Insurance MCQ

Which of the following is an insured's duty in the event of loss under the PAP? a. Contact the at-fault party b. Call the police if legal papers are received c. Refer the claim adjuster to an attorney d. Promptly notify the police in the event of a hit-and-run accident Answer: d. Promptly notify the police in the event of a hit-and-run accident

Which statement is not correct about the Right to Recover Payment under the PAP? a. The Right to Recover is an insured's right b. The insured must reimburse the insurance company if the insured is paid by the other party c. The person who is paid a claim must give the insurance company the right to recover damages d. The right to recover involves going after the negligent party to pay for the insured's loss Answer: a. The Right to Recover is an insured's right

Under medical payments coverage, how long after an accident does the insured have coverage for resulting medical expenses? a. 4 years b. 3 years c. 1 year d. 5 years Answer: b. 3 years

Policyholder J hit a deer with his Honda. J has collision coverage with a $250 deductible and Other Than Collision coverage with a $50 deductible. The damage to J's car was $450. How much will the policy pay? a. Nothing b. $200 c. $150 d. $400 Answer: d. $400

Which of the following is not eligible for a Personal Auto Policy? a. A trailer being used as a farm wagon b. A 9-passenger station wagon c. A private passenger auto used as a taxicab d. A van that is used to haul gardening supplies for personal use Answer: c. A private passenger auto used as a taxicab

All of the following are considered uninsured motor vehicles, except: a. A vehicle that is being used as a residence b. A vehicle to which no liability policy applies c. A hit and run vehicle d. A vehicle to which the insuring company becomes insolvent Answer: a. A vehicle that is being used as a residence

What is the purpose of the Extended Non-Owned Coverage for a Named Individual endorsement? a. Coverage is extended 25 miles into Mexico b. Covers non-owned vehicles furnished for the insured's regular use c. Covers an individual who does not own a car d. Extends coverage for a leased vehicle Answer: b. Covers non-owned vehicles furnished for the insured's regular use

After an automobile policy has been in effect for 60 days, the insurer may cancel the policy for any of the following reasons, except: a. Non-payment of premium b. Material misrepresentation of information on the application by the insured c. Submission of four or more claims during a single policy period d. Suspension of the driver's license of the named insured's or household resident Answer: c. Submission of four or more claims during a single policy period

If an insurer non-renews an insured's policy for underwriting reasons, what is the minimum number of days' notice to the insured? a. 20 b. 30 c. 45 d. 60 Answer: a. 20

Which of the following is not a duty of the insured if the insured's vehicle is damaged when it hit a tree? a. Submit a proof of loss b. Call the police c. Promptly notify the insurance company d. Submit to a physical exam Answer: b. Call the police

The insurer's limit of liability for a vehicle damaged by a loss under Part D is which of the following? a. Actual cash value b. Replacement value c. The lesser of actual cash value and replacement value d. The greater of actual cash value and replacement value Answer: c. The lesser of actual cash value and replacement value

Comprehensive covers all of the following losses, except: a. Falling objects b. Theft c. Contact with a deer d. Rollover Answer: d. Rollover

An uninsured motor vehicle is any of the following, except: a. A company car b. A vehicle that does not have insurance c. A vehicle insured by an insolvent insurance company d. A vehicle with liability limits less than the state requirement Answer: a. A company car

Which of the following is covered under Part C - Uninsured Motorist Coverage? a. Punitive damages awarded for the insured b. Accident was caused by a hit-and-run driver c. The insured is also covered by Workers' Compensation d. A family member is struck by an insured vehicle Answer: b. Accident was caused by a hit-and-run driver

Which of the following uses of a vehicle is not excluded under the Medical Payments coverage? a. Insured uses a truck for incidental purposes b. A neighbor uses the insured's car without permission c. An insured drives a company car d. An insured rides a motorcycle Answer: a. Insured uses a truck for incidental purposes

A Medical Payments claim will be paid by the insurer within how many months from the date of the occurrence? a. 18 b. 24 c. 36 d. 60 Answer: c. 36

The limit of liability is the most paid by the insurer regardless of all of the following, except: a. Number of insureds b. Premiums shown c. Number of vehicles involved d. Amount of surcharges to be applied to policy Answer: d. Amount of surcharges to be applied to policy

Under Part D, Within how many days must an insured report the purchase of a new vehicle that is replacing an existing vehicle covered by collision coverage? a. 4 b. 5 c. 14 d. 15 Answer: c. 14

Each of the following is a Part A - Liability Coverage Supplementary payment, except: a. Payment for all defense costs b. $200 a day for loss of earnings due to an insurer request to assist in the trial c. $250 for the cost of a bail bond d. Premiums on appeal bonds Answer: a. Payment for all defense costs

A ____________ vehicle is a covered vehicle when Your Covered Auto is being repaired due to a covered loss. a. Substitute b. Replacement c. Temporary substitute d. Conditional Answer: c. Temporary substitute