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RMIN 4000 UGA test 3 Questions and
Correct Answers
Auto Insurance Ans: -6 or 12 month policy
-premiums usually paid monthly or quarterly
5 general types of auto coverage Ans: 1. liability
2. damage
3. uninsured motorist
4. medical payments
5. convenience coverage
Personal Auto Policy (PAP) Ans: --3rd party coverages (payments
to someone else):
•Part A: Liability Coverage (required by state)
--1st party coverages (payments to you):
•Part B: Medical Payments Coverage
•Part C: Uninsured Motorists Coverage
•Part D: Coverage for Damage to Your Auto
--Other provisions:
•Part E: Duties after an Accident or Loss
•Part F: General Provisions
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What vehicles are covered? Ans: •Any vehicle shown in the
declarations
•A newly acquired vehicle (notify insurer ASAP, definitely within
14 days)
•A trailer owned by the named insured
•A temporary substitute vehicle, which is a non-owned auto or
trailer used temporarily because of mechanical breakdown, repair,
servicing, loss, or destruction of a covered vehicle
damage coverage Ans: damage to your vehicle
uninsured motorist coverage Ans: 3rd party without insurance
causes BI to you or your passengers
medical payments coverage Ans: BI to you or your passengers
Convenience Coverage Ans: towing, rental reimbursement, etc.
Part A: Liability Coverage Ans: •Required by state law
•There is a duty to own, maintain and operate your vehicle in a
manner that does not injure others or damage their property.
•If you fail in that duty - even accidentally - you are responsible
for injuries / damages to others.
•Insuring agreement- insurer pays any damages for PI or BD for
which any insured is legally responsible because of an auto
accident
Part A: Who is covered? Ans: •The named insured and any
resident family member
•Any person using the named insured's covered auto with
permission
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, 3 | Page
•Any person or organization legally responsible for any insured's
use of a covered auto on behalf of that person or organization
oEx: Employer is sued if you get in an accident while on a work trip
oDoes not apply if you're driving a company car
Part A: Relevant Exclusions Ans: •Intentional injury or damage
•Property owned or transported by the insured
•Property rented, used, or in the insured's care
•Use as a public or livery conveyance
•Using a vehicle without reasonable belief the person is entitled to
do so
•Vehicle with fewer than four wheels
•Vehicle furnished for the named insured's regular use
Part A: Limits Ans: •Split limits: limits for BI per person, BI per
accident, and PD are stated separately (BI pp/BI pa/PD)
•Minimum limits in GA: 25/50/25
o$25,000 BI per person
o$50,000 BI per accident
o$25,000 PD per accident
•Is this enough? If you have insufficient liability limits...
oSeize assets
oGarnish up to 25% of wages
© 2025 All rights reserved
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Defense Costs Ans: •Defense costs can be huge. Good thing the
Liability Section covers loss IN ADDITION to the policy limits.
•This means that the costs of defense will not erode the coverage
limits available for payment of claims.
•But, the duty to defend ENDS when limits have been exhausted
through actual payment of claims.
Part A: Out-of-State Coverage Ans: •If you have minimum limits in
your state and you get in an accident in another state with higher
minimum limits the PAP automatically provides higher limits.
Part B: Medical Payments Ans: •Covers all reasonable medical and
funeral expenses incurred by an insured in an accident
•The named insured and family members are covered:
oWhile occupying any motor vehicle, or
oAs pedestrians when struck by a motor vehicle
•Other persons occupying a covered auto are covered, but only in
an owned vehicle
•Usually low limits (~$5,000)
Part B: What's the Point? Ans: •This pays regardless of fault.
•Pays some medical costs of driver, even if it is driver's negligence.
•It may be difficult to determine fault at time of accident, this will
provide initial treatment.
•Once fault is determined, amounts usually paid out of the
negligent party's Part A.
Difference between Part A and Part B Ans: •Do not mistake Part B
Med Pay with paying Medical Expenses for Bodily Injury in Part A.
