rmin 2005 exam 3 Questions and Answers
Graded A+
Which of the following statements is (are) true regarding auto accidents in the U.S.
- Correct answer-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. - Correct answer-
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? - Correct
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, answer-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? - Correct answer-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. - Correct answer-False
John accidentally backs into a tree and causes significant damage to his car -
Correct answer-Collision
Marge's car is significantly damaged by hail - Correct answer-Other than collision
David accidentally hits a pedestrian and is sued - Correct answer-Liability
Katrice is in an accident that she thinks might have been her fault. What IS one of
her duties after an accident? - Correct answer-Sending any important legal reports
about the accident to the insurer
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Graded A+
Which of the following statements is (are) true regarding auto accidents in the U.S.
- Correct answer-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. - Correct answer-
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? - Correct
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, answer-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? - Correct answer-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. - Correct answer-False
John accidentally backs into a tree and causes significant damage to his car -
Correct answer-Collision
Marge's car is significantly damaged by hail - Correct answer-Other than collision
David accidentally hits a pedestrian and is sued - Correct answer-Liability
Katrice is in an accident that she thinks might have been her fault. What IS one of
her duties after an accident? - Correct answer-Sending any important legal reports
about the accident to the insurer
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
