The appraisal provision in the Personal Auto Policy is used to determine the

Which of the following situations would be covered under the liability section of the PAP?I.A mechanic is sued by a pedestrian who is injured when the mechanic has an accident while road testing the insured’s auto. II.The daughter of the named insured is sued after she has an accident when a new friend she just met at a campus hangout lets her drive his car.

Most family heads need substantial amounts of life insurance. However, with limited income, money spent on life insurance reduces the amount of discretionary income available for other high-priority needs. What an insured person gives up when he or she purchases life insurance instead of using the premium dollars for other purposes is called the

Jenny purchased a Personal Auto Policy (PAP) that included property damage liability, collision coverage, medical payments coverage, and other-than-collision coverage. Jenny had too much alcohol to drink at a graduation party. While driving home from the party, Jenny ran off the road and hit a tree. Police responded to the accident, and Jenny was arrested for driving under the influence of alcohol. Which of the following statements is true regarding the damage to Jenny’s car?

Which of the following statements concerning the collision damage waiver when renting an auto is true? I. It relieves the renter from legal liability to third parties arising out of operation of the rented car.II. It relieves the renter from legal liability for the vehicle if it is damaged or stolen.

Which of the following situations would be covered under the liability section of the PAP?I.A mechanic is sued by a pedestrian who is injured when the mechanic has an accident while road testing the insured’s auto. II.The daughter of the named insured is sued after she has an accident when a new friend she just met at a campus hangout lets her drive his car.

All of the following statements about the termination provisions of the PAP are true EXCEPT

Which of the following statements is (are) true with respect to the collision damage waiver on rented cars?I.It is inexpensive and is provided at no charge by most rental car companies.II.It waives the renter’s liability for bodily injury liability arising out of use of the rented auto.

Joyce was injured by an uninsured drunk driver while she was riding in a friend’s car. Joyce and her friend each have a PAP with an uninsured motorists limit of $50,000. How much will be paid by each policy if it is determined that Joyce has $70,000 of bodily injuries?

Which of the following statements concerning individual medical expense insurance is (are) correct?I.Once the deductible is satisfied, no additional deductible is payable during the calendar year.II.Family deductibles are substantially higher than individual deductibles.