RMIN 4000 UGA Test 3| Questions and Answers 100% Verified!
3 views 0 purchase
Course
RMIN 4000 UGA
Institution
RMIN 4000 UGA
RMIN 4000 UGA Test 3| Questions and AnswerAuto Insurance - ANSWER--6 or 12 month policy
-premiums usually paid monthly or quarterly
5 general types of auto coverage - ANSWER-1. liability
2. damage
3. uninsured motorist
4. medical payments
5. convenience coverage
Personal Auto Policy (PAP...
RMIN 4000 UGA Test 3| Questions and Answers 100% Verified!
Auto Insurance - ANSWER--6 or 12 month policy
-premiums usually paid monthly or quarterly
5 general types of auto coverage - ANSWER-1. liability
2. damage
3. uninsured motorist
4. medical payments
5. convenience coverage
Personal Auto Policy (PAP) - ANSWER---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? - ANSWER-•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 - ANSWER-damage to your vehicle
uninsured motorist coverage - ANSWER-3rd party without insurance causes BI to you or your passengers
medical payments coverage - ANSWER-BI to you or your passengers
Convenience Coverage - ANSWER-towing, rental reimbursement, etc.
Part A: Liability Coverage - ANSWER-•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? - ANSWER-•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 - ANSWER-•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 - ANSWER-•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 - ANSWER-•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 - ANSWER-•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 - ANSWER-•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? - ANSWER-•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 - ANSWER-•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 - ANSWER-•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? - ANSWER-• 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?" - ANSWER-•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") - ANSWER-•Insurer will pay for direct and accidental loss to a covered auto
•Will also pay for damage to a "nonowned auto"
oA vehicle you do not own but have permission to drive, or
oA "temporary substitute vehicle" as defined earlier
•Deductible applies (this is usually the only Part with a deductible)
•Two parts: Collision and Comprehensive ("Comp")
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller nursingismylife. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
