ARKANSAS PROPERTY AND CASUALTY EXAM
Personal Auto Policy - ANSWER Part A: Liability Coverage
Part B: Medical Payments Coverage
Part C: Uninsured Motorists Coverage
Part D: Coverage for Damage to Your Auto
Part E: Duties After an Accident or Loss
Part F: General Provisions
You and Your - ANSWER The named insured listed in the declarations, and the
spouse if a resident of the same household. The named insured should always be
the person or persons to whom the vehicle is titled and registered
Private Passenger Autos - ANSWER Shall be deemed to be owned by a person if
the auto is owned or leased under contract for a continuous period of at least 6
months.
Your Covered Auto - ANSWER - any vehicle shown in the declarations
- a newly acquired auto
- a trailer owned by the named insured
- a temporary substitute vehicle
A temporary substitute is - ANSWER NOT a "your covered auto" under Part D -
Coverage for Damage to your Auto.
Newly Acquired Auto - ANSWER A private passenger auto
A pickup or van, for which no other insurance policy provides coverage, if the auto:
Has a gross vehicle weight of 10,000 pounds or less.
Coverage date begins when the insured becomes owner
Under Part D, cover for damage to your auto, - ANSWER automatic coverage
begins on the date the named insured becomes the legal owner of the vehicle.The
insured must report the newly acquired auto to the insurer for coverage to continue.
If the insured doesn't report as required, coverage ends after either 4 or 14 days.
If the Declarations page indicates that either Collision or Other than Collision
coverage applies to at least one vehicle - ANSWER the insured has 14 days to
report for either coverage to apply. Automatic coverage ends after 14 days if the
insured doesn't report.
If the Declarations page indicates that NO Collision or Other than Collision coverage
applies to at least one vehicle, - ANSWER the insured has 4 days to report for
coverage to apply. Automatic coverage ends after 4 days if the insured doesn't
report.
Part A Liability insuring agreement - ANSWER The insurer will:
,Pay damages for bodily injury or property damage for which any insured becomes
legally responsible.
Settle or defend any claim or suit asking for such damages.
Pay all defense costs it incurs, in addition to the liability limits. The insurer's duty to
settle or defend ends when the limit of liability is exhausted.
Supplementary Payments - ANSWER In addition to the limit of liability, the insurer
also makes other payments:
If a bail bond is required because of an accident, the policy will pay up to $250 for
the cost of the bail bond so long as the accident resulted in a covered bodily injury or
property damage claim.
If defending a suit, the insurer will pay premiums on appeal bonds and bonds to
release attachments.
Any interest that accumulates after a judgment has been entered will also be paid by
the insurer if it defends a suit.
The policy pays up to $200 a day for loss of earnings because the insurer requests
attendance at hearings or trials. This does not include loss of other earnings.
The policy will also pay for reasonable expenses incurred at the insurer's request.
This does NOT include traffic fines.
What is excluded in part A-Liability Coverages - ANSWER Intentionally causes
bodily injury or property damage.
Causes property damage to property he or she owns or is transporting.
Causes property damage to property rented to, used by, or in the care of that
insured.
Is responsible for causing bodily injury to an employee (of that insured) during the
course of employment by that insured.
Owns or is operating a vehicle while it's being used as public or livery conveyance
(meaning it has been hired out to the general public). A vehicle used in a share-the-
expense car pool is not considered a public or livery conveyance.
Is employed or engaged in the business of selling, repairing, servicing, storing, road
testing or parking motor vehicles.
Is using a vehicle while employed or engaging in business. However, a coverage
giveback applies to private passenger autos, pickups, vans, and owned trailers used
with such vehicles.
Is using a vehicle without the reasonable belief that he or she is entitled to drive it.
Family members always have a reasonable belief of entitlement to drive a "your
covered auto" under this coverage.
