DC Auto Insurance Policies 2 — Questions and Answers
Question 1: Under DC law, what is the minimum required bodily injury liability coverage per person for a private passenger vehicle?
- $10,000
- $25,000 (Correct answer)
- $50,000
- $100,000
Correct answer: $25,000
DC requires a minimum of $25,000 per person for bodily injury liability on private passenger vehicles.
The District of Columbia mandates minimum auto liability limits of $25,000 per person / $50,000 per accident for bodily injury and $10,000 for property damage. These minimums protect accident victims from uncompensated losses.
Question 2: Which DC auto insurance coverage pays for damage to your own vehicle regardless of fault?
- Liability coverage
- Uninsured motorist coverage
- Collision coverage (Correct answer)
- Medical payments coverage
Correct answer: Collision coverage
Collision coverage pays to repair or replace your vehicle when it collides with another object, regardless of who is at fault.
Collision coverage applies when your vehicle strikes another vehicle or object. It is subject to a deductible and pays regardless of fault, making it distinct from liability coverage that only protects others.
Question 3: In DC, uninsured motorist (UM) coverage must be offered in what minimum amount?
- Equal to liability limits (Correct answer)
- $10,000/$20,000
- $15,000/$30,000
- $50,000/$100,000
Correct answer: Equal to liability limits
DC requires that UM coverage be offered in an amount equal to the insured's liability limits.
DC law requires insurers to offer uninsured motorist coverage in limits equal to the policyholder's own liability limits. The insured may reject or reduce this in writing, but it must be offered at parity.
Question 4: What does comprehensive auto coverage protect against?
- Collision with another vehicle only
- Non-collision losses such as theft, fire, and weather (Correct answer)
- Medical expenses after an accident
- Bodily injury to third parties
Correct answer: Non-collision losses such as theft, fire, and weather
Comprehensive coverage covers losses not caused by collision, including theft, vandalism, fire, hail, and animal strikes.
Comprehensive (also called 'other than collision') covers a wide range of perils including weather events, fire, theft, vandalism, and hitting an animal. It does not cover standard collision damage.
Question 5: In DC, what is the maximum period an insurer may cancel a personal auto policy mid-term for reasons other than non-payment after the policy has been in force 60 days?
- Cancellation is not allowed except for fraud or non-payment (Correct answer)
- 30 days with notice
- 45 days with notice
- 60 days with notice
Correct answer: Cancellation is not allowed except for fraud or non-payment
Once a DC personal auto policy has been in force for 60 days, mid-term cancellation is restricted to non-payment of premium, fraud, or material misrepresentation.
DC consumer protection statutes provide that after 60 days, an insurer may only cancel mid-term for non-payment, fraud, or material misrepresentation. This protects policyholders from arbitrary cancellation.
Question 6: Which of the following is NOT a required disclosure when selling personal auto insurance in DC?
- Available discounts
- Right to cancel within a free-look period
- Premium payment options
- Agent's commission percentage (Correct answer)
Correct answer: Agent's commission percentage
Agents are not required to disclose their commission percentage to personal auto insurance buyers in DC.
DC insurance regulations require disclosure of available discounts, payment options, and consumer rights. Agents are not required to disclose their specific commission to personal auto policyholders, though they must disclose conflicts of interest in certain commercial contexts.
DC Auto Insurance Policies 2
Under DC law, what is the minimum required bodily injury liability coverage per person for a private passenger vehicle?