Ga Property & Casualty Insurance Study Guide Questions and Answers with complete solutions

"Your covered automobile" - all of the vehicles that you may be driving for the coverages in the policy and need coverage listed on the declarations page includes automobiles covered for newly acquired vehicles, additional and replacement Eligible Vehicles - o Private passenger automobiles o Trucks 10,000 lbs. o Vans 10,000 lbs. Owned or Leased No business activities covered for trucks and vans Financial Responsibility State - • Georgia is a financial responsibility state o To legally operate an automobile in the state of Georgia, a person must show that they are able to financially compensate the person(s) that they may injure or where they damage the other person's property Financial Responsibility - may be show by the following: 1. Personal automobile insurance - Liability coverage 2. Motor vehicle bond 3.Cash or security deposit Compulsory Insurance Laws - 25/50/25 state minimum limits (split) $25,000 bodily injury per person $50,000 bodily injury per occurrence $25,000 property damageOr $75,000 - Combined single limits Policy Terms - either 6 months or 1 year Personal umbrella - separate policy for catastrophic liability claims, in excess of primary coverage; must have primary coverage in force and raise the limits of liability Personal Automobile Policy - • Accounts for 40% of all premiums • Vehicles registered to individuals and operated primarily for personal activities o Driving to work is a personal activity o Policy allows use of vehicle for incidental business activities GA Assigned Risk - when someone cannot qualify for insurance, high premium Ineligible Vehicles - o Vehicles owned by businesses o Taxis o Motorcycles o Trucks/Vans 10,000 lbs. o Vehicles used for government purposes o Vehicles furnished for the regular use of an insured by an employer o Trailer - cannot propel itself when the trailer and the vehicle are connected, both are one in the same for liability claims Territorial Limits - o United States o Canada o United States Territories & Possessions Puerto Rico GuamUnited States Virgin Islands American Samoa o Coverage will not transfer to Mexico, can be purchased on a daily basis Insured - -Named Insured -Spouse, residing in household (automatically insured, even if not listed) • If the spouse leaves the Named Insured and takes a listed vehicle with them and sets up their own household, the vehicle is covered up to 90 days Family members residing in household Anyone driving with permission Occupying - while in, on, upon, entering onto or exiting from ... - newly acquired additional has 14 days to add to the policy newly acquired replacement - physical damage coverage up to 14 days, all other coverage until the end of the policy term Coverage A - Liability- paid to other person because the insured is liable meets the financial responsibility standard in GA there must be proof that the insured caused the accident Mandatory in GA Third party coverage Negligence must apply Intentional acts are excluded, ex: Road Rage o Bodily Injury o Property DamagePayment is made only if the insured is negligent o Supplementary Payments Defense Bail Bond reimbursement - up to $250, for an incident involving an auto Loss of earnings - $200/day, an incentive for the insured to cooperate Reasonable expenses Cost of an appeals bond, include whatever the cost may be to have the judgment overturned - UNLIMITED Coverage B - Medical Payments - Optional coverage that can be used by the Named Insured and family members that applies for accidents occurring while occupying the vehicle and even when struck as a pedestrian coverage applies to reasonable expenses incurred with in three years from the date of accident for necessary medical and related services. Payment regardless of fault Covers the Insured: • Named Insured • Spouse • Family Members • Passengers Medical payment coverage limits are per person, per accident