© 2025 All rights reserved
RMIN 4000 UGA test 3 Questions and
Correct Answers
Auto Insurance Ans: -6 or 12 month policy
-premiums usually paid monthly or quarterly
5 general types of auto coverage Ans: 1. liability
2. damage
3. uninsured motorist
4. medical payments
5. convenience coverage
Personal Auto Policy (PAP) Ans: --3rd party coverages (payments
to someone else):
•Part A: Liability Coverage (required by state)
--1st party coverages (payments to you):
•Part B: Medical Payments Coverage
•Part C: Uninsured Motorists Coverage
•Part D: Coverage for Damage to Your Auto
--Other provisions:
•Part E: Duties after an Accident or Loss
•Part F: General Provisions
© 2025 All rights reserved
, 2 | Page
What vehicles are covered? Ans: •Any vehicle shown in the
declarations
•A newly acquired vehicle (notify insurer ASAP, definitely within
14 days)
•A trailer owned by the named insured
•A temporary substitute vehicle, which is a non-owned auto or
trailer used temporarily because of mechanical breakdown, repair,
servicing, loss, or destruction of a covered vehicle
damage coverage Ans: damage to your vehicle
uninsured motorist coverage Ans: 3rd party without insurance
causes BI to you or your passengers
medical payments coverage Ans: BI to you or your passengers
Convenience Coverage Ans: towing, rental reimbursement, etc.
Part A: Liability Coverage Ans: •Required by state law
•There is a duty to own, maintain and operate your vehicle in a
manner that does not injure others or damage their property.
•If you fail in that duty - even accidentally - you are responsible
for injuries / damages to others.
•Insuring agreement- insurer pays any damages for PI or BD for
which any insured is legally responsible because of an auto
accident
Part A: Who is covered? Ans: •The named insured and any
resident family member
•Any person using the named insured's covered auto with
permission
© 2025 All rights reserved
, 3 | Page
•Any person or organization legally responsible for any insured's
use of a covered auto on behalf of that person or organization
oEx: Employer is sued if you get in an accident while on a work trip
oDoes not apply if you're driving a company car
Part A: Relevant Exclusions Ans: •Intentional injury or damage
•Property owned or transported by the insured
•Property rented, used, or in the insured's care
•Use as a public or livery conveyance
•Using a vehicle without reasonable belief the person is entitled to
do so
•Vehicle with fewer than four wheels
•Vehicle furnished for the named insured's regular use
Part A: Limits Ans: •Split limits: limits for BI per person, BI per
accident, and PD are stated separately (BI pp/BI pa/PD)
•Minimum limits in GA: 25/50/25
o$25,000 BI per person
o$50,000 BI per accident
o$25,000 PD per accident
•Is this enough? If you have insufficient liability limits...
oSeize assets
oGarnish up to 25% of wages
© 2025 All rights reserved
, 4 | Page
Defense Costs Ans: •Defense costs can be huge. Good thing the
Liability Section covers loss IN ADDITION to the policy limits.
•This means that the costs of defense will not erode the coverage
limits available for payment of claims.
•But, the duty to defend ENDS when limits have been exhausted
through actual payment of claims.
Part A: Out-of-State Coverage Ans: •If you have minimum limits in
your state and you get in an accident in another state with higher
minimum limits the PAP automatically provides higher limits.
Part B: Medical Payments Ans: •Covers all reasonable medical and
funeral expenses incurred by an insured in an accident
•The named insured and family members are covered:
oWhile occupying any motor vehicle, or
oAs pedestrians when struck by a motor vehicle
•Other persons occupying a covered auto are covered, but only in
an owned vehicle
•Usually low limits (~$5,000)
Part B: What's the Point? Ans: •This pays regardless of fault.
•Pays some medical costs of driver, even if it is driver's negligence.
•It may be difficult to determine fault at time of accident, this will
provide initial treatment.
•Once fault is determined, amounts usually paid out of the
negligent party's Part A.
Difference between Part A and Part B Ans: •Do not mistake Part B
Med Pay with paying Medical Expenses for Bodily Injury in Part A.
© 2025 All rights reserved
