State Farm P/C 9&10 Questions and Answers Graded A+

State Farm P/C 9&10 Questions and Answers Graded A+ Financial responsibility law Every state requires that each person be able to prove he is financially prepared if involved in an accident. Suppose your state requires minimum liability limits of 25/50/10. What is the name of that law? The loss is covered under an unendorsed policy. An insured rents a car while on vacation in Canada and causes an accident. What coverage is provided for this loss under the personal auto policy? Collision While backing her car into a parking space on a neighborhood street, Melanie struck a fire hydrant with her bumper. Which coverage under Melanie's personal auto policy (PAP) will cover the damage to the bumper? Part A. While driving to work, Leonard is eating his breakfast, reviewing his appointment book, and talking on his cell phone. He runs a red light and collides with a commuter van. The van's occupants are hospitalized. Which part of Leonard's personal auto policy covers the occupants' injuries and damage to the van? the occupant of the car struck by the insured The insured rearends another vehicle that is stopped at a red light. The driver of the car struck by the insured is badly injured. The insured, his daughter and her friend were in the car and were also injured. Part B of the insured's personal auto policy will pay medical expenses for all of the following EXCEPT: $10,000 The insured has an auto policy with liability limits of 30/60/10. He negligently runs off the road and causes $70,000 damage to an apartment building. How much will the policy pay for the damage to the building? No property can be denied coverage by a FAIR Plan. Which of the following statements about the FAIR Plan is NOT correct? collision Automobile comprehensive coverage insures all of the following perils EXCEPT reducing Coverage C limit to 40% of Coverage A. Premium credits for all of the following will lower the insurance premiums for the owner of a mobile home EXCEPT: Maggie, her older sister, who lives with Jane. Jane insures her car with ABC Insurers. Which of the following individuals best describes a family member on Jane's policy? Actual cash value or cost to repair or replace, whichever is less. Physical damage losses under the personal auto policy are reimbursed on what basis? Other than collision What part of the personal auto policy covers losses caused by malicious mischief, vandalism, hail, or floods? Silo Which of the following property may be insured under a flood policy issued by the NFIP? Vicarious liability. Which one of the following principles is used to describe liability resulting from the negligence of a person who uses an auto with the insured's permission? Funeral expenses for the insured Which one of the following would NOT be paid as supplementary payments under Part A of a personal auto policy? it provides thirdparty coverage. Personal injury protection (PIP) is a form of nofault auto insurance. All of the following characteristics of PIP are correct EXCEPT: Protection and indemnity insurance. Yacht policies provide physical damages and liability coverage. What is the liability section called? The driver's automobile policy under the property damage liability provisions. While driving down the street, an insured swerves to avoid a pedestrian, goes over a curb, and damages a neighbor's fence. Which of the following will pay for the repairs to the fence? Prevents the insured or injured person from collecting medical payments from more than one policy or coverage, such as uninsured motorist. What is a nostacking rule? 30 days after the date of application and payment of premium. When does flood insurance take effect? Arbitration. If a dispute arises over whether an insured is entitled to uninsured motorists coverage, what process is used to settle the dispute? UMPD If a vehicle is insured for collision, this coverage waives the deductible. What is this coverage? It is automatically covered Cecil sells his car and buys another one to replace it. How does the liability coverage in his personal auto policy apply to the replacement vehicle? Medical payments coverage Jane's sister, Maggie, who lives with Jane and just sold her car, drives Jane's sports car to a party. On the way home Maggie loses control of the car, hits a parked car, and rolls the car. Maggie dies as a result of her injuries. What coverage will reimburse Jane for Maggie's funeral expenses? Emergency program and the regular program. What are the two flood insurance programs that are available? motorcycles. All of the following vehicles can be insured under an unendorsed personal auto policy EXCEPT: Phillipsburg, St. Martin. The personal auto policy coverage applies to losses, accidents, or occurrences that take place during the policy period in all the following locations EXCEPT: