EXAMFX Personal Auto Policy Details 2 — Questions and Answers
Question 1: Under a Personal Auto Policy, which coverage pays for damage to your own vehicle caused by a collision with another car?
- Comprehensive
- Collision (Correct answer)
- Uninsured Motorist Property Damage
- Medical Payments
Correct answer: Collision
Collision coverage pays for damage to the insured's vehicle resulting from a collision with another object or vehicle, regardless of fault.
Question 2: A named insured under a PAP loans their car to a friend who is NOT listed on the policy. The friend causes an accident. How does the PAP respond?
- Only the friend is covered since they were driving
- The PAP covers the friend as a permissive user (Correct answer)
- Coverage is denied because the friend is not a listed driver
- The PAP only covers the vehicle owner's liability
Correct answer: The PAP covers the friend as a permissive user
A PAP follows the vehicle and covers permissive users — anyone driving with the named insured's permission.
Question 3: Which section of the Personal Auto Policy defines who qualifies as an 'insured' for liability purposes?
- Declarations page
- Conditions section
- Definitions section (Correct answer)
- Exclusions section
Correct answer: Definitions section
The Definitions section of the PAP establishes who qualifies as an insured and clarifies key terms used throughout the policy.
Question 4: Under PAP liability coverage, 'split limits' of 25/50/25 mean:
- $25,000 per accident bodily injury, $50,000 per person, $25,000 property damage
- $25,000 per person bodily injury, $50,000 per accident bodily injury, $25,000 property damage (Correct answer)
- $25,000 property damage, $50,000 bodily injury per person, $25,000 uninsured motorist
- $25,000 deductible, $50,000 per accident, $25,000 medical payments
Correct answer: $25,000 per person bodily injury, $50,000 per accident bodily injury, $25,000 property damage
Split limits express BI per person / BI per accident / PD per accident — so 25/50/25 means $25K per person, $50K per accident for bodily injury, $25K property damage.
Question 5: Which of the following losses would be covered under the Comprehensive (Other Than Collision) portion of a PAP?
- Hitting a guardrail
- Damage from a rear-end collision
- Windshield cracked by a flying rock (Correct answer)
- Running over a pothole
Correct answer: Windshield cracked by a flying rock
Comprehensive coverage applies to losses other than collision, including damage from falling objects, missiles, and flying debris such as a rock.
Question 6: Under the PAP, 'owned automobile' typically includes all of the following EXCEPT:
- A vehicle listed in the Declarations
- A newly acquired auto within the policy period
- A trailer owned by the insured
- A vehicle owned by the insured's employer (Correct answer)
Correct answer: A vehicle owned by the insured's employer
A vehicle owned by the insured's employer is not considered an 'owned automobile' under the insured's personal auto policy.
Question 7: The PAP's Medical Payments coverage applies to medical expenses incurred within how many years of an auto accident?
- 1 year
- 3 years (Correct answer)
- 5 years
- 7 years
Correct answer: 3 years
PAP Medical Payments coverage pays for reasonable medical expenses incurred within 3 years of the date of the accident.
EXAMFX Personal Auto Policy Details 2
Under a Personal Auto Policy, which coverage pays for damage to your own vehicle caused by a collision with another car?