Total medical expenses - per accident - will cover how much under most policies? quizlet

Most college instructors prefer to have their students participate actively in class. Ideally, students will ask their professor questions and answer their professor’s questions, making the classroom experience more interesting and useful. Many professors seek ways to encourage their students to participate in class. A statistics professor at a community college in upper New York state believes that there are a number of external actors that affect student participation. He believes that the time of day and the configuration of seats are two such factors. Consequently, he organized the following experiment. Six classes of about 60 students each were scheduled for one semester. Two classes were scheduled at 9:00 a.m., two at 1:00 p.m., and two at 4:00 p.m. At each of the three times, one of the classes was assigned to a room where the seats were arranged in rows of 10 seats. The other class was a U-shaped, tiered room, where students not only face the instructor, but face their fellow students as well. In each of the six classrooms, over five days, student participation was measured by counting the number of times students asked and answered questions. These data are displayed in the accompanying table. How many factors are there in this experiment? What are they?

uses 3 dollar amounts. In the event of an automobile accident, these numbers specify the maximum amount the policy will pay for:

• Bodily injury for each person involved;

• Bodily injury for the entire accident (regardless of the total number of persons involved); and

• Property damage.

Note: split limits are always expressed in this order.

For example, policy limits expressed as 25/50/25 would provide $25,000 coverage for bodily injury per person, with a maximum of $50,000 for all bodily injuries, and $25,000 property damage coverage per accident.

1st limit: bodily injury (per person)
2nd limit: bodily injury (per accident)
3rd limit: property damage

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1. Social Science
2. Business
3. Insurance

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Terms in this set (19)

All of the following are covered as supplementary payments under the liability section of the PAP EXCEPT
A) the cost of an appeal bond in a lawsuit stemming from an auto accident.
B) the cost of a bail bond for a traffic violation when no accident is involved.
C) interest which accrues on a liability judgment covered by the policy.
D) reasonable expenses incurred by the insured to testify at a trial involving a lawsuit covered by the policy.

B

Which of the following is a covered person under the medical payments coverage of the PAP?
A) a family member of the named insured if struck by an auto while crossing the street
B) a pedestrian struck by the named insured's auto
C) the named insured while she is operating her car as a taxi
D) a carjacker who is involved in an accident after stealing the insured's car

A

John has an auto which is covered for collision losses subject to a $250 deductible. Kate's auto also has collision coverage but her deductible is $500. Which of the following statements describes how a $2,000 collision loss will be paid if it occurs when John borrows Kate's car because his car is in the shop for repairs?
A) John's policy will pay $1,500, and Kate's policy will pay nothing.
B) John's policy will pay $1,750, and Kate's policy will pay nothing.
C) Kate's policy will pay $1,750, and John's policy will pay nothing.
D) Kate's policy will pay $1,500, and John's policy will pay $250.

D

The insurance company's options for settling a collision loss to a covered auto under the PAP include which of the following?
1. Pay the loss in money.
2. Repair or replace the damaged auto.
A) 1 only
B) 2 only
C) both 1 and 2
D) neither 1 nor 2

C

All of the following statements about the termination provisions of the PAP are true EXCEPT
A) the insured can cancel the policy for any reason.
B) the insurer can cancel a newly-written policy if it has been in force for fewer than 60 days.
C) the insurer can cancel the policy after it has been in force for 60 days only if the insured has three or more traffic violations.
D) the insurer can refuse to renew the policy at its annual anniversary date as long as proper notice is given prior to the end of the policy period.

C

Ken purchased a PAP with liability limits of 100/300/50, medical payments coverage, and collision coverage. Ken fell asleep while driving late at night. He crossed the center line and hit a car approaching from the other direction. The following losses occurred:
-The driver of the other car suffered $30,000 in bodily injuries.
-Ken's car sustained $5,000 in damages.
-Ken incurred $5,000 in medical expenses.
-The car that Ken hit was a total loss.
Which of Ken's Personal Auto Policy (PAP) coverages will cover the other driver's medical expenses?
A) bodily injury liability
B) collision coverage
C) medical payments coverage
D) property damage liability

A

Patricia purchased a Personal Auto Policy (PAP). Her car was rear-ended by a driver who fled the scene. Patricia suffered whiplash, migraine headaches, and she was unable to work. Which of the following coverages will cover her lost work earnings?
A) medical payments
B) uninsured motorists
C) underinsured motorists
D) bodily injury liability

B

A vehicle is considered a constructive total loss when
A) it cannot be repaired.
B) the repair cost exceeds the actual