The Snyder family purchased a three wheel all-terrain vehicle (ATV) for their children to use on an open field behind their property. Which one of the following endorsements should be attached to the Snyder’s Personal Auto Policy (PAP) to provide liability coverage for the ATV?
Select one:
A. Miscellaneous Type Vehicle Endorsement
B. Named Non-Owner Coverage Endorsement
C. Coverage for Damage to Your Auto (Maximum Limit of Liability) Endorsement
D. Auto Loan/Lease Coverage Endorsement
Correct. The Miscellaneous Type Vehicle Endorsement should be attached to the Snyder’s PAP to provide liability coverage for the ATV.
Dirk has a restored 1968 Mustang. Dirk has spent a lot of money and time bringing the car back to a like-new condition. Dirk insures the Mustang under his Personal Auto Policy (PAP) with collision and other than collision coverages. Dirk can best establish the value of the Mustang with his insurer by attaching which one of the following endorsements to his PAP?
Select one:
A. Named Non-Owner Coverage
B. Extended Non-Owned Coverage—Vehicles Furnished or Available for Regular Use
C. Miscellaneous Type Vehicle
D. Coverage for Damage to Your Auto (maximum limit of liability)
Correct. Dirk can best establish the value of the Mustang with his insurer by attaching a Coverage for Damage to Your Auto (maximum limit of liability) endorsement to his PAP, which allows him to include a stated amount of insurance in the policy.
The Transportation Network Driver Coverage (No Passenger) endorsement uses the wording of the Public or Livery Conveyance Exclusion and includes an exception that
Select one:
A. Specifies that coverage does not apply to Part C—Uninsured Motorists Coverage.
B. Provides coverage when the insured is logged into a transportation network platform until the driver accepts a passenger’s request.
C. Covers share-the-expense carpooling and operation of an auto without passengers while the driver is logged into a transportation network platform.
D. Adds a transportation network platform definition.
Correct. The Transportation Network Driver Coverage (No Passenger) endorsement uses the wording of the Public or Livery Conveyance Exclusion and includes an exception that covers share-the-expense carpooling and operation of an auto without passengers while the driver is logged in to a transportation network platform.
Which one of the following is correct regarding the Transportation Network Driver Coverage (No Passenger) endorsement and the Limited Transportation Network Driver Coverage (No Passenger) Endorsement to the personal auto policy?
Select one:
A. They both exclude coverage when a passenger is occupying the vehicle.
B. They cost the same amount of additional premium.
C. They both end coverage when an insured accepts a passenger’s request.
D. They both provide coverage until a passenger enters the vehicle.
Correct. Both the Transportation Network Driver Coverage (No Passenger) endorsement and the Limited Transportation Network Driver Coverage (No Passenger) Endorsement to the personal auto policy exclude coverage when a passenger is occupying the vehicle.
Which one of the following best describes what is included in a loss payment under the Auto Loan/Lease Coverage endorsement to the Personal Auto Policy (PAP)?
Select one:
A. The balance of the loan or lease amount for the vehicle
B. Balances transferred from previous loans or leases
C. Overdue lease or loan payments
D. Penalties imposed under a lease
Correct. The balance of the loan or lease amount for the vehicle is included in a loss payment under the Auto Loan/Lease Coverage endorsement to the PAP.
A company that uses a mobile application or website to connect riders with drivers and arrange transportation in a personal auto for a fee is called a
Select one:
A. Transportation network company.
B. Limited transportation network.
C. Livery conveyance.
D. Personal auto company.
Correct. A company that uses a mobile application or website to connect riders with drivers and arrange transportation in a personal auto for a fee is called a transportation network company.
Marge and her husband Jack have a Personal Auto Policy (PAP) to cover their two automobiles. Marge also has a company car provided by her employer. Which one of the following endorsements would best provide Marge with liability and medical payments coverage for her company car?
