Adjuster Pro Section-3 2023/2024

Adjuster Pro Section-3 2023/2024 The Personal Auto Policy (PAP) - CORRECT ANSWER-A policy that combines liability insurance with other optional coverages PAP Policies can cover - CORRECT ANSWER--Individuals and residing family members -People driving car with owner's permission -Four-wheeled vehicles under 10,000 lbs *Insurable interest is required PAP Policies will indemnify for: - CORRECT ANSWER--Property Damage -Personal Injury -Legal Defense What will PAPs not pay for - CORRECT ANSWER-Punitive Damages 8 Sections of Typical PAP - CORRECT ANSWER-1. Declarations 2. Part A Liability 3. Part B Medical Payments 4. Part C Uninsured Motorist 5. Part D Coverage for Damages to Your Auto 6. Part E Duties After an Accident or Loss 7. Part F General Provisions 8. Endorsements Auto Insurance Deductibles - CORRECT ANSWER-Fixed amount on a Per Claim Basis Deductibles typically only apply to what type of Auto Insurance coverages - CORRECT ANSWER-Collision and Comprehensive Your Covered Auto Definition - CORRECT ANSWER-1. The car specified on declarations page 2. Any car the named insured borrows with permission 3. A newly acquired auto 4. A trailer that the insured owns 5. A temporary substitute for a car or trailer listed on the dec page due to an incident Newly Acquired Auto definition - CORRECT ANSWER-Any new or used vehicle that the insured gets during the current policy period Rules for Adding Newly Acquired Atuo - CORRECT ANSWER--If new auto is replacing auto listed on dec page, no reporting is needed. -If new auto is not replacing auto listed on dec page, insured has 14 days to report to insurer -Comprehensive and Collision Coverage can be added within 4 days of getting new car and are automatically applied for first 4 days with $500 deductible Covered Person - CORRECT ANSWER-1. The named insured and family members living in the same household 2. Someone using covered auto with permission Minimum amount of auto required for some states - CORRECT ANSWER-$25,000 for person's injuries $50,000 max for all injuries in any one accident $10,000 max for all property damage Primary Coverage in PAP - CORRECT ANSWER-Coverage is primary if it involves a car the insured owns Secondary Coverage in PAP - CORRECT ANSWER-Coverage is secondary if it involves a car the insured does not own Out of State Coverage Provision in PAP - CORRECT ANSWER-If you meet your home state's requirements, it is assumed you meet the requirements of any other state. PAP Part A - Supplementary Payments - CORRECT ANSWER--Assist policyholder with a variety of accident-related expenses -Not subject to liability limits May include: -Lost wages up to $200 per day -Expenses due to insurer's request such as retrieving accidents reports or records -Bails bonds up to $250 -Accrued interest after a judgement -Premiums on appeal bonds and attachment bonds PAP Part A - Exclusions - CORRECT ANSWER--Intentional Damage -Property owned or transported by the insured -Damages incurred under the scope of employment, except domestic employees ineligible for workers' comp -Properties rented or used by insured -Hired vehicles transporting people or goods -Company-owned business vehicles -Damages or injuries caused whole repairing servicing storing etc. -Vehicles taken without permission No-Fault Insurance - CORRECT ANSWER--Designed to indemnify the insured for his own injuries regardless of fault -Covers bodily injury only -Mandatory in some states PAP Part B - Medical Payments - CORRECT ANSWER--Provides coverage for the insured -Pays medical expenses of the insured, no matter who caused them -Applies when anyone considered an insured under the policy is occupying or struck by auto -Includes vehicle-pedestrian accidents -Covers eligible payments for up to 3 years, per insuring agreement Exclusions to Medical Payments Part B - CORRECT ANSWER--Accidents where an insured is occupying a vehicle with less than four wheels -Autos rented or leased for hire -Autos used without Permission -Commercial Vehicles -Vehicles located for use as a residence -Medical payments begin only after PIP coverage is exhausted. PAP Part C - Uninsured/Underinsured Motorist Coverage - CORRECT ANSWER-- Covers bodily injuries cause by people with insufficient or no insurance -Coverage for physical