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Unit 8 - Personal Lines Insurance Exam Prep - Arizona Questions and Answers Latest Updated
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Unit 8 - Personal Lines Insurance Exam Prep - Arizona
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Unit 8 - Personal Lines Insurance ExamPrep - Arizona
True/False: Personal Auto Policies (PAP) include coverage for both casualty and
property. - answerTrue
What is covered under casualty? - answerLiability, medical payments, and damages
caused by uninsured or underinsured motorist.
True/False: Uninsured motorist do not include damages from a hit and run; those are
100% paid for by the inured. - answerFalse, hit and runs are covered by the uninsured
motorist insurance.
Name both types of property coverages on a Personal Auto Policies (PAP). -
answerCollision and Other than collision (AKA comprehensive coverage)
True/False: You and your refers to the named insured shown on the declarations page
and their resident spouse on a Personal Auto Policies (PAP). - answerTrue
True/False: For a Personal Auto Policies (PAP) family member refers to any person
related to the named insured or resident spouse by blood, marriage, ward, adoption, or
foster care. - answerTrue
True/False: Bodily injury includes bodily harm, sickness, and disease EXCLUDING
death. - answerFalse, death is also covered under BI
True/False: Occupying a vehicle specifically refers to siting in a vehicle ONLY. -
answerFalse, it also includes coming upon the vehicle, as well as getting into, on, out of,
or off a vehicle.
Property Damage - answerThe physical injury to, destruction of, or loss of use of a
tangible item.
True/False: Covered autos must be owned or leased under a long-term contract of a
YEAR or MORE to be covered under a Personal Auto Policies (PAP). - answerFalse,
the long-term contract MUST be a minimum of six months to be covered.
True/False: Insured and insurers can cancel a Personal Auto Policies (PAP) at ANY
time WITHOUT ANY notice. - answerFalse, insured can cancel WITHOUT notice,
insurers though must provide written notice to cancel or deny the renewal of a policy.
, Personal Auto Policies (PAP) policy territory is.... - answerUS (and its territories and
Canada; Mexico can be added by endorsement.
True/False: An assigned high-risk plan is for high risk insureds who get assigned to a
particular insurance company, which typically consists of just liability coverage. -
answerTrue
List the Insureds Covered on a Personal Auto Policies (PAP) - answerNamed Insured,
Named Insured's Resident Spouse, Their Resident Family Members, and anyone who
borrows a covered auto with permission of any insured.
List the liability exclusion on a Personal Auto Policies (PAP) - answerintentional injury or
damage, injury to the insured, damage to property owned /transported by insured, injury
to an employee, using a vehicle as a taxi (carpool is OK), used the vehicle without
permission, vehicles less than four wheels or not licensed for road use, and racing
vehicles.
True/False: The limits of liability under a Personal Auto Policies (PAP) are the SAME in
each state AND territory of the US. - answerFalse, limits vary from state to state.
True/False: ONLY 46 states have financial responsibility laws that require drivers to be
able to produce proof that they can pay for BI and PD if in an accident. - answerFalse,
ALL states have financial responsibility laws.
Out-of-State Liability Coverage - answerIs coverage protecting drivers who are not in
their home state. It provides coverage (to the higher limit) of the insureds policy limit or
the other's states required limit.
Insurance Clause - answerWhere you have two insurers splitting the cost of the claim.
The amount insurance A vs. insurance B pay is determined by the following formula:
policy limits (insurance A for example) divided by the total limits of both policies
together; then multiply that percentage by the total cost of the loss. This is the amount
insurance A pays and the difference between this and the total cost is what insurance B
pays. An example is if someone borrows a neighbor's that neighbor's insurance policy is
policy A in this case; the other is the driver's (or person borrowing the car) insurance.
What is covered under Policy B of a Personal Auto Policies (PAP)? - answerPolicy B
covers all necessary medical and funeral services incurred within three years of the
date of the injury (regardless of fault).
In Section B Medical Payments (AKA 1st Party Benefits), covers who in an accident and
is the coverage only in effect while in the vehicle covered under the Personal Auto
Policies (PAP)? - answerThis section covers medical payments (up to funeral
expenses) for the insured and passengers. This coverage is also applied to protect the
insured and their family as pedestrians.
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