Question 1

named insured

Accepted Answer

listed in the Declarations, and includes the spouse if a resident of the same household.

Question 2

family member

Accepted Answer

a person related to the named insured by blood, marriage, or adoption, including a ward or foster child who is a resident of the household.

Question 3

covered auto

Accepted Answer

is any vehicle shown in the Declarations, a newly acquired auto, any trailer the insured owns, or a non-owned auto or trailer while being used as a temporary substitute vehicle.

Question 4

temporary substitute vehicle

Accepted Answer

is a non-owned vehicle used in place of an insured vehicle that is
out of normal use due to breakdown, repair, servicing, loss, or destruction.

Question 5

newly acquired auto

Accepted Answer

one to which the named insured takes title and either replaces an
existing vehicle owned by the named insured, or a vehicle that increases the total number of vehicles owned by the named insured.

Question 6

Supplementary Payments

Accepted Answer

under Part A – Liability Coverage include the cost of bail bonds,
appeal bonds, post-judgment interest, loss of earnings, and reasonable expenses while assisting the insurer in the defense of a claim.

Question 7

Part A Exclusions

Accepted Answer

include bodily injury or property damage intentionally caused by an Insured; property in the insured’s care, custody, and control; bodily injury to an insured’s employee while working for the insured; using a vehicle as public or livery conveyance; workin

Question 8

Part A Liability

Accepted Answer

does not apply to vehicles with fewer than four wheels, vehicles that are owned but not insured, uninsured vehicles owned by family members; vehicles furnished for the regular use of the named insured or family members; and vehicles inside a racing facili

Question 9

maximum limit paid

Accepted Answer

under Part A – Liability Coverage is shown on the policy’s Declarations and applies per accident for all bodily injury and property damage arising from one accident, including damages for care, loss of services, and death.

Question 10

stacked

Accepted Answer

If a loss is covered under more than one Part of the policy, payment will not be duplicated or stacked.

Question 11

When a covered auto is driven outside the state in which it is principally garaged

Accepted Answer

Part A – Liability Coverage extends to provide coverage required by the financial responsibility or
compulsory insurance laws of that state or Canadian province.

Question 12

If other insurance applies at the time of the loss

Accepted Answer

the personal auto policy will only pay its share
of the loss in the proportion the policy’s limit bears to all insurance in place.

Question 13

under Medical Payments coverage

Accepted Answer

the insurer will pay reasonable expenses incurred within 3
years of the accident. The limit applies per person and payments are only made for necessary medical and funeral services caused by the accident.

Question 14

Medical payments coverage applies

Accepted Answer

regardless of fault, to any insured occupying any auto or as
a pedestrian when struck by a motor vehicle designed for use mainly on public roads.

Question 15

Part B, Medical Payment exclusions

Accepted Answer

an insured occupying a vehicle with fewer than 4  wheels, using a vehicle as a public or livery conveyance or a residence, struck by an uninsured  vehicle owned or furnished to an insured family member, using a vehicle without the reasonable belief of en

Question 16

Part C – Uninsured Motorists Coverage (UM) provides

Accepted Answer

insurance to persons injured in accidents caused by another party who is legally responsible for injuries to an insured that arise out of the ownership, maintenance, or use of an uninsured motor vehicle.

Question 17

Excluded under Part C

Accepted Answer

are accidents involving an owned vehicle that is uninsured, a vehicle while being used as a public or livery conveyance, the insured using a vehicle without the reasonable belief of entitlement to drive it, using a vehicle while engaged in business, when

Question 18

The process of arbitration

Accepted Answer

is used when the insurer and the insured do not agree on the recovery of damages or the amount recoverable by the insured. Each party selects an arbitrator who then jointly select a third arbitrator who determines the insured’s amount of damages.

Question 19

Underinsured Motorists Coverage (UIM)

Accepted Answer

covers the insured against drivers who have auto liability insurance but the coverage limits are inadequate. UIM coverage will pay the amount over the at-fault driver’s coverage up to the UIM limit.

Question 20

Part D – Coverage for Damage to Your Vehicle

Accepted Answer

also known as the physical damage coverages 
collision and other than collision, pays for direct and accidental damage, regardless of fault, to 
the insured’s covered vehicles and non-owned autos.

Question 21

Collision

Accepted Answer

is the upset of the covered vehicle or a non-owned auto or its impact with another vehicle or object.

Question 22

Other Than Collision (OTC, Comprehensive)

Accepted Answer

provides open perils coverage for loss caused by 
any peril that is not excluded in the policy.

Question 23

non-owned auto

Accepted Answer

is any private passenger auto, pickup, van, or trailer not owned by, furnished to, or available for the regular use of the named insured or a family member, while being used by the named insured or a family member

Question 24

Transportation expenses coverage pays for

Accepted Answer

the cost of transportation expenses incurred as a result of a covered collision or other than collision loss. No deductible applies and the limit of coverage is up to $20 per day, or a total of $600.

Question 25

If a loss is caused by a total theft of the covered auto or a non-owned auto

Accepted Answer

the insurer will only pay transportation expenses incurred during the period that begins 48 hours after the theft and ends when the auto is returned to use or the insurer pays for the loss. Payments begin 24 hours after loss caused by all other covered p

Question 26

Part D exclusions

Accepted Answer

an insured vehicle being used as a public or livery conveyance; 
damage as a result of wear and tear; freezing; mechanical breakdown; road damage to tires; war or nuclear hazard; tapes, records, disks, or other media; and electronic equipment unless it’

Question 27

The Part D limit of liability for loss is

Accepted Answer

the lesser of the actual cash value (ACV) of the vehicle or 
the amount necessary to repair or replace the vehicle with another of like kind and quality. Part D does not pay for betterment

Question 28

Part E – Duties After an Accident or Loss

Accepted Answer

include prompt notification of any claims and legal papers received; cooperation in the claims investigation and settlement; submission to a physical exam; authorization for the insurer to obtain copies of medical reports and records; submission 
of a r

Question 29

Part F – General Provisions

Accepted Answer

include bankruptcy or insolvency of an insured; changes to the 
policy; fraud; legal action against the insurer; right to recover payment; policy period and territory; policy termination provisions; transfer of the insured’s interest in the policy; and

Question 30

Part F – General Provisions

Accepted Answer

Selected endorsements for the personal auto policy include Extended Non-Owned Coverage for a Named Individual, Towing and Labor Costs Coverage Endorsement, Miscellaneous Type 
Vehicle Endorsement, Named Non-owner Coverage for a Named Individual, Excess

ch 6

Personal Auto Policy

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