Motor Vehicle Division Insurance Requirements 3

Question 1

What is Medical Payments (MedPay) coverage?

Accepted Answer

Coverage that pays medical expenses for you and your passengers regardless of fault

Answer

Coverage that pays only the other driver's medical bills after an accident

Answer

Insurance that covers long-term disability resulting from a crash

Answer

A government program that supplements auto insurance for senior drivers

Question 2

How long are drivers typically required to maintain an SR-22 filing after a qualifying offense?

Accepted Answer

3 years

Answer

6 months

Answer

1 year

Answer

10 years

Question 3

Which additional coverages do lenders typically require when a vehicle is financed?

Accepted Answer

Both collision and comprehensive coverage

Answer

Uninsured motorist coverage only

Answer

Medical payments coverage only

Answer

SR-22 filing and liability coverage

Question 4

What is the primary purpose of gap insurance?

Accepted Answer

To cover the difference between a vehicle's actual cash value and the amount still owed on a loan if the car is totaled

Answer

To provide coverage during a gap caused by a lapsed policy

Answer

To fill gaps in liability coverage between two separate policies

Answer

To provide temporary coverage when switching from one insurer to another

Question 5

What do financial responsibility laws require of vehicle owners and drivers?

Accepted Answer

To demonstrate the ability to pay for damages caused to others through required insurance or other approved means

Answer

To pay all vehicle-related taxes and fees on time

Answer

To keep detailed financial records for all vehicle-related expenses

Answer

To have a minimum annual income before being eligible for a driver's license

Question 6

Which of the following is true about electronic proof of insurance?

Accepted Answer

Most states now accept electronic proof of insurance displayed on a smartphone

Answer

It is never accepted by law enforcement anywhere in the United States

Answer

It is only valid if the insurer's app was opened within the last 30 days

Answer

Electronic proof requires installation of a special government-issued application

Question 7

Which of the following actions could most likely result in cancellation of your auto insurance policy?

Accepted Answer

Repeated traffic violations or consistent non-payment of premiums

Answer

Filing a single minor claim within a three-year period

Answer

Moving to a different zip code within the same state

Answer

Adding a licensed family member as a driver on the policy