A D Banker Property and Casualty Chapter 6 with correct answers

Part A - ANSWERSLiability Coverages Part B - ANSWERSMedical Payments Part C - ANSWERSUninsured Motorist (UM) Part D - ANSWERSCoverage for Damage to Your Auto Part E - ANSWERSDuties After an Accident or Loss Part F - ANSWERSGeneral Provisions You and your - ANSWERSThe 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, unless it's a leased vehicle. Private Passenger Auto - ANSWERSShall 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. Bodily Injury - ANSWERSBodily harm, sickness, or disease, including death that results Business - ANSWERSIncludes trade, profession, or occupation. The courts have determined that business activities have two components: they are continuous in nature and offer the opportunity for profit. Family Member - ANSWERSA person related to the named insured by blood, marriage, or adoption who is a resident of the named insured's household. A family member includes a ward or foster child. Occupying - ANSWERSMeans in, upon, getting in, getting on, getting out, or getting off a vehicle. Property Damage - ANSWERSPhysical injury to, destruction of, or loss of use of tangible property. Trailer - ANSWERSA vehicle designed to be pulled by a private passenger auto or a pickup or van. Trailer also includes a farm wagon or farm implement while it's being towed by a private passenger auto pickup, or van. Your Covered Auto - ANSWERSAny vehicle shown in the Declarations A newly acquired auto Any trailer that the insured owns Any auto or "trailer" the named insured doesn't own while being used as a temporary substitute for any other vehicle described in this definition Split Limit - ANSWERSThe amounts of coverage for bodily injury and property damage are separate. Split limits are expressed using 3 separate limits: a bodily injury (BI) limit per person, a bodily injury (BI) limit per accident, and a separate limit for property damage (PD) per accident. If Part A of a policy is written with limits of 100/300/50, the policy will provide coverage of $100,000 per person for BI with a maximum BI aggregate limit of $300,000 per accident. Additionally the policy will provide a $50,000 limit for PD per accident. BI - ANSWERSBodily Injury PD - ANSWERSProperty Damage Medical Payments Coverage Insuring Agreement - ANSWERSdoes NOT require an insured to be legally responsible for causing injuries. The policy defines insured in Part B, as: The named insured or any family member occupying any auto or as a pedestrian when struck by a motor vehicle designed for use mainly on public roads. These vehicles do NOT have to be owned by the insured and include any type of trailer. Any other person, such as a passenger, while occupying the insured auto. Uninsured Motorists Coverage Insuring Agreement - ANSWERSprovides insurance to insured persons injured in accidents that are caused by another party. The other party must be legally responsible for bodily injury to an insured that arises out of the ownership, maintenance, or use of an "uninsured motor vehicle." If the other party is NOT legally responsible (or not at-fault), this coverage doesn't apply. The insurer will pay damages that an insured is legally entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injury. Unless the policy specifically states that Uninsured Motorist Physical Damage (UMPD) is also provided, this section of the policy only applies to bodily injury damages. Uninsured Motor Vehicle - ANSWERSDoesn't have insurance or a bond in place at the time of the accident. Has insurance in place at the time of the accident. However, the bodily injury liability limits are less than those required by the financial responsibility or compulsory insurance laws in place in the state where the insured's "your covered auto" is principally garaged. Is a hit-and-run vehicle. The owner or operator of the vehicle can't be identified Has insurance, but the insurer either denies the claim or becomes insolvent. Underinsured Motorists Coverage - ANSWERSprotects the insured against drivers who do have auto liability insurance, but whose coverage limits are inadequate or insufficient to respond to claims. The coverage pays only up to the amount that exceeds the limit of liability of the at-fault party. Collision - ANSWERSThe upset of the covered vehicle or a non-owned auto, or its impact with another vehicle or object, such as a tree. Other Than Collision (OTC Comprehensive) - ANSWERSprovides coverage on an open perils basis, which means all causes of loss other than a collision loss and not excluded in the policy. OTC, or Comprehensive, includes but is not limited to the following causes of loss Limit of Liability (Part D) - ANSWERSThe insurer's limit of liability for loss is the lesser of the actual cash value (ACV) of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality. In the event of a total loss, adjustments will be made for depreciation and physical condition when determining the ACV. If a repair or replacement results in better than like kind or quality, the insurer will not pay for the amount of the betterment. Right to Recover Payment - ANSWERSIf the insurance company makes a claim payment, the person on behalf of whom payment was made must assign its rights to recover damages from another party to the insurance company. If a claimant recovers from another party after the insurer has made payment, that claimant must reimburse the insurance company. Non-Renewal - ANSWERSThe insurer may elect to non-renew a policy; if non-renewing the policy, the insurer must give the insured written notice before the end of the policy period. At least 20 days advance written notice must be provided (some states require 30, 45 or 60 days notice). In most cases, state law requires the insurer to list the reason for non-renewal on the notice. State law prevails. Automatic Termination - ANSWERSThe policy automatically terminates if the insured, or a legal representative, fails to accept or pay for a renewal or continuation of the policy. In addition, coverage automatically terminates if the named insured secures other auto insurance on an auto shown on the Declarations. Transfer of your interest in this policy - ANSWERSThe named insured may not transfer or assign his/her interest in the policy without the insurer's written consent. However, if the named insured dies, the resident spouse will automatically become the named insured. By the same token, if the named insured dies, his/her legal representative will automatically become the named insured but only with respect to legal responsibility for maintenance or use of any Your Covered Auto. This automatic coverage is provided until the end of the policy period. Two or more auto policies - ANSWERSIf two or more policies issued by the same insurer apply to the same accident, the maximum limit of liability that will be paid will not exceed the policy with the highest limit. Extended Non-Owned Coverage for a Named Individual - ANSWERSprovides coverage by removing or altering some of the Personal Auto Policy's exclusions or limitations. It also covers non-owned autos furnished or available for the insured's regular use. The endorsement provides excess liability coverage, for the individual named on the endorsement and for the business use of a commercial type vehicle that the named insured does not own. It can be used to provide excess liability coverage for the use of a vehicle as a public or livery conveyance. Towing and Labor Costs Coverage Endorsement - ANSWERSThis endorsement provides payment, at the designated amount, for towing to a garage or for labor performed at the site of disablement. The coverage applies per occurrence and to either a Your Covered Auto or the insured's use of a non-owned auto. Miscellaneous Type Vehicle Endorsement - ANSWERSchanges the policy by adding a definition for "miscellaneous type vehicle," which means a motor home, motorcycle, or other similar type vehicle, ATV, dune buggy, or golf cart. In addition, to the definitions section of the policy, the endorsement amends "your covered auto" and "newly acquired auto" to include any "miscellaneous type vehi