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Personal Auto Questions and Correct
Answers/ Latest Update / Already Graded
An insured is involved in an auto accident in another state. The state
has a financial responsibility law that specifies limits of liability higher
than the limits shown in the declarations. What amount will the
insured's policy pay?
Ans: Higher limits
Which of the following personal auto coverages would pay for the
insured's travel expenses and loss of earnings while involved in the
settlement process of a covered loss?
Ans: Liability coverage
Which of the following is NOT one of the 3 factors set by state law for
determining rates and premiums on automobile insurance policies?
Ans: The type and model of vehicle
An insured has an auto liability policy with limits of 25/50/15. The
insured is involved in an accident caused by her negligence and is held
legally liable for bodily injuries of 3 persons in the other auto as follows:
"A" $15,000, "B" $30,000, and "C" $35,000. How much will her insurer
pay in total for all injuries?
All rights reserved © 2025/ 2026 |
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Ans: $50,000
Which of the following is a common exclusion found in Part D:
Coverage for Damage to Your Auto of a PAP?
Ans: Mechanical breakdown
An insured is driving her car through a residential area when she loses
control and crashes into a neighbor's front porch. The neighbor, who
was sitting on the porch, is injured. The insured's liability policy has a
limit of $500,000. This amount applies to the total of damages for any
bodily injury and property damage resulting from one accident. Which
type of limit of liability does the insured have?
Ans: Combined single
Any person who claims that he or she meets the criteria based on a
driver's license and driving experience acquired anywhere other than in
the United States or Canada is presumed to be qualified to purchase a
Good Driver Discount policy if that person has been licensed to drive in
the U.S. or Canada and meets the criteria for that period for at least
the previous...
Ans: 18 months
All rights reserved © 2025/ 2026 |
, Page |3
In the personal auto policy, owned trailers being towed by an insured
auto are automatically covered for...
Ans: Uninsured motorist coverage (PD, BI, & UM)
If a person is using an auto with the belief that he is entitled to do so,
subrogation rights under a personal auto policy would apply to all
coverages EXCEPT...
Ans: Physical damage
In personal auto policies, the term "you" refers to...
Ans: The named insured
In California, the liability for damage to property is limited to...
Ans: $5,000
An insured has a personal auto policy with both comprehensive (other-
than-collision) and collision coverage. His car is stolen and recovered
five days later. If the insured claims transportation expenses of $20 per
day, how much will his policy pay?
Ans: $60 ($20 per day after 48 hours, not to exceed 30 days in
total)
All rights reserved © 2025/ 2026 |
Personal Auto Questions and Correct
Answers/ Latest Update / Already Graded
An insured is involved in an auto accident in another state. The state
has a financial responsibility law that specifies limits of liability higher
than the limits shown in the declarations. What amount will the
insured's policy pay?
Ans: Higher limits
Which of the following personal auto coverages would pay for the
insured's travel expenses and loss of earnings while involved in the
settlement process of a covered loss?
Ans: Liability coverage
Which of the following is NOT one of the 3 factors set by state law for
determining rates and premiums on automobile insurance policies?
Ans: The type and model of vehicle
An insured has an auto liability policy with limits of 25/50/15. The
insured is involved in an accident caused by her negligence and is held
legally liable for bodily injuries of 3 persons in the other auto as follows:
"A" $15,000, "B" $30,000, and "C" $35,000. How much will her insurer
pay in total for all injuries?
All rights reserved © 2025/ 2026 |
, Page |2
Ans: $50,000
Which of the following is a common exclusion found in Part D:
Coverage for Damage to Your Auto of a PAP?
Ans: Mechanical breakdown
An insured is driving her car through a residential area when she loses
control and crashes into a neighbor's front porch. The neighbor, who
was sitting on the porch, is injured. The insured's liability policy has a
limit of $500,000. This amount applies to the total of damages for any
bodily injury and property damage resulting from one accident. Which
type of limit of liability does the insured have?
Ans: Combined single
Any person who claims that he or she meets the criteria based on a
driver's license and driving experience acquired anywhere other than in
the United States or Canada is presumed to be qualified to purchase a
Good Driver Discount policy if that person has been licensed to drive in
the U.S. or Canada and meets the criteria for that period for at least
the previous...
Ans: 18 months
All rights reserved © 2025/ 2026 |
, Page |3
In the personal auto policy, owned trailers being towed by an insured
auto are automatically covered for...
Ans: Uninsured motorist coverage (PD, BI, & UM)
If a person is using an auto with the belief that he is entitled to do so,
subrogation rights under a personal auto policy would apply to all
coverages EXCEPT...
Ans: Physical damage
In personal auto policies, the term "you" refers to...
Ans: The named insured
In California, the liability for damage to property is limited to...
Ans: $5,000
An insured has a personal auto policy with both comprehensive (other-
than-collision) and collision coverage. His car is stolen and recovered
five days later. If the insured claims transportation expenses of $20 per
day, how much will his policy pay?
Ans: $60 ($20 per day after 48 hours, not to exceed 30 days in
total)
All rights reserved © 2025/ 2026 |