, Part A more exclusions - ANSWER Liability coverage is not provided for the
ownership, maintenance, or use of:
Vehicles that have fewer than four wheels, such as motorcycles
Vehicles designed mainly for use off public roads, such as snowmobiles or ATVs. An
exception applies for off-road vehicles used by an insured in a medical emergency,
"trailers," or non-owned golf carts.
Vehicles owned by the insured that are not insured on this policy OR not owned by
the insured, but are furnished to the insured or available for the insured's regular
use, such as a company car
Vehicles owned by a family member that aren't insured by this policy OR not owned,
but are furnished to a family member or available for the family member's regular
use, such as a company car
Vehicles located inside a racing facility for the purpose of competing, practicing, or
preparing for a race or speed contest
Limit of Liability in Part A - ANSWER The maximum limit paid under Part A -
Liability Coverage is shown on the policy's Declarations. That limit applies per
accident for all bodily injury and property damage arising from that one accident,
including damages for care, loss of services, and a death.
The limit shown in the Declarations is the most the insurer will pay in any one
accident, regardless of the number of:
Insureds
Claims made
Vehicles or premiums shown in the Declarations
Vehicles involved in the accident
With other insurance- - ANSWER If you drive your neighbors car and get in a
wreck, your neighbors car insurance pays first, then the insureds
Part B- Medical Payments Insuring Agreement - ANSWER The insurer will pay
reasonable expenses incurred for necessary medical and funeral services caused by
an accident, sustained by an insured, and incurred within 3 years of the accident.
Unlike Liability Coverage, Medical Payments Coverage does NOT require an insured
to be legally responsible for causing injuries.
Part B Medical Payments Exclusions - ANSWER Part B - Exclusions
Although legal liability on the part of an insured is not required for Medical Payments
Coverage to apply, bodily injury sustained by an insured is NOT covered under the
following circumstances when an insured:
Is occupying a vehicle with fewer than 4 wheels.
Is occupying a vehicle being used as a public or livery conveyance. A share-the-
expense car pool is NOT public or livery conveyance.
Personal Auto Policy - ANSWER Part A: Liability Coverage
Part B: Medical Payments Coverage
Part C: Uninsured Motorists Coverage
Part D: Coverage for Damage to Your Auto
Part E: Duties After an Accident or Loss
Part F: General Provisions
You and Your - ANSWER The named insured listed in the declarations, and the
spouse if a resident of the same household. The named insured should always be
the person or persons to whom the vehicle is titled and registered
Private Passenger Autos - ANSWER Shall be deemed to be owned by a person if
the auto is owned or leased under contract for a continuous period of at least 6
months.
Your Covered Auto - ANSWER - any vehicle shown in the declarations
- a newly acquired auto
- a trailer owned by the named insured
- a temporary substitute vehicle
A temporary substitute is - ANSWER NOT a "your covered auto" under Part D -
Coverage for Damage to your Auto.
Newly Acquired Auto - ANSWER A private passenger auto
A pickup or van, for which no other insurance policy provides coverage, if the auto:
Has a gross vehicle weight of 10,000 pounds or less.
Coverage date begins when the insured becomes owner
Under Part D, cover for damage to your auto, - ANSWER automatic coverage
begins on the date the named insured becomes the legal owner of the vehicle.The
insured must report the newly acquired auto to the insurer for coverage to continue.
If the insured doesn't report as required, coverage ends after either 4 or 14 days.
If the Declarations page indicates that either Collision or Other than Collision
coverage applies to at least one vehicle - ANSWER the insured has 14 days to
report for either coverage to apply. Automatic coverage ends after 14 days if the
insured doesn't report.
If the Declarations page indicates that NO Collision or Other than Collision coverage
applies to at least one vehicle, - ANSWER the insured has 4 days to report for
coverage to apply. Automatic coverage ends after 4 days if the insured doesn't
report.
Part A Liability insuring agreement - ANSWER The insurer will:
,Pay damages for bodily injury or property damage for which any insured becomes
legally responsible.
