Unit 8

Question 1

Personal Auto

Answer 1

. Casualty Coverages
# Liability
# Medical payments
# Uninsured/underinsured motorists
. Property Coverages
# Collision
# Other than Collision (comprehensive)

Question 2

Definitions

Answer 2

. You and your refer to the named insured shown in the declarations and the named insured’s
spouse. The spouse must reside in the same household as the named insured.
. Family member is any person related to the named insured or spouse who is a resident of the
named insured’s household. This includes those related by blood, marriage, or adoption and
includes a ward or foster child.
. Bodily injury means bodily harm, sickness, or disease, including resulting death.
· Occupying means:
# in a vehicle;
# upon a vehicle; or
# getting into, onto, out of, or off of a vehicle.
. Property damage means physical injury to, destruction of, or loss of use of tangible property.
. Covered auto includes private passenger autos, which are four-wheel motor vehicles and
pickup trucks, and vans that are under a certain weight and are not used for business purposes.
(Farming and ranching are not considered businesses.) The vehicles must be owned or leased
under a long-term contract of six months or more.

Question 3

in a vehicle;

Insured may cancel at

Answer 3

ANY time

Question 4

Insurer must provide written notice of

Answer 4

cancellation or nonrenewal.

Question 5

Policy Territory

Answer 5

. United States and its territories
· Canada
. Can add Mexico by endorsement

Question 6

Assigned Risk Plan

Answer 6

. High-risk insureds

. Assigned to an insurance company
. Usually only liability coverage

Question 7

Insureds

Answer 7

. Named insured and resident spouse
. Resident family members
. Any person who borrows a covered auto with the permission of any insured

Question 8

Supplementary (Additional) Payments

Answer 8

. BAILED

Question 9

Liability Exclusions

Answer 9

. Intentional injury or damage
. Injury to an insured
. Damage to property owned or transported by an insured
. Injury to an employee
. Using the vehicle as a taxi (carpool is OK)
. Use of the vehicle without permission
. Vehicles less than four wheels or not licensed for road use
. Vehicles used for racing

Question 10

Limits of Liability

Answer 10

. Split limits
# Separate limits for bodily injury
# Separate limit for property damage
. Combined single limit
. Limits vary by state
# The applicable liability limits for your state are located in your state-specific law
supplement.

Question 11

Financial Responsibility Laws

Answer 11

. State-required proof of ability to pay for damages
. Usually mandated auto liability insurance

Question 12

Out-of-State Liability Coverage

Answer 12

· Higher of:
# policy limits; or
# other state’s required limits