damage can be counted as uninsured Uninsured Motorist - CORRECT ANSWER-1. Driver with no liability insurance 2. Driver whose insurer won't pay 3. Hit and run driver Underinsured Motorist - CORRECT ANSWER-Driver who does not have enough insurance to pay for all damages Exclusions to UM/UIM Coverage - CORRECT ANSWER--Insured's own auto that is not listed in policy -Government Vehicles -Off-Road Vehicles -Vehicles used as a premises -Covered autos that are rented or used for hire -Cars used without reasonable belief that permission was granted PAP Part D - Damage to Your Auto - CORRECT ANSWER--Called Physical Damage -Protects insured's financial interest in the car -Two types: Collision and Other Than Collision PAP Part D - Collision Coverage - CORRECT ANSWER--Pays for damage to insured's vehicle caused by collision or rollover -Applies even when insured is at-fault -For covered auto and any non-owned car insured is driving Payment after a Collusion - CORRECT ANSWER--Total Damage: Insurer pays ACV of car at time of the collision -Partial Damage: Insurer pays to repair the car with similar materials -Transportation Expenses: $20/day, up to $600 PAP Part D - Other than Collision (Comprehensive) - CORRECT ANSWER-Covers damages not caused by collision or overturn Comprehensive Coverage Perils under PAP - CORRECT ANSWER--Theft -Hail, water, or flood -Windstorm -Fire -Vandalism -Explosion -Earthquake -Riot/Civil Unrest -Missiles or falling objects -Bird or Animals Personal Injury Protection (PIP) No-Fault - CORRECT ANSWER--Covers injuries to the insured caused by an accidents, no matter who was at fault Advantages of No-Fault PIP - CORRECT ANSWER--Fewer lawsuits -Helps contain rising automobile insurance costs -First party rather than third party claims -Quicker reimbursements -Pays up to the policy limit without recourse Who does PIP Pay for? - CORRECT ANSWER--Insured and members of household, in the insured or another's vehicle -Children of the insured while on the school bus -Certain passengers without their own PIP -Licensed drivers who drive the insured's vehicle with permission What does PIP pay? - CORRECT ANSWER--Medical costs -Lost wages -Medical transportation expenses -In-home caregivers -Death benefits PIP Primary vs Excess Coverage - CORRECT ANSWER--PIP is primary coverage -Medical payments is excess that pays after PIP is exhausted What does PIP restrict? - CORRECT ANSWER-Insured's right to go to court Additional Duties for UM/UIM Claims - CORRECT ANSWER--Notify the police in the event of hit-and-run -If filing a lawsuit, forward legal documents to the insurer Additional Duties for Collision or Comprehensive Claims - CORRECT ANSWER-- Protect covered vehicles from further loss -Promptly notify the police in the event of theft -Allow insurer to inspect and appraise damaged vehicles PAP Part F - Policy Period/Territory Provision - CORRECT ANSWER-States that PAP coverage only applies to accidents and losses that occur: -During policy period -Within the United States -During shipment between ports in the policy territory PAP Part F - Changes to Policy Provision - CORRECT ANSWER-States that policy cannot be changed or waived without a written and signed endorsement PAP Part F - Insurer's Rights to Recover Payment Provision - CORRECT ANSWER-- Enforces subrogation -If insured is paid by both the insurer and the at-fault party, excess funds must be paid back to the insurer Popular PAP Endorsements - CORRECT ANSWER--Suspension of Insurance -Towing and Labor -Extended Non-Owned Coverage -Customized Equipment -Miscellaneous Vehicle -Non-Owner Coverage According to NC PAP Laws the drivers must prove ability to pay for damages through what? - CORRECT ANSWER--Motor Vehicle Liability Insurance -Bonds -Self-Insurance North Carolina Minimum Personal Auto Liability Limites - CORRECT ANSWER-- $30,000 per accident to one person for bodily injury or death -$60,000 per accidents to two or more persons for bodily injury or death -$25,000 per accident for property damage to others -Must include Uninsured Motorist (UM) Coverage North Carolina Penalties for Driving without insurance - CORRECT ANSWER--If driver hasn't been in any accidents while uninsured and obtains insurance within 10 days, it is a $50 fine for first offense, $150 fine for 3 or more offenses