INSURING PERSONAL AUTO EX POSURES CISR 2023-2024 ACTUAL
EXAM 100 QUESTIONS AND CO RRECT DETAILED ANSWERS
(VERIFIED ANSWERS ) |AGRADE
Depending on the circumstances, a passenger injured in an automobile accident
may be able to recover under all of the following coverages EXCEPT:
- medical payments.
- collision.
- uninsured motorist.
D) liability. - ANSWER- The correct answer was - B: collision.
Explanation:
Collision coverage provides only physical damage coverage for the insured's vehicle. It protects against damage done to the covered auto by impact with another vehicle or an object. It also covers damage sustained if the car rolls over (is upset).
The commercial auto policy offers physical damage coverage. One of the coverages is comprehensive. All of the following causes of loss are specifically
covered under comprehensive EXCEPT:
- freezing.
- earthquake.
- theft.
D) flood. - ANSWER- ...The correct answer was - A: freezing.
Explanation:
Freezing is specifically excluded under comprehensive coverage. Other exclusions include nuclear explosion, radiation, war, racing, wear and tear, and blowout, punctures, or other road damage to tires.
Which of the following damages is covered Under Part D-Coverage for Damage to the Insured's Auto?
- Mechanical breakdown not resulting from total theft.
- Wear and tear.
- Flood. 1 / 3
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D) Freezing. - ANSWER- ...The correct answer was - C: Flood.
Explanation:
Part D-Coverage for Damage to the Insured's Auto provides other than collision (comprehensive) coverage and collision coverage. Other than collision coverage protects against almost all accidental damage, with the exception of coverage provided under collision, including fire, theft, explosion, earthquake, windstorm, missiles, falling objects, hail, water, flood, vandalism and malicious mischief, riot and civil commotion, glass breakage, and collision with birds or animals, wild or domestic. Damage from wear and tear, freezing and mechanical breakdown, and electrical breakdown (unless resulting from total theft of the auto) are excluded.Road damage to tires is also excluded.
Bobby, age 16, borrows his parents' car without their permission and gets into an accident. Which of the following statements about coverage under the parents' personal auto policy is CORRECT?
- Bobby is not covered for this accident because he used the car without
- Bobby is covered by his parents' policy because he is included in the definition
- Bobby is not covered because it was not his car.
- Bobby is covered by his parents' policy because he is a family member. -
permission.
of named insured.
ANSWER- ...The correct answer was - D: Bobby is covered by his parents' policy
because he is a family member.
Explanation:
Bobby is a family member and thus automatically covered under this family's PAP policy. Even though Bobby is using the car without permission, the exclusion pertaining to nonpermissive users does not apply to use of an owned auto by resident family members.
Under the medical payments coverage of a personal auto policy, the insurer pays for medical expenses and funeral services incurred within how many years from the date of an accident?
- Three.
- Five.
- One.
- Two. - ANSWER- ...The correct answer was - A: Three. 2 / 3
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Explanation:
Under Part B--Medical Payments Coverage, the insurer pays for reasonable expenses for necessary medical and funeral services incurred within three years from the date of an accident without regard to fault.
Jane insures her car with ABC Insurers. Which of the following individuals best describes a family member on Jane's policy?
- Robert, her ex-husband who moved out last week.
- Renee, a friend, who lives with Jane.
- Uncle Joe visiting from Texas.
- Maggie, her older sister, who lives with Jane. - ANSWER- ...The correct
answer was - D: Maggie, her older sister, who lives with Jane.
Explanation:
A family member is someone related to the named insured by blood, marriage, or adoption, who is a resident of the insured's household. Since Maggie is Jane's sister and is a resident of Jane's household, she would best fit the description of a family member under the policy.
Howard bought a car yesterday for his youngest son to drive to school and his job.
Under Howard's automobile policy, this car is considered a (n):
- uninsured automobile.
- temporary substitute automobile.
- owned automobile.
D) nonowned automobile. - ANSWER- ...The correct answer was - C: owned
automobile.
Explanation:
A newly acquired automobile is an owned automobile that must be an eligible vehicle. For any coverage except coverage for damage to your auto, this car will have the broadest coverage provided for any of the cars listed on the declarations until it is added to the policy. It must be insured within 14 days after the insured becomes the owner.
Steve meets with his agent to apply for an automobile insurance policy on his 2 personal cars. In reviewing the policy, Steve finds he is not willing to accept the
- / 3
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