Arkansas Property and Casualty Exam Questions And Answers

Personal Auto Policy - ANS 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 - ANS 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 - ANS 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 - ANS - 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 - ANS NOT a "your covered auto" under Part D - Coverage for Damage to your Auto. Newly Acquired Auto - ANS 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, - ANS 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 - ANS 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, - ANS 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 - ANS 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 - ANS 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 - ANS 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 - ANS 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