Question 1

Mandy's car is stolen and she files a claim with her PAP insurer. Which of the following items will not be paid for by her Other than Collision coverage?

Accepted Answer

Other than Collision coverage (also known as Comprehensive coverage) typically does not cover personal items left inside the vehicle at the time of theft. Therefore, Mandy's cell phone with a built-in GPS navigational system would not be covered under this coverage. However, the actual cash value of the car and any factory-installed equipment (such as the GPS navigational system) would be covered under Other than Collision coverage.

Question 2

The PAP only covers losses that occur while the automobile is within the United States, Canada, or Mexico, or being transported between ports thereof.

Accepted Answer

The Personal Auto Policy (PAP) typically covers losses that occur within the United States, its territories and possessions, Puerto Rico, and Canada, but not Mexico.

Question 3

Robert drove his car from California to New Mexico. He had an accident right after crossing the border into New Mexico. His PAP provided coverage for this incident.

Accepted Answer

PAP (Personal Auto Policy) typically provides coverage for accidents that occur anywhere in the United States, including when crossing state borders. Therefore, Robert's PAP would likely provide coverage for his accident in New Mexico.

Question 4

A PAP may be canceled at any time for any reason if the insurance company no longer wants to insure you.

Accepted Answer

Insurance companies must follow specific regulations and provide valid reasons, such as non-payment or fraud, to cancel a Personal Auto Policy (PAP).

Question 5

Underinsured Motorist coverage:

Accepted Answer

Underinsured Motorist coverage is not the same as Uninsured Motorist coverage, is not automatically included in the Personal Auto Policy's (PAP) Part C coverage, and does not pay for property damage the insured causes to victims who have no coverage. It is designed to protect the insured from drivers who have insufficient insurance coverage.

Question 6

Property Damage Liability of the Personal Automobile Policy provides coverage to reimburse you if your automobile is damaged.

Accepted Answer

Property Damage Liability of the Personal Automobile Policy provides coverage for damages that you cause to someone else's property, not for damages to your own automobile.

Question 7

PAP coverage A, which includes Property Damage Liability, provides coverage to reimburse you if your automobile is damaged.

Accepted Answer

PAP Coverage A, which is also known as Liability Insurance, covers damages or injuries that you cause to other people or their property. It does not provide coverage for damages to your own automobile.

Question 8

The PAP's coverage territory is the USA, Puerto Rico, U.S. Territories and Possessions, and countries bordering the USA.

Accepted Answer

The Personal Auto Policy (PAP) typically covers the USA, Puerto Rico, U.S. Territories and Possessions, and Canada, but not all countries bordering the USA.

Question 9

When you borrow someone's car and wreck it, you have the option of letting your automobile insurance pay on a primary basis for the accident.

Accepted Answer

Your automobile insurance typically acts as secondary coverage when you borrow someone else's car, meaning the car owner's insurance is primary and yours may cover any remaining costs.

Question 10

If you rent a car while on vacation, you have coverage for any collision damage to the rental car under your own PAP, assuming you have purchased such coverage on your owned automobiles.

Accepted Answer

Many Personal Auto Policies (PAPs) provide coverage for collision damage to rental cars if you have purchased collision coverage on your owned automobiles. However, it is important to check with your insurance provider to confirm that this coverage extends to rental cars, as policies may vary. Additionally, there may be limitations or exclusions to coverage, such as the type or value of the rental car or the location of the rental.

Question 11

You collide with another vehicle and the accident is your fault. You may collect for damages to your vehicle, less the deductible, from your insurance company under Coverage D, Collision, if a premium for Collision has been paid.

Accepted Answer

Coverage D, Collision, provides coverage for damages to your vehicle when in a collision, regardless of fault. However, if the accident is your fault, your insurance company may raise your premium at renewal time. Additionally, you will be responsible for paying the deductible before the insurance company pays for the damages.

Question 12

Your PAP's Medical Payments coverage will pay for your bodily injuries if you get hit by a car as a pedestrian.

Accepted Answer

Medical Payments coverage typically covers medical expenses resulting from bodily injury sustained in an accident, regardless of who is at fault. As a pedestrian hit by a car, you would be covered by this type of coverage.

Question 13

Meghan has a PAP on 3 cars, and, she owns a fourth car on which no coverage has been purchased. Which of the following persons are covered by Meghan's PAP assuming they are driving the uninsured car?

Accepted Answer

Under a Personal Auto Policy (PAP), coverage typically extends to the insured vehicles listed on the policy. If Meghan has not purchased coverage for the fourth car, then none of the individuals mentioned would be covered while driving that uninsured vehicle.

Question 14

Your vehicle is damaged by another vehicle and the accident is the fault of the other driver. You may collect for damages to your vehicle, less the deductible, from your insurance company under Coverage D, Collision, if a premium for Collision has been paid.

Accepted Answer

This is correct as Coverage D, Collision, covers damages to your vehicle caused by a collision with another vehicle, regardless of fault. If the accident is the fault of the other driver, your insurance company will pay for the damages, less your deductible.

Question 15

All of the following would be paid under the PAP's Other than Collision coverage except:

Accepted Answer

The "Other than Collision" coverage, also known as comprehensive coverage, typically covers events like theft, vandalism, natural disasters, and animal collisions. However, skidding on ice and hitting a tree is considered a collision, not an "Other than Collision" event.

Question 16

Claims paid under the PAP's "Collision Coverage" are usually considered to be the insured's fault.

Accepted Answer

Collision coverage typically applies when the insured driver is at fault for an accident. This type of coverage pays for damage to the insured vehicle caused by a collision with another vehicle or object.

Question 17

To have your bodily injuries covered under your Uninsured Motorist Coverage, you must have been at fault in the auto accident that caused your bodily injuries.

Accepted Answer

This statement is false. Uninsured Motorist Coverage is designed to provide coverage for bodily injuries and property damage sustained in an accident caused by an uninsured, underinsured, or hit-and-run driver, regardless of who is at fault.

Question 18

When you have an auto accident that is your fault, your PAP's Liability coverage will pay for all of the following except:

Accepted Answer

Liability coverage under your PAP will pay for bodily injuries and property damage caused to others as a result of your at-fault accident. However, it typically does not cover bodily injuries sustained by members of your own household who were riding in the vehicle at the time of the accident.

Question 19

Uninsured Motorist coverage usually provides property damage coverage to the insured for damages to his auto caused by an insured motorist.

Accepted Answer

Uninsured Motorist coverage typically provides coverage for bodily injury caused by an uninsured driver, not property damage to the insured's vehicle. Property damage coverage is often offered under a different part of the policy or as an optional coverage.

Question 20

Financial responsibility laws legally require every driver to purchase automobile insurance.

Accepted Answer

Financial responsibility laws require drivers to prove they can pay for damages in the event of an automobile accident, which can often be satisfied through purchasing automobile insurance, but alternatives like bonds or self-insurance are also options in some jurisdictions.

Quiz 12: The Personal Auto Policy