Property & Casualty – ExamFX Questions With Complete Solutions

If an auto policy has split limits of 30/50/25, what is the maximum amount the policy will pay for injuries to one person in a single accident? correct answer: $30,000 - Split limits expressed as 30/50/25 would provide $30,000 coverage for bodily injury per person, $50,000 for all bodily injuries, and $25,000 property damage coverage per accident. What Persoal Auto coverage would pay for the insured's travel expenses and defense costs incurred while the insured is involved in the settlement process for a covered loss? correct answer: Part A - Liability Coverage - Liability coverage protects the insured against loss arising from legal liability when an automobile that the insured owns, operates, or maintains is involved in an accident. That includes the insured's defense and settlement costs. Who does the Garage Coverage form insure? correct answer: Auto dealers, service stations, auto repair shops - Garage coverage form is used for businesses that regularly have autos of others in their care, custody, or control. What is a covered auto? correct answer: A vehicle shown in the policy Declarations - A covered auto includes automobiles listed in the Declarations, as well as trailers owned by the insured and newly acquired autos. Who is considered insured under Part A - Liability of a personal auto policy? correct answer: The vehicle owner or his/her family member, or any person using the covered auto with permission. - Under Part A - Liability, the insured is the vehicle owner, his or her family, and persons using covered autos with the owner's permission. A vehicle rented from a commercial rental company is know as what type of auto? correct answer: Hired auto - Hired autos include those that are leased, hired, rented, or borrowed from someone other than an employee or partner. Rental Reimbursement endorsement is available only if an auto policy has what type of coverage? correct answer: Other Than Collision Coverage - The Rental Reimbursement endorsement is only available if the policy includes Other Than Collision coverage.