Auto Insurance Exam FX Questions and Answers with complete solutions

Owned Autos - Answer-Eligible vehicles titled by the insured or acquired during the policy period Non Owned Autos - Answer-any private passenger auto, pickup van or trailer operated by or in the custody of the named insured or family member, but are not titled by or furnished for the regular use of the insured. Hired Autos - Answer-leased hired, rented or borrowed from someone other than an employee or partner Liability coverage protects the insured against loss arising from legal liability when an auto that the insured owns, operates or maintains is involved in an accident - Answer-*Bodily Injury & property damage due to an accident *Defense cost as long as the policy covers a particular loss *Costs for settling or defending the insured as deemed appropriate An insured is the person named in an insurance policy that is protected under the contract and to whom the insurer pay benefits or provide services - AnswerBodily injury per person/ All Bodily Injuries/property damage per accident - Answer-25/50/25 Split Limit coverage uses 3 dollar amounts - Answer-Bodily injury per person/ All Bodily Injuries/property damage per accident Combined Single Limit - Answer-uses one dollar amount indicating the max coverage for all losses regardless of the number of people involved or the amount of property damaged Out of State COverage - Answer-if a covered auto is involved in an auto accident that occurs in any state or Canadian province other that then one in which the auto is principally garaged, the out of state coverage will apply. Personal Auto Policy (PAP) PurposeDefinitions Types of Autos A B C D E F - Answer-insurance policy for owners of private passenger vehiclesPart A - Liability Coverage Part B- Medical Payments COverage Part C - Uninsured Motorist Coverage Part D - COverage for Damage to your Auto Part E - Duties after an accident or loss Part F - General Provisions PAP contains insuring agreement, exclusions and limits of liability - Answer-Legal liability, injury to the insured or members of the insureds family, damage to or loss of the auto itself Bodily Injury - Answer-means bodily harm, sickness or disease including death that results from the injury Property Damage - Answer-Physical injury destruction or loss of use of tangible property