EXAMFX - Exam FX Insurance Personal Auto Policy Details Questions and Answers

Question 1

An insured has a Personal Auto Policy with liability limits of 25/50/20.
They cause an accident resulting in bodily injuries to three people in another car.
Person A's injuries total $30,000, Person B's are $15,000, and Person C's are $10,000.
The damage to the other car is $18,000.
What is the maximum amount the insured's policy will pay for the bodily injury claims?

Accepted Answer

$50,000

Answer

$55,000

Answer

$25,000

Answer

$70,000

Question 2

Under Part D (Coverage for Damage to Your Auto) of a standard Personal Auto Policy, which of the following losses would be covered under Other Than Collision (Comprehensive) coverage?

Accepted Answer

The insured vehicle strikes a deer that runs across the road.

Answer

The insured vehicle is damaged when it backs into a light pole.

Answer

The insured vehicle flips over on an icy road.

Answer

The insured vehicle is damaged in a parking lot by another vehicle's door.

Question 3

Which of the following is a primary characteristic of Medical Payments coverage (Part B) in a Personal Auto Policy?

Accepted Answer

It covers reasonable medical expenses for the insured and their passengers, regardless of fault.

Answer

It pays only if the insured is not legally responsible for the accident.

Answer

It has a high standard deductible that must be met first.

Answer

It covers medical expenses for occupants of the other vehicle involved in the accident.

Question 4

An insured with Uninsured Motorists (UM) coverage is seriously injured by a hit-and-run driver while jogging. How will the insured's Personal Auto Policy likely respond to the bodily injury claim?

Accepted Answer

The UM coverage will respond because a hit-and-run driver qualifies as uninsured, and the policy covers the insured as a pedestrian.

Answer

The claim will be denied because the insured was not occupying a vehicle.

Answer

The UM coverage will only pay if the at-fault driver is eventually identified and confirmed to be uninsured.

Answer

The claim will be covered under Medical Payments, but not Uninsured Motorists coverage.

Question 5

The standard territorial limits of a Personal Auto Policy include coverage for accidents that occur in which of the following locations?

Accepted Answer

The United States, its territories and possessions, Puerto Rico, and Canada.

Answer

Anywhere in the world.

Answer

The United States and Mexico only.

Answer

North America, including the United States, Canada, and Mexico.

Question 6

According to Part E - Duties After an Accident or Loss in a Personal Auto Policy, which of the following is a required duty of an insured?

Accepted Answer

Promptly notify the insurance company of the accident.

Answer

Admit fault if they believe they caused the accident to speed up the process.

Answer

Arrange for and authorize all vehicle repairs immediately.

Answer

Negotiate a settlement directly with the other party for minor damages.