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RMIN 4000 UGA test 3|105 Questions & Answers 2024
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RMIN 4000 UGA test 3|105Questions & Answers 2024
Auto Insurance - --6 or 12 month policy
-premiums usually paid monthly or quarterly
- 5 general types of auto coverage - -1. liability
2. damage
3. uninsured motorist
4. medical payments
5. convenience coverage
- Personal Auto Policy (PAP) - ---3rd party coverages (payments to someone
else):
•Part A: Liability Coverage (required by state)
--1st party coverages (payments to you):
•Part B: Medical Payments Coverage
•Part C: Uninsured Motorists Coverage
•Part D: Coverage for Damage to Your Auto
--Other provisions:
•Part E: Duties after an Accident or Loss
•Part F: General Provisions
- What vehicles are covered? - -•Any vehicle shown in the declarations
•A newly acquired vehicle (notify insurer ASAP, definitely within 14 days)
•A trailer owned by the named insured
•A temporary substitute vehicle, which is a non-owned auto or trailer used
temporarily because of mechanical breakdown, repair, servicing, loss, or
destruction of a covered vehicle
- damage coverage - -damage to your vehicle
- uninsured motorist coverage - -3rd party without insurance causes BI to
you or your passengers
- medical payments coverage - -BI to you or your passengers
- Convenience Coverage - -towing, rental reimbursement, etc.
- Part A: Liability Coverage - -•Required by state law
•There is a duty to own, maintain and operate your vehicle in a manner that
does not injure others or damage their property.
•If you fail in that duty - even accidentally - you are responsible for injuries /
damages to others.
,•Insuring agreement- insurer pays any damages for PI or BD for which any
insured is legally responsible because of an auto accident
- Part A: Who is covered? - -•The named insured and any resident family
member
•Any person using the named insured's covered auto with permission
•Any person or organization legally responsible for any insured's use of a
covered auto on behalf of that person or organization
oEx: Employer is sued if you get in an accident while on a work trip
oDoes not apply if you're driving a company car
- Part A: Relevant Exclusions - -•Intentional injury or damage
•Property owned or transported by the insured
•Property rented, used, or in the insured's care
•Use as a public or livery conveyance
•Using a vehicle without reasonable belief the person is entitled to do so
•Vehicle with fewer than four wheels
•Vehicle furnished for the named insured's regular use
- Part A: Limits - -•Split limits: limits for BI per person, BI per accident, and
PD are stated separately (BI pp/BI pa/PD)
•Minimum limits in GA: 25/50/25
o$25,000 BI per person
o$50,000 BI per accident
o$25,000 PD per accident
•Is this enough? If you have insufficient liability limits...
oSeize assets
oGarnish up to 25% of wages
- Defense Costs - -•Defense costs can be huge. Good thing the Liability
Section covers loss IN ADDITION to the policy limits.
•This means that the costs of defense will not erode the coverage limits
available for payment of claims.
•But, the duty to defend ENDS when limits have been exhausted through
actual payment of claims.
- Part A: Out-of-State Coverage - -•If you have minimum limits in your state
and you get in an accident in another state with higher minimum limits the
PAP automatically provides higher limits.
- Part B: Medical Payments - -•Covers all reasonable medical and funeral
expenses incurred by an insured in an accident
•The named insured and family members are covered:
oWhile occupying any motor vehicle, or
oAs pedestrians when struck by a motor vehicle
, •Other persons occupying a covered auto are covered, but only in an owned
vehicle
•Usually low limits (~$5,000)
- Part B: What's the Point? - -•This pays regardless of fault.
•Pays some medical costs of driver, even if it is driver's negligence.
•It may be difficult to determine fault at time of accident, this will provide
initial treatment.
•Once fault is determined, amounts usually paid out of the negligent party's
Part A.
- Difference between Part A and Part B - -•Do not mistake Part B Med Pay
with paying Medical Expenses for Bodily Injury in Part A.
•Part A will pay for Medical Expenses (and Loss of Income, etc.) to OTHERS IF
YOU ARE LIABLE because of negligence.
•Part B will pay for Medical Expenses REGARDLESS OF FAULT but only for
NAMED INSURED & Family Members, as well as, anyone occupying the
Covered Vehicle.
- Part C: Uninsured Motorists Coverage - -•Uninsured motorists coverage
pays for the bodily injury caused by an uninsured motorist
oThe uninsured motorist must be legally liable
oLimit for any single accident is the amount shown in the declarations
•Underinsured motorists coverage can be added to the PAP to provide more
complete protection
oIn general, the maximum amount paid is the underinsured motorist's
coverage limit stated in the policy less the amount paid by the negligent
driver's insurer
- Part C: Why do we need this? - -• A compulsory insurance law requires
motorists to carry at least a minimum amount of liability insurance before
the vehicle can be licensed or registered.
• The purpose of the law is to provide greater protection against uninsured
drivers because motorists must provide evidence of financial responsibility
before an accident occurs.
- Part C: Who is an "uninsured motorist?" - -•A motor vehicle or trailer for
which no bodily injury liability insurance policy applies at the time of the
accident
•An insured vehicle with less coverage than the amount required by the
state's financial responsibility law
•A hit-and-run vehicle
•A vehicle covered by an insurer that denies coverage or becomes insolvent
- Part D: Coverage for Damage to Your Auto ("Collision & Comp") - -•Insurer
will pay for direct and accidental loss to a covered auto
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