AIC 302 Chapter 1 Questions with Verified
Correct Answers
First Party Claim
A demand by an insured person or organization seeking to recover from its insurer for a loss
that its insurance policy may cover.
Third-party claim
A demand against an insured by a person or organization other than the insured or the insurer,
seeking to recover damages that may be payable by the insured's liability insurance.
Types of Claims That Can Arise From an Auto Accident -
First Party Medical Payments Losses
- Covered under PIP or med pay
- Involves: driver and or passengers' injuries
- NO-FAULT States: Insureds PIP insurer pays, medical payments, lost wages, loss of
services and funeral expenses.
-States without no-fault laws: Med pay might pay medical expenses for named insured,
family, and other injuries while occupying a covered auto.
First Party Property Damage
- Covered Under: damage to your auto
- Involves: damage resulting from a Collison, fire, flood, theft of vehicle or other than
collision.
Third Party Bodily Injury Liability
, - Covered Under: the liability coverage
- Involves: Injuries arising by a third party in an auto accident in state with no fault laws.
- Provided coverage for: Medical expenses, lost wages, pain and suffering, funeral expenses,
legal defense costs.
Uninsured Motorist (UM)
- Involves: Uninsured motorists, hit and run drivers, drivers whose insurers are insolvent
- Providers coverage for: medical costs, lost wages, pain and suffering and funeral expenses.
Underinsured Motorists (UIM)
Provides coverage for: Bodily injury. In a few states UIM protects against property damage
that exceeds a specific limit
Third party property damage liability
- Covered under: liability
- Involves: insured liable for TP damage to other autos in an accident.
- Property might include: buildings, landscaping, other vehicles, structures.
Negligence
The failure to exercise the degree of care that a reasonable person in a similar situation would
exercise to avoid harming others.
Proximate cause
A cause that, in a natural and continuous sequence unbroken by any new and independent
cause, produces an event and without which the event would not have happened.
Rules of the Road, Rights, and Duties
Correct Answers
First Party Claim
A demand by an insured person or organization seeking to recover from its insurer for a loss
that its insurance policy may cover.
Third-party claim
A demand against an insured by a person or organization other than the insured or the insurer,
seeking to recover damages that may be payable by the insured's liability insurance.
Types of Claims That Can Arise From an Auto Accident -
First Party Medical Payments Losses
- Covered under PIP or med pay
- Involves: driver and or passengers' injuries
- NO-FAULT States: Insureds PIP insurer pays, medical payments, lost wages, loss of
services and funeral expenses.
-States without no-fault laws: Med pay might pay medical expenses for named insured,
family, and other injuries while occupying a covered auto.
First Party Property Damage
- Covered Under: damage to your auto
- Involves: damage resulting from a Collison, fire, flood, theft of vehicle or other than
collision.
Third Party Bodily Injury Liability
, - Covered Under: the liability coverage
- Involves: Injuries arising by a third party in an auto accident in state with no fault laws.
- Provided coverage for: Medical expenses, lost wages, pain and suffering, funeral expenses,
legal defense costs.
Uninsured Motorist (UM)
- Involves: Uninsured motorists, hit and run drivers, drivers whose insurers are insolvent
- Providers coverage for: medical costs, lost wages, pain and suffering and funeral expenses.
Underinsured Motorists (UIM)
Provides coverage for: Bodily injury. In a few states UIM protects against property damage
that exceeds a specific limit
Third party property damage liability
- Covered under: liability
- Involves: insured liable for TP damage to other autos in an accident.
- Property might include: buildings, landscaping, other vehicles, structures.
Negligence
The failure to exercise the degree of care that a reasonable person in a similar situation would
exercise to avoid harming others.
Proximate cause
A cause that, in a natural and continuous sequence unbroken by any new and independent
cause, produces an event and without which the event would not have happened.
Rules of the Road, Rights, and Duties
