RMIN EXAM 2 (CHPS 7&8 CATS) 2025
QUESTIONS AND ANSWERS
Which of the following statements is (are) true regarding auto accidents in the U.S.?
A. The rate of auto accident fatalities has declined over the past 30 years
B. Men have a higher proportion of fatal accidents than women at most ages
C. Young drivers account for a disproportionate number fatal auto accidents
D. All of the above - ANS D. All of the above
Because Y's car is broken down, Y borrows his son's car to run an errand. The son, who lives
with Y in the same household, does not have his car insured. If Y has an accident, would Y's PAP
cover him? Explain why or why not.
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an
answer.
A. No, coverage does not exist. The residence does not matter.
B. Yes, coverage exists on the basis that the son's car is a temporary substitute automobile.
C. Yes, coverage exists because they are related.
D. No, coverage would never exist. - ANS B. Yes, coverage exists on the basis that the son's
car is a temporary substitute automobile.
Elisa has a PAP with the minimum limits required in Louisiana. She is involved in an accident
that injures Sammie, the driver in the other car. Sammie sues Elisa's insurer for $13,000 in
medical bills from the accident and wins. The next year Sammie sues the insurer for another
$5,000. Elisa and her insurer both think this is suspicious because it is a totally unrelated injury
to his original injury. The insurer decides not to fight the suit and pays Sammie $2,000. Which of
the following would happen next if Sammie continues to say he needs another $3,000?
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, Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an
answer.
A. The insurer will pay the claim if Sammie wins in court.
B. The insurer will defend Elisa against having to pay the $3,000 but will not pay it because
Elisa's per person bodily injury limits have been exhausted.
C. The insurer will not defend Elisa or pay the $3, - ANS C. The insurer will not defend Elisa or
pay the $3,000 because Elisa's per person bodily injury limits were exhausted.
Tracie is a Louisiana resident who carries a PAP with the minimum amount of insurance
required in her state. Heading to visit a friend, Tracie is driving in Arkansas where the liability
minimum requirements are $25,000/$50,000/$25,000. If Tracie has an accident in Arkansas,
that is her fault, which of the following is true about her liability coverage?
A. Tracie has more bodily injury (BI) per person and per accident and more property damage
(PD) liability per accident than the minimum required in Louisiana
B. Tracie has the same BI liability per person and per accident and the same PD liability per
accident
C. Tracie has more BI liability (per person/per accident) but less PD liability per accident
D. Tracie has more BI liability (per person/per accident) but the same PD liability per accident -
ANS D. Tracie has more BI liability (per person/per accident) but the same PD liability per
accident
True or False: Both Medical Payments and Uninsured Motorist coverage in a PAP ONLY pays if
the insured is not at fault for the accident.
A. True
B. False - ANS B. False
John accidentally backs into a tree and causes significant damage to his car.
A. Liability
B. Collision
C. Other than collision - ANS B. Collision
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QUESTIONS AND ANSWERS
Which of the following statements is (are) true regarding auto accidents in the U.S.?
A. The rate of auto accident fatalities has declined over the past 30 years
B. Men have a higher proportion of fatal accidents than women at most ages
C. Young drivers account for a disproportionate number fatal auto accidents
D. All of the above - ANS D. All of the above
Because Y's car is broken down, Y borrows his son's car to run an errand. The son, who lives
with Y in the same household, does not have his car insured. If Y has an accident, would Y's PAP
cover him? Explain why or why not.
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an
answer.
A. No, coverage does not exist. The residence does not matter.
B. Yes, coverage exists on the basis that the son's car is a temporary substitute automobile.
C. Yes, coverage exists because they are related.
D. No, coverage would never exist. - ANS B. Yes, coverage exists on the basis that the son's
car is a temporary substitute automobile.
Elisa has a PAP with the minimum limits required in Louisiana. She is involved in an accident
that injures Sammie, the driver in the other car. Sammie sues Elisa's insurer for $13,000 in
medical bills from the accident and wins. The next year Sammie sues the insurer for another
$5,000. Elisa and her insurer both think this is suspicious because it is a totally unrelated injury
to his original injury. The insurer decides not to fight the suit and pays Sammie $2,000. Which of
the following would happen next if Sammie continues to say he needs another $3,000?
Copyright ©2025 BRIGHTSTARS ALL RIGHTS RESERVED 1
, Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an
answer.
A. The insurer will pay the claim if Sammie wins in court.
B. The insurer will defend Elisa against having to pay the $3,000 but will not pay it because
Elisa's per person bodily injury limits have been exhausted.
C. The insurer will not defend Elisa or pay the $3, - ANS C. The insurer will not defend Elisa or
pay the $3,000 because Elisa's per person bodily injury limits were exhausted.
Tracie is a Louisiana resident who carries a PAP with the minimum amount of insurance
required in her state. Heading to visit a friend, Tracie is driving in Arkansas where the liability
minimum requirements are $25,000/$50,000/$25,000. If Tracie has an accident in Arkansas,
that is her fault, which of the following is true about her liability coverage?
A. Tracie has more bodily injury (BI) per person and per accident and more property damage
(PD) liability per accident than the minimum required in Louisiana
B. Tracie has the same BI liability per person and per accident and the same PD liability per
accident
C. Tracie has more BI liability (per person/per accident) but less PD liability per accident
D. Tracie has more BI liability (per person/per accident) but the same PD liability per accident -
ANS D. Tracie has more BI liability (per person/per accident) but the same PD liability per
accident
True or False: Both Medical Payments and Uninsured Motorist coverage in a PAP ONLY pays if
the insured is not at fault for the accident.
A. True
B. False - ANS B. False
John accidentally backs into a tree and causes significant damage to his car.
A. Liability
B. Collision
C. Other than collision - ANS B. Collision
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