Select one:
A. Named Non-Owner Coverage endorsement
B. Extended Non-Owner Coverage—Vehicles Furnished or Available for Regular Use endorsement
C. Miscellaneous Type Vehicle endorsement
D. Auto Loan/Lease Coverage endorsement
Correct. The Extended Non-Owner Coverage—Vehicles Furnished or Available for Regular Use endorsement would provide excess over any other applicable insurance on the company car.
The Public or Livery Conveyance Exclusion Endorsement is designed to be attached to all personal auto policies (PAPs)
Select one:
A. Unless one of the Insurance Services Office, Inc. (ISO) transportation network driver endorsements is attached.
B. With insureds who are drivers for a transportation network company (TNC) but not to PAPs with insureds who are not TNC drivers.
C. And applies to only Part A—Liability Coverage.
D. In combination with the Transportation Network Driver Coverage (No Passenger) Endorsement.
Correct. The Public or Livery Conveyance Exclusion Endorsement is designed to be attached to all PAPs unless one of the ISO transportation network driver endorsements is attached.
The Named Non-Owner Coverage endorsement of the Personal Auto Policy (PAP) automatically covers
Select one:
A. Only a person who is named in the endorsement and the named insured’s spouse.
B. The named insured and all resident family members.
C. All persons who drive the vehicle specified in the endorsement.
D. Only a person who is named in the endorsement.
Correct. The Named Non-Owner Coverage endorsement of the Personal Auto Policy (PAP) automatically covers only a person who is named in the endorsement.
The Auto Loan/Lease coverage endorsement of the Personal Auto Policy (PAP) amends physical damage coverage for leased vehicles or vehicles with outstanding loan amounts to include
Select one:
A. An unpaid amount due on the lease or loan.
B. Penalties imposed under a lease for high mileage.
C. Costs for extended warranties.
D. Penalties imposed under a lease for excessive use.
Correct. The Auto Loan/Lease coverage endorsement of the Personal Auto Policy (PAP) amends physical damage coverage for leased vehicles or vehicles with outstanding loan amounts to include an unpaid amount due on the lease or loan.
People who do not regularly own an auto or who occasionally drive another person’s vehicle or a rental vehicle can secure coverage for the loss exposures arising out of their use of a nonowned auto by purchasing a Personal Auto Policy (PAP) with the
Select one:
A. Auto Loan/Lease Coverage endorsement.
B. Named Non-Owner Coverage endorsement.
C. Extended Non-Owned Coverage—Vehicles Furnished or Available for Regular Use endorsement.
D. Miscellaneous Type Vehicle endorsement.
Correct. People who do not regularly own an auto or who occasionally drive another person’s vehicle or a rental vehicle can secure coverage for the loss exposures arising out of their use of a nonowned auto by purchasing a Personal Auto Policy (PAP) with the named Non-Owner Coverage endorsement.
Katie was on vacation visiting her friend Emily. One day Katie borrowed Emily’s car and collided with a deer, resulting in $3,000 damage to Emily’s car. Emily and Katie each have a Personal Auto Policy (PAP) with collision and other than collision (OTC) coverages. Which one of the following would be the primary source of recovery for the damage to Emily’s car?
Select one:
A. Emily’s OTC coverage
B. Emily’s collision coverage
C. Katie’s OTC coverage
D. Katie’s collision coverage
Correct. Emily’s OTC coverage is the primary source of recovery for the damage to Emily’s car.
While backing a family car out of the driveway, Harry’s 18-year-old son accidentally collides with Harry’s car, which is parked on the street. Each car has $3,500 in damages. Both cars are insured on the same Personal Auto Policy (PAP), but Harry’s car has a $500 collision deductible and the other car has a $1,000 collision deductible. What is the total deductible amount that Harry’s PAP insurer will apply for the two vehicles?
Select one:
A. $500
B. $1,000
C. $1,500
D. $2,000
Correct. $1,000; If two or more autos that have collision coverage under the same policy are damage in the same collision, only the highest deductible applies. In this case, the highest deductible is $1,000.
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