's neighbor who is using her car with Kelly's permission.
Kelly's husband who has borrowed the neighbor's pick up truck.
Kelly when borrowing a friend's car.
Kelly's neighbors son who is joy riding in Kelly's car.
Which of the following would be covered under collision?
The car windshield is broken by a rock kicked up by a passing truck.
Veterinary bills for a stray dog that the insured accidentally hit.
The insured locks his keys in his car and breaks a window to get inside.
What is covered under physical damage of a personal auto policy?
Earthquake
Flood
Violent windstorm blows a sign off a building and it hits the car causing damage
Mary's car was stolen and she had to rent a car for two months until her car was replaced. How much of her rental expense will be covered by her insurance?
All her rental expense will be covered if she has purchased extra transportation expense.
None of it will be covered
It will be covered up to the limits stated in her policy.
It will be covered for one month only
In settling a claim under a personal auto policy, the company may replace the car with one of like kind and like quality.
The insured has a $500 deductible on collision and a $50 deductible on OTC. She runs off the road and hits a light post doing $550 damage to her car. How much will she receive from the insurance company?
$50
$250
$450
$500
Automobile liability policies issued in California include coverage to protect against uninsured motorists. The coverage:
May not be decline by the insured.
Is included in the policy, but is not effective unless the policy is so endorsed and an additional premium is paid.
Must be included in the policy, but can be waived by supplemental agreement between the insurer and the insured.
Is optional and automatically included when the limit of liability for bodily injury is increased.
All are covered under a personal auto policy except:
Private passenger vehicle
One-half ton pick up truck used on a farm.
Two-ton van used in part-time business.
Trailer.
Under a personal auto policy, towing and labor expenses:
Are never paid
Paid if endorsed onto the policy for an additional premium
Automatically included in all policies
Automatically endorsed onto the policy for an additional premium
Damage to a rental car used on a temporary basis under a personal auto policy would be covered under:
Liability section
The insured has $100,000 worth of underinsured motorists protection. Another operator of an auto who carries $50,000 in liability insurance strikes the insured, causing $100,000 in in juries. What will the insured's company pay?
$30,000
$100,000
If you cannot purchase auto insurance in the normal market place, you may purchase insurance through the:
CAARP
California fair plan
NFIP
There is no insurance available
Under the assigned risk plan:
All insurers selling that class of insurance must participate and they all share in the losses.
Policies are assigned to the large insurance carriers.
Policies are assigned to companies that wish to participate.
Policies are randomly assigned to all companies selling that class of insurance.
If an individual cannot get auto insurance through the normal market place, he may obtain insurance through the fair plan.
In a personal auto policy, in the physical damage section, coverage is provided for:
Insured's clothes stolen from the covered auto
Collision coverage under a personal auto policy would cover cost incurred for rental expenses following damage caused by collision.
An auto is damaged in a hail storm. How is the loss covered?
Not covered due to the catastrophic exposure of hail.
Only covered by the auto policy if the auto was garaged.
If an insured changes his deductible from $1000 to $100, this will allow for:
Additional small claims
Lower premiums
Both
Neither
A woman purchases another car and adds it to her policy. She does not pay the additional premium and the insurer cancels the policy for non-payment. How many days notice is the insurer required to give to her?
10
15
20
30
An insured adds an additional car to his auto policy. What is true about an inspection?
California code states nothing about inspections
An inspection is required only if the insured wants collision coverage
An inspection is required if the insured wants other than collision and collision coverage
Tom has a personal auto policy with medical payments of $2000. Which of the following is correct?
Tom's daughter is struck while riding her bicycle. Tom's medical payments will not cover his daughter as she was riding a bicycle in the street at the time of the accident.
Tom's daughter is struck by a car while crossing the street. Tom's medical payments will not cover her as she was not in a vehicle at the time of the accident.
Tom gave his neighbor a ride to the store. They were involved in an accident and each sustained injuries over $2000. Tom's medical payments paid each Tom and his neighbor $2000.
Tom's neighbor gave Tom a ride to the store. They were involved in an accident and Tom sustained over $2000 in injuries. Both Tom and his neighbor's policies will not pay more than a combined amount of $2000.
