UNL FINA 361 EXAM 2 UPDATED
PRACTICE SOLUTION BUNDLED REVIEW
SHEET TESTED ANSWERS
⩥ Out-of-state coverage.
Answer: PAP gives higher limits if another state requires them.
⩥ Medical payments coverage.
Answer: Pays medical and funeral expenses from auto accidents,
regardless of fault.
⩥ Medical payments time limit.
Answer: Medical expenses must happen within three years.
⩥ Uninsured motorists coverage.
Answer: Covers injury caused by an uninsured, hit-and-run, or insolvent
driver.
⩥ Uninsured motor vehicle.
Answer: A vehicle with no insurance, too little required insurance, hit-
and-run status, or insolvent insurer.
,⩥ UM arbitration.
Answer: Used when the insured and insurer disagree about damages.
⩥ Underinsured motorists coverage.
Answer: Covers when the at-fault driver has insurance but not enough.
⩥ Collision coverage.
Answer: Covers upset or impact with another vehicle or object.
⩥ Other-than-collision coverage.
Answer: Covers theft, fire, hail, flood, vandalism, animals, and similar
losses.
⩥ Nonowned auto.
Answer: A car not owned or regularly available to the insured or family
member.
⩥ Temporary substitute vehicle.
Answer: A vehicle temporarily used while the covered auto is
unavailable.
⩥ Collision damage waiver.
, Answer: Rental car coverage that may be unnecessary if you already
have collision and comprehensive.
⩥ Deductible.
Answer: The amount the insured pays before insurance pays.
⩥ Temporary transportation expense.
Answer: Pays rental car costs after a covered auto loss.
⩥ Towing and labor coverage.
Answer: Optional coverage added by endorsement.
⩥ Total loss settlement.
Answer: Insurer pays actual cash value minus deductible.
⩥ Partial loss settlement.
Answer: Insurer pays to repair or replace with like kind and quality.
⩥ Gap insurance.
Answer: Covers the difference between loan balance and car value.
⩥ Auto appraisal provision.
PRACTICE SOLUTION BUNDLED REVIEW
SHEET TESTED ANSWERS
⩥ Out-of-state coverage.
Answer: PAP gives higher limits if another state requires them.
⩥ Medical payments coverage.
Answer: Pays medical and funeral expenses from auto accidents,
regardless of fault.
⩥ Medical payments time limit.
Answer: Medical expenses must happen within three years.
⩥ Uninsured motorists coverage.
Answer: Covers injury caused by an uninsured, hit-and-run, or insolvent
driver.
⩥ Uninsured motor vehicle.
Answer: A vehicle with no insurance, too little required insurance, hit-
and-run status, or insolvent insurer.
,⩥ UM arbitration.
Answer: Used when the insured and insurer disagree about damages.
⩥ Underinsured motorists coverage.
Answer: Covers when the at-fault driver has insurance but not enough.
⩥ Collision coverage.
Answer: Covers upset or impact with another vehicle or object.
⩥ Other-than-collision coverage.
Answer: Covers theft, fire, hail, flood, vandalism, animals, and similar
losses.
⩥ Nonowned auto.
Answer: A car not owned or regularly available to the insured or family
member.
⩥ Temporary substitute vehicle.
Answer: A vehicle temporarily used while the covered auto is
unavailable.
⩥ Collision damage waiver.
, Answer: Rental car coverage that may be unnecessary if you already
have collision and comprehensive.
⩥ Deductible.
Answer: The amount the insured pays before insurance pays.
⩥ Temporary transportation expense.
Answer: Pays rental car costs after a covered auto loss.
⩥ Towing and labor coverage.
Answer: Optional coverage added by endorsement.
⩥ Total loss settlement.
Answer: Insurer pays actual cash value minus deductible.
⩥ Partial loss settlement.
Answer: Insurer pays to repair or replace with like kind and quality.
⩥ Gap insurance.
Answer: Covers the difference between loan balance and car value.
⩥ Auto appraisal provision.
