Risk Management & Insurance Final Exam with 121 questions and answers verified

atricia purchased a Personal Auto Policy (PAP). Her car was rear-ended by a driver who fled the scene. Patricia suffered whiplash, migraine headaches, and she was unable to work. Which of the following coverages will cover her lost work earnings? - Part C Shawn has a PAP and has selected to only carry collision coverage fro Coverage D. One day, while driving, Shawn slid off a wet road and collided with a tree, causing major damage to his car. The mechanic estimates that the cost to repair Shawn's car is $5,000. If Shawn has a $1,000 deductible and the ACV of his car is $25,000, how much will Shawn receive from his insurance company for this loss? - $4,000 In addition to providing coverage in the United States, its territories and possessions, and Puerto Rico, where else does the PAP provide coverage? - Canada John occasionally borrows the car of his friend Sophie. Sophie has a PAP with liability limits of 50/200/25. John also has a PAP, and his liability limits 150/300/50. John had an accident while using Sophie's car and was found to be legally liable for $150,000 in bodily injury liability to one person. How much will be paid by John's policy? - $100,000 All of the following are covered persons under the medical payments (i.e. Part B) coverage of the PAP EXCEPT - A pedestrian struck by the named insured's auto Ken fell asleep while driving late at night. He crossed the center line and hit a car approaching from the other direction. The following losses occurred. - The driver of the other car suffered $30,000 in bodily injuries - Ken's car sustained $5,000 in damages - Ken incurred $5,000 in medical expenses - The car that Ken hit was a total loss Which of Ken's Personal Auto Policy (PAP) coverages will cover the damage to the car that Ken hit? - Part AWhich of the following statements about the payment of defense costs by 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. - I only Which of the following is considered to be a collision loss under Part D (coverage for damage to your auto) of the PAP? - The covered auto is damaged when it slid off an icy road and hit a fence