RMIN CH 22 AUTO INSURANCE EXAM
2025 QUESTIONS AND ANSWERS
1) Which of the following statements about the liability limits of the PAP is (are) true?
I. The policy is written with split limits of liability.
II. Prejudgment interest is considered part of the damage award and is subject to the policy
limit of liability.
A) I only
B) II only
C) both I and II
D) neither I nor II - ANS C
2) Which of the following statements about the payment of defense costs by the PAP is (are)
true?
I. They are paid in addition to the policy limits.
II. They are payable even after the limit of liability is exhausted.
A) I only
B) II only
C) both I and II
D) neither I nor II - ANS A
3) All of the following are covered autos under the liability section of the PAP EXCEPT
A) a nonowned van which is driven by the insured on a regular basis.
B) a trailer owned by the named insured.
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, C) a borrowed auto used by the insured as a substitute for a stolen covered auto.
D) a newly acquired auto which replaces a vehicle previously described in the policy. - ANS A
4) All of the following are insured persons under the liability coverage of the PAP EXCEPT
A) a friend to whom the named insured loans a covered auto.
B) the employer of the named insured for actions resulting from the named insuredʹs use of a
covered auto.
C) the former spouse of the named insured who moved out of the home 2 years ago when the
divorce was finalized.
D) a relative of the named insured if a member of the same household. - ANS C
5) Which of the following persons is (are) covered for liability insurance under the PAP?
I. A family member who drives a covered auto.
II. A family member who occasionally drives a friendʹs auto.
A) I only
B) II only
C) both I and II
D) neither I nor II - ANS C
6) All of the following are covered as supplementary payments under the liability section of the
PAP EXCEPT
A) the cost of an appeal bond in a lawsuit.
B) the cost of a bail bond for a traffic violation when no accident is involved.
C) interest which accrues on a liability judgment covered by the policy.
D) reasonable expenses incurred by the insured to testify at a trial involving a lawsuit covered
by the policy. - ANS B
7) Which of the following situations would be covered by the liability section of an unendorsed
PAP if the insured is legally liable?
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2025 QUESTIONS AND ANSWERS
1) Which of the following statements about the liability limits of the PAP is (are) true?
I. The policy is written with split limits of liability.
II. Prejudgment interest is considered part of the damage award and is subject to the policy
limit of liability.
A) I only
B) II only
C) both I and II
D) neither I nor II - ANS C
2) Which of the following statements about the payment of defense costs by the PAP is (are)
true?
I. They are paid in addition to the policy limits.
II. They are payable even after the limit of liability is exhausted.
A) I only
B) II only
C) both I and II
D) neither I nor II - ANS A
3) All of the following are covered autos under the liability section of the PAP EXCEPT
A) a nonowned van which is driven by the insured on a regular basis.
B) a trailer owned by the named insured.
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, C) a borrowed auto used by the insured as a substitute for a stolen covered auto.
D) a newly acquired auto which replaces a vehicle previously described in the policy. - ANS A
4) All of the following are insured persons under the liability coverage of the PAP EXCEPT
A) a friend to whom the named insured loans a covered auto.
B) the employer of the named insured for actions resulting from the named insuredʹs use of a
covered auto.
C) the former spouse of the named insured who moved out of the home 2 years ago when the
divorce was finalized.
D) a relative of the named insured if a member of the same household. - ANS C
5) Which of the following persons is (are) covered for liability insurance under the PAP?
I. A family member who drives a covered auto.
II. A family member who occasionally drives a friendʹs auto.
A) I only
B) II only
C) both I and II
D) neither I nor II - ANS C
6) All of the following are covered as supplementary payments under the liability section of the
PAP EXCEPT
A) the cost of an appeal bond in a lawsuit.
B) the cost of a bail bond for a traffic violation when no accident is involved.
C) interest which accrues on a liability judgment covered by the policy.
D) reasonable expenses incurred by the insured to testify at a trial involving a lawsuit covered
by the policy. - ANS B
7) Which of the following situations would be covered by the liability section of an unendorsed
PAP if the insured is legally liable?
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