FIN 341 EXAM 1 EXAMINATION TEST PAPER
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Temporary substitute vehicle. Answer: a nonowned auto or trailer
used temporarily because of mechanical breakdown, repair,
servicing, loss, or destruction of a covered vehicle
◉ True. Answer: (T/F)
Liability coverage (Part A) is the most important part of the PAP.
◉ Part A: Liability Coverage. Answer: protects a covered person
against a suit or claim arising out of the ownership or operation of a
covered vehicle
◉ Split limits. Answer: the amounts of insurance for bodily injury
liability and property damage liability are stated separately
◉ split. Answer: The PAP policy is typically written with _______
limits.
,◉ Split limits of 250/500/100 means that you have. Answer: -A
maximum amount of $250,000 for bodily injury to each person for
any one accident
-A maximum amount of $500,000 for the bodily injury to all persons
resulting from any one accident
-A maximum amount of $100,000 paid for property damage
resulting from any one accident
◉ Minimum liability insurance required in the State of Mississippi.
Answer: 25/50/25
◉ True. Answer: If you want coverage for your own car you have to
buy your own coverage. The liability coverage is not for yourself.
◉ True. Answer: (T/F)
If an accident occurs in another state, and the financial
responsibility law in that state has higher liability limits than shown
in the declarations, the PAP automatically provides the higher limits.
◉ If more than one liability policy covers a loss:. Answer: -The
insurer pays its pro rata share of the loss for an owned vehicle
-The insurance coverage is excess over any other insurance for a
nonowned vehicle
, ◉ Primary policy. Answer: The owners of the car
◉ Excess policy. Answer: The "friend" driving your car (does not
own the car but is driving it)
◉ Medical payments coverage:PartB. Answer: covers all reasonable
medical and funeral expenses incurred by an insured in an accident
◉ In Medical Payments, if more than one auto policy covers a loss.
Answer: -The insurer pays its pro rata share of the loss for an owned
vehicle
-The insurance coverage is excess over any other insurance for a
nonowned vehicle
◉ Uninsured motorists coverage:PartC. Answer: pays for the bodily
injury caused by an uninsured motorist, by a hit-and-run driver, or
by a negligent driver whose insurance company is insolvent
◉ In uninsured motorists coverage,. Answer: -In some states
property damage is also covered
-The uninsured motorist must be legally liable
-The insurer's maximum limit of liability for any single accident is
the amount shown in the declarations
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Temporary substitute vehicle. Answer: a nonowned auto or trailer
used temporarily because of mechanical breakdown, repair,
servicing, loss, or destruction of a covered vehicle
◉ True. Answer: (T/F)
Liability coverage (Part A) is the most important part of the PAP.
◉ Part A: Liability Coverage. Answer: protects a covered person
against a suit or claim arising out of the ownership or operation of a
covered vehicle
◉ Split limits. Answer: the amounts of insurance for bodily injury
liability and property damage liability are stated separately
◉ split. Answer: The PAP policy is typically written with _______
limits.
,◉ Split limits of 250/500/100 means that you have. Answer: -A
maximum amount of $250,000 for bodily injury to each person for
any one accident
-A maximum amount of $500,000 for the bodily injury to all persons
resulting from any one accident
-A maximum amount of $100,000 paid for property damage
resulting from any one accident
◉ Minimum liability insurance required in the State of Mississippi.
Answer: 25/50/25
◉ True. Answer: If you want coverage for your own car you have to
buy your own coverage. The liability coverage is not for yourself.
◉ True. Answer: (T/F)
If an accident occurs in another state, and the financial
responsibility law in that state has higher liability limits than shown
in the declarations, the PAP automatically provides the higher limits.
◉ If more than one liability policy covers a loss:. Answer: -The
insurer pays its pro rata share of the loss for an owned vehicle
-The insurance coverage is excess over any other insurance for a
nonowned vehicle
, ◉ Primary policy. Answer: The owners of the car
◉ Excess policy. Answer: The "friend" driving your car (does not
own the car but is driving it)
◉ Medical payments coverage:PartB. Answer: covers all reasonable
medical and funeral expenses incurred by an insured in an accident
◉ In Medical Payments, if more than one auto policy covers a loss.
Answer: -The insurer pays its pro rata share of the loss for an owned
vehicle
-The insurance coverage is excess over any other insurance for a
nonowned vehicle
◉ Uninsured motorists coverage:PartC. Answer: pays for the bodily
injury caused by an uninsured motorist, by a hit-and-run driver, or
by a negligent driver whose insurance company is insolvent
◉ In uninsured motorists coverage,. Answer: -In some states
property damage is also covered
-The uninsured motorist must be legally liable
-The insurer's maximum limit of liability for any single accident is
the amount shown in the declarations
