RMI Chapter 20 Auto Insurance
questions with 100% correct answers
Personal Auto Policy (PAP) - correct answer ✔✔widely used throughout the
United States
Eligible vehicles include:
-A four-wheeled motor vehicle owned or leased by the insured for at least 6
consecutive months
-A pickup or van with a gross vehicle weight rating of 10,000 pounds or less
Personal Auto Policy (PAP) - correct answer ✔✔Autos covered by the policy
include:
-Any auto shown in the declarations
-A newly acquired auto
-A trailer owned by the named insured
-A temporary substitute vehicle, which is a non owned auto or trailer used
temporarily because of mechanical breakdown, repair, servicing, loss, or
destruction of a covered vehicle
Temporary Substitute Vehicle - correct answer ✔✔non owned auto or trailer used
temporarily because of mechanical breakdown, repair, servicing, loss, or
destruction of a covered vehicle
, Split Limits - correct answer ✔✔where the amounts of insurance for bodily injury
liability and property damage liability are stated separately
For example, split limits of 250/500/100 mean that you have bodily injury
coverage of $250,000 for each person, a maximum of $500,000 of bodily injury
coverage per accident, and a maximum of $100,000 for property damage liability
Supplementary Payments - correct answer ✔✔Includes:
-The cost of a bail bond, up to $250
-Premiums on appeal bonds
-Interest accruing after a judgment
-Loss of earnings, up to $200/day
-Other reasonable expenses
Medical Payments Coverage - correct answer ✔✔covers all reasonable medical
and funeral expenses incurred by an insured in an accident
-Coverage is not based on fault
-Covers medical services rendered within 3 years from the date of the accident
Uninsured Motorists Coverage - correct 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 some states, property damage is also covered
-The uninsured motorist must be legally liable
questions with 100% correct answers
Personal Auto Policy (PAP) - correct answer ✔✔widely used throughout the
United States
Eligible vehicles include:
-A four-wheeled motor vehicle owned or leased by the insured for at least 6
consecutive months
-A pickup or van with a gross vehicle weight rating of 10,000 pounds or less
Personal Auto Policy (PAP) - correct answer ✔✔Autos covered by the policy
include:
-Any auto shown in the declarations
-A newly acquired auto
-A trailer owned by the named insured
-A temporary substitute vehicle, which is a non owned auto or trailer used
temporarily because of mechanical breakdown, repair, servicing, loss, or
destruction of a covered vehicle
Temporary Substitute Vehicle - correct answer ✔✔non owned auto or trailer used
temporarily because of mechanical breakdown, repair, servicing, loss, or
destruction of a covered vehicle
, Split Limits - correct answer ✔✔where the amounts of insurance for bodily injury
liability and property damage liability are stated separately
For example, split limits of 250/500/100 mean that you have bodily injury
coverage of $250,000 for each person, a maximum of $500,000 of bodily injury
coverage per accident, and a maximum of $100,000 for property damage liability
Supplementary Payments - correct answer ✔✔Includes:
-The cost of a bail bond, up to $250
-Premiums on appeal bonds
-Interest accruing after a judgment
-Loss of earnings, up to $200/day
-Other reasonable expenses
Medical Payments Coverage - correct answer ✔✔covers all reasonable medical
and funeral expenses incurred by an insured in an accident
-Coverage is not based on fault
-Covers medical services rendered within 3 years from the date of the accident
Uninsured Motorists Coverage - correct 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 some states, property damage is also covered
-The uninsured motorist must be legally liable
