Personal Automobile Policies Flashcards
6 cards from real P&C practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Personal Automobile Policies flashcards as text
Personal Injury Protection (PIP) coverage is primarily associated with:
Answer: No-fault auto insurance states, where PIP pays the insured's own medical bills and lost wages regardless of fault
PIP is the coverage required in no-fault auto insurance states; it pays for the insured's medical expenses, lost wages, and sometimes funeral costs and essential services regardless of who caused the accident.
What is the purpose of a 'named non-owner policy' in auto insurance?
Answer: To provide liability coverage to an individual who does not own a car but regularly drives non-owned vehicles
A named non-owner policy provides personal auto liability coverage to an individual who does not own a vehicle but occasionally or regularly drives vehicles they do not own, such as rentals or borrowed cars.
Under the PAP, which of the following situations would typically NOT be covered under Part A (Liability)?
Answer: The insured intentionally drives into a neighbor's fence after an argument
Intentional acts are excluded from liability coverage; an insured who deliberately causes damage cannot collect under the policy, since insurance is designed to cover accidental losses.
Under a personal auto policy, which party is covered for a loss that occurs while the named insured's covered auto is being used by a mechanic test-driving the vehicle?
Answer: The named insured's PAP generally excludes coverage for vehicles used by auto repair shops, deferring to the shop's garagekeepers and garage liability coverage
The PAP typically excludes coverage when a covered auto is in the custody of someone in the auto business (repair shop, dealer) who is using it in connection with their business, deferring to the garage's commercial insurance.
The 'other insurance' provision in a PAP typically provides that coverage for a non-owned auto is:
Answer: Excess over any other valid and collectible insurance on the non-owned vehicle
When an insured drives a non-owned auto (such as a rental or borrowed car), the PAP's liability coverage is typically excess over the primary coverage that applies to the vehicle itself.
Which of the following is generally NOT covered under the comprehensive (other-than-collision) portion of a PAP?
Answer: Collision with another vehicle
Collision with another vehicle is specifically defined as a collision loss and is covered under Part D collision coverage, not under comprehensive (other-than-collision) coverage.