Personal Automobile Insurance With Completely Solved Answers
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Personal Automobile Insurance
Institution
Personal Automobile Insurance
Personal Auto Policy (PAP) - ANSWER-Auto policy that provides property and liability coverage for both owned and non-owned autos of the insured.
This policy is sold primarily to cover individually owned private passenger automobiles. it can be issued for a term of one year or less.
An insuran...
Personal Automobile Insurance With Completely
Solved Answers
Personal Auto Policy (PAP) - ANSWER-Auto policy that provides property and liability
coverage for both owned and non-owned autos of the insured.
This policy is sold primarily to cover individually owned private passenger automobiles.
it can be issued for a term of one year or less.
An insurance policy that covers an individual or a family against loss exposures arising
out of the ownership, maintenance, or use of automobiles.
Personal Auto Policy (PAP) Parts - ANSWER-Part A - BI + PD Liability (M)
Part B - Medical Payments (O)
Part C - S.U.M Supplementary Uninsured Motorists
Part C 1. - U.M Uninsured Motorists (M)
Part C 2. - U.I.M Under Insured Motorists (O)
Part D - Damage to your Auto (O)
Part D 1. - Collision
Part D 2. - Other than Collision (Comprehensive fire and theft)
Personal Injury Protection (PIP/No-fault)
1. Basic Injury Protection (BIP) (M)
2. Optional Basic Economic Loss (O)
3. Additional BIP (O)
4. Towing and labor (O)
5. Extended Transportation Expense (O)
*M=Mandatory
*O=Optional
Part A - BI + PD Liability (M) - Minimum limits - ANSWER-25/50/10 (in thousands) -
Dual or Split limits
minimum $60,000 CSL/SL (Combined single limit/single limit) for all BI and PD in any
one accident.
60 = 50 + 10
25/50 = B.I. (Bodily Injury)
25 - Per person (most any one person will be paid)
50 - Per accident (for 2 or more the most that will be paid out, but still no one person
can get paid out more than 25)
, 10 = P.D. Property damage (Most that will be paid out)
Part C - S.U.M Supplementary Uninsured Motorists
Part C 1. - U.M Uninsured Motorists (M)
Part C 2. - U.IM. Under Insured Motorists (O) - ANSWER-Can be = or less than part A
but not greater
Personal Injury Protection (PIP/No-fault)
1. Basic Injury Protection (BIP) (M) - ANSWER-$50,000 per person (aggregate)
Definitions - ANSWER-1. You and your (aka NAMED INSURED) - The person named in
item number 1 of the policy declarations including a spouse if a resident of the same
household
2. We, us and our - The Insurance Company providing the coverage
3. Your covered Auto
a. Any vehicle shown in the declarations
b. Any newly acquired auto
c. Any trailer owned by the insured
d. Any non-owned auto or trailer while used as a temporary substitute for any other
vehicle described in this definition which is out of normal use because of its breakdown,
repair, servicing, loss, or destruction
NOTE*1: a loaner when the insured's car is the garage for the repairs is an example of
a temporary substitute automobile
NOTE*2: Under this definition not all non-owned autos are covered autos.
4. Newly acquired auto - means any of the following vehicles you become the owner of
during the policy period
a. A private passenger auto (any vehicle up to 10,000lbs)
b. A pick-up truck or van that is predominately used for non-business purposes
c. Replacement vehicle - If a newly acquired auto replaces one shown in the
declarations coverage is provided without your having to ask the insurance company to
insure it for the rest of the policy period (don't have to tell insurance company you are
replacing your vehicle unless you have Part D insurance)
d. Additional acquired vehicle - if a newly acquired auto is in addition to any shown in
the declarations it will have the broadest coverage now provided for any vehicle shown
in the declarations. The insured MUST notify the company to insure and additional
acquired auto within 14 days after they become the owner. If the insured asks the
company to insure a newly acquired auto, after 14 days, coverage will begin on the date
of the request.
5. Family member - Is any person related to the named insured by blood, marriage
Coverage for damage to your auto (Physical damage coverage) (O) - ANSWER-For a
newly acquired auto - begins on the date you become the owner if
1. The newly acquired auto REPLACES ONE shown in the declarations
2. The company provided that coverage on the vehicle you replaced for at least 12-
months prior to the date of replacement. Additionally you must ask the company to
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