Settle or defend any claim or suit asking for such damages.
Pay all defense costs it incurs, in addition to the liability limits. The insurer's duty to
settle or defend ends when the limit of liability is exhausted.
Supplementary Payments - ANSWER In addition to the limit of liability, the insurer
also makes other payments:
If a bail bond is required because of an accident, the policy will pay up to $250 for
the cost of the bail bond so long as the accident resulted in a covered bodily injury or
property damage claim.
If defending a suit, the insurer will pay premiums on appeal bonds and bonds to
release attachments.
Any interest that accumulates after a judgment has been entered will also be paid by
the insurer if it defends a suit.
The policy pays up to $200 a day for loss of earnings because the insurer requests
attendance at hearings or trials. This does not include loss of other earnings.
The policy will also pay for reasonable expenses incurred at the insurer's request.
This does NOT include traffic fines.
What is excluded in part A-Liability Coverages - ANSWER Intentionally causes
bodily injury or property damage.
Causes property damage to property he or she owns or is transporting.
Causes property damage to property rented to, used by, or in the care of that
insured.
Is responsible for causing bodily injury to an employee (of that insured) during the
course of employment by that insured.
Owns or is operating a vehicle while it's being used as public or livery conveyance
(meaning it has been hired out to the general public). A vehicle used in a share-the-
expense car pool is not considered a public or livery conveyance.
Is employed or engaged in the business of selling, repairing, servicing, storing, road
testing or parking motor vehicles.
Is using a vehicle while employed or engaging in business. However, a coverage
giveback applies to private passenger autos, pickups, vans, and owned trailers used
with such vehicles.
Is using a vehicle without the reasonable belief that he or she is entitled to drive it.
Family members always have a reasonable belief of entitlement to drive a "your
covered auto" under this coverage.
, Part A more exclusions - ANSWER Liability coverage is not provided for the
ownership, maintenance, or use of:
Vehicles that have fewer than four wheels, such as motorcycles
Vehicles designed mainly for use off public roads, such as snowmobiles or ATVs. An
exception applies for off-road vehicles used by an insured in a medical emergency,
"trailers," or non-owned golf carts.
Vehicles owned by the insured that are not insured on this policy OR not owned by
the insured, but are furnished to the insured or available for the insured's regular
use, such as a company car
Vehicles owned by a family member that aren't insured by this policy OR not owned,
but are furnished to a family member or available for the family member's regular
use, such as a company car
Vehicles located inside a racing facility for the purpose of competing, practicing, or
preparing for a race or speed contest
Limit of Liability in Part A - ANSWER The maximum limit paid under Part A -
Liability Coverage is shown on the policy's Declarations. That limit applies per
accident for all bodily injury and property damage arising from that one accident,
including damages for care, loss of services, and a death.
The limit shown in the Declarations is the most the insurer will pay in any one
accident, regardless of the number of:
Insureds
Claims made
Vehicles or premiums shown in the Declarations
Vehicles involved in the accident
With other insurance- - ANSWER If you drive your neighbors car and get in a
wreck, your neighbors car insurance pays first, then the insureds
Part B- Medical Payments Insuring Agreement - ANSWER The insurer will pay
reasonable expenses incurred for necessary medical and funeral services caused by
an accident, sustained by an insured, and incurred within 3 years of the accident.
Unlike Liability Coverage, Medical Payments Coverage does NOT require an insured
to be legally responsible for causing injuries.
Part B Medical Payments Exclusions - ANSWER Part B - Exclusions
Although legal liability on the part of an insured is not required for Medical Payments
Coverage to apply, bodily injury sustained by an insured is NOT covered under the
following circumstances when an insured:
Is occupying a vehicle with fewer than 4 wheels.
Is occupying a vehicle being used as a public or livery conveyance. A share-the-
expense car pool is NOT public or livery conveyance.
