RMIN 4000 UGA test 3 Exam Questions and Answers Graded A+

RMIN 4000 UGA test 3 Exam Questions
and Answers Graded A+

Auto Insurance - Correct answer--6 or 12 month policy

-premiums usually paid monthly or quarterly

5 general types of auto coverage - Correct answer-1. liability

2. damage

3. uninsured motorist

4. medical payments

5. convenience coverage

Personal Auto Policy (PAP) - Correct answer---3rd party coverages (payments to

someone else):

•Part A: Liability Coverage (required by state)

--1st party coverages (payments to you):

•Part B: Medical Payments Coverage



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,•Part C: Uninsured Motorists Coverage

•Part D: Coverage for Damage to Your Auto

--Other provisions:

•Part E: Duties after an Accident or Loss

•Part F: General Provisions

What vehicles are covered? - Correct answer-•Any vehicle shown in the

declarations

•A newly acquired vehicle (notify insurer ASAP, definitely within 14 days)

•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

damage coverage - Correct answer-damage to your vehicle

uninsured motorist coverage - Correct answer-3rd party without insurance causes

BI to you or your passengers

medical payments coverage - Correct answer-BI to you or your passengers

Convenience Coverage - Correct answer-towing, rental reimbursement, etc.

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,Part A: Liability Coverage - Correct answer-•Required by state law

•There is a duty to own, maintain and operate your vehicle in a manner that does

not injure others or damage their property.

•If you fail in that duty - even accidentally - you are responsible for injuries /

damages to others.

•Insuring agreement- insurer pays any damages for PI or BD for which any insured

is legally responsible because of an auto accident

Part A: Who is covered? - Correct answer-•The named insured and any resident

family member

•Any person using the named insured's covered auto with permission

•Any person or organization legally responsible for any insured's use of a covered

auto on behalf of that person or organization

oEx: Employer is sued if you get in an accident while on a work trip

oDoes not apply if you're driving a company car

Part A: Relevant Exclusions - Correct answer-•Intentional injury or damage

•Property owned or transported by the insured

•Property rented, used, or in the insured's care


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, •Use as a public or livery conveyance

•Using a vehicle without reasonable belief the person is entitled to do so

•Vehicle with fewer than four wheels

•Vehicle furnished for the named insured's regular use

Part A: Limits - Correct answer-•Split limits: limits for BI per person, BI per

accident, and PD are stated separately (BI pp/BI pa/PD)

•Minimum limits in GA: 25/50/25

o$25,000 BI per person

o$50,000 BI per accident

o$25,000 PD per accident

•Is this enough? If you have insufficient liability limits...

oSeize assets

oGarnish up to 25% of wages

Defense Costs - Correct answer-•Defense costs can be huge. Good thing the

Liability Section covers loss IN ADDITION to the policy limits.

•This means that the costs of defense will not erode the coverage limits available

for payment of claims.

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