RMIN 4000 UGA test 3 Questions and Answers well Explained Latest 2024/2025 Update 100% Correct.
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Course
RMIN 4000 UGA
Institution
RMIN 4000 UGA
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...
RMIN 4000 UGA test 3
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 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.
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 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
.
Auto Insurance - -6 or 12 month policy
-premiums usually paid monthly or quarterly
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)
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