SC P&C Producer Exam Section 6 Auto Insurance exam questions with 100% correct answers

South Carolina Motor Vehicle Financial Responsibility Act Requires that all automobile drivers be able to show proof that they can pay for damages done to others up to a minimum amount if involved in an accident Required auto limits 25000/50000 for bodily injury and 25000 for property damage Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:00 Full screen Uninsured Motorist a driver involved in a vehicle accident who does not have insurance or the coverage is less than the state minimum, required by South carolina Underinsured Motorist covers injuries or damage to the driver, or the vehicle caused by a driver with insufficient insurance bodily injury liability insurance that covers physical injuries caused by a vehicle accident for which you are responsible property damage liability motor vehicle insurance that applies when you damage the property of others, Minimum 25000 per accident with 200 deductible Auto Cancelation May cancel without cause during the first 90 days of the policy Notice of cancelation insurer must send notice with written reason for cancelation Named driver exclusion An endorsement to an auto insurance policy that provides that a policy does not cover accidents when a specifically named person is the driver. Constructive Total Loss Occurs when the cost of salvaging the cargo is too high relative to the value saved Trailer a vehicle designed to be pulled by a private passenger auto, a pickup, or a van Covered Auto any listed in the declarations section of the insurance contract, a newly acquired vehicle, a trailer owned by a named insured, or a temporary substitute vehicle, any personal vehicle leased for at least 6 months Newly Acquired Auto Any vehicle acquired by the insured during the policy period. Insuring Agreement A statement in an insurance policy that the insurer will, under described circumstances, make a loss payment or provide a service. Defense Costs Legal expenses incurred by the insurer to defend suits brought against insureds, (Paid in addition to policy limits) Supplementary Payments Various expenses the insurer agrees to pay under a liability insurance policy (in addition to the liability limits) for items such as premiums on bail bonds and appeal bonds, loss of the insured's earnings because of attendance at trials, and other reasonable expenses incurred by the insured at the insurer's request. Limit of Liability The maximum amount the insurer will pay for a specified insured contingency. Out of State Coverage If the accident occurs in a state that has a financial responsibility law with higher liability limits than the limits shown in the declarations, the PAP automatically provides the higher specified limits. Other Insurance a provision in an insurance policy that defines how the policy will respond if there is other valid insurance written on the same risk collision coverage covers your vehicle for damage caus