Deck 17: Automobile Insurance

Question 1

Liability, UM, and UIM coverage is required in "fault" states.

Answer 1

False

Question 2

The carrier providing initial coverage for all damages up to the limits of the policy is said to be the coverage provider.

Answer 2

primary

Question 3

is the right of an insurer to recover against the responsible party in the name of its insured for monies that it has paid.

Answer 3

Subrogation

Question 4

Coverage for reimbursement for repair or replacement of vehicles damaged in an accident is called coverage.

Question 5

Secondary coverage applies to those situations where the insured owns more than one vehicle.

Question 6

Money received from medical payment coverage can never be used to offset any other funds that the insured might recover.

Question 7

In many policies, disputes with respect to medical payments, uninsured motorist and underinsured motorist coverage are not tried in court but are subject to compulsory .

Question 8

An insured has the right of subrogation against third parties.

Question 9

Split-limits coverage providing $15,000 per person, $30,000 per accident, and $10,000 for property damage would be written as $15,000/$30,000/$10,000.

Question 10

UIM coverage stands for uninsured motorist coverage.

Question 11

coverage provides reimbursement to the insured for losses to his or her vehicle or possessions in the vehicle other than those relating to collision claims.

Question 12

If a third party responsible for injuries has insurance, but the limits of that insurance is insufficient to compensate the insured, the insured may look to his or her own motorist coverage if he or she has purchased it to compensate him or her for the difference.

Question 13

If an insured is injured by a motorist with no insurance, he or she may look to his or her own motorist coverage to provide compensation for his or her injuries.

Question 14

If an insurer attempts to issue a policy with limits less than the statutory requirements, the courts will the policy to make it provide statutorily mandated minimum limits.

Question 15

A(n) policy comes into effect after the underlying policy limits have been exhausted.

Question 16

An insured is said to attempt to "stack" policies when he or she has more than one policy covering the same event.

Question 17

When an insurance carrier pays monies to its insured but has a right to go against the third party responsible for those losses, it is said to be to the rights of its insured.

Question 18

An motorist provision in an insurance policy provides coverage for losses caused by an uninsured motorist.

Question 19

An umbrella policy provides coverage for only those damages resulting from windstorm, rainstorm, hailstorm, or snowstorm.

Question 20

Collision coverage provides for reimbursement for repair of, or replacement of, a vehicle.

Question 21

Some have proposed prohibiting uninsured motorists from recovering damages they incur.

Question 22

Some states are prevented from experimenting with a no-fault system because their constitutions prevent interference with citizens' right to sue.

Question 23

All states today have some form of a no-fault system.

Question 24

Most states require that a vehicle owner maintain uninsured motorist coverage on his or her vehicle in order for that person to lawfully drive on public roadways.

Question 25

In some ways, the no-fault system closely parallels the workers' compensation system.

Question 26

An insured can get reimbursement for damage to the windshield of his or her vehicle through his or her comprehensive coverage.

Question 27

Insureds cannot be required by statute to purchase minimum amounts of benefits.

Question 28

What is "no-fault" insurance?

Question 29

Give an example of when an umbrella policy might be used.

Question 30

The right of subrogation allows an insurer to institute suit against the responsible third party in the name of the insured to collect amounts paid by the insurer to the insured.

Question 31

The insurance coverage for the driver of the vehicle is said to be the primary coverage for the vehicle if the driver is not the owner.

Question 32

Comprehensive coverage provides reimbursement for losses to a vehicle, or its contents resulting from causes other than a collision.

Question 33

In a no-fault system, an injured insured does not retain the right to sue for intentional injuries or for injuries caused by intoxicated drivers.

Question 34

The no-fault experiment has not been particularly successful in some states.

Question 35

Most states do not require that a vehicle owner have liability insurance to drive the vehicle on public roadways.

Question 36

Purchasing insurance coverage above the mandatory minimum limits for liability, uninsured, and underinsured motorist coverages is a waste of money.

Question 37

An uninsured motorist is always a motorist who has no policy of liability insurance whatsoever.

Question 38

In some states, an injured insured has a right to sue the responsible party if the damages exceed a particular amount.

Question 39

The no-fault system is a very stable system.

Question 40

Most medical payment, uninsured, and underinsured motorist coverages require arbitration in the event of a dispute.

Question 41

What is the difference between comprehensive and collision coverage?

Question 42

Describe the process used in the selection of arbiters for a dispute regarding automobile insurance coverage.

Question 43

What is the difference between primary and secondary coverage?

Question 44

Why should an insured be circumspect when purchasing accessory coverages?

Question 45

For what reason might a court reform an insurance policy?

Question 46

How does no-fault compare to workers' compensation?

Question 47

What must an insurer do if it decides to terminate a policy?

Question 48

What is the purpose of UIM coverage?

Question 49

If the award is not binding, what are the parties entitled to?

Question 50

Give an example of stacking of claims.

Question 51

What are the requirements in most states regarding UM coverage?

Question 52

Under what conditions is an arbitration award not binding?

Question 53

Which coverage is considered primary when the insured is injured in a vehicle owned by someone else?

Question 54

What is a coordination of benefits provision?

Question 55

Why has no-fault insurance not been particularly successful in some states?

Question 56

Why is it important to purchase adequate UM coverage?

Question 57

What is the difference between an actual cash value policy and a replacement cost policy?

Question 58

What is the purpose of no-fault insurance?

Question 59

What is the purpose of subrogation?

Question 60

Describe two situations in which an insurer would be entitled to terminate an insured's policy.

Question 61

What does an injured insured gain by giving up the right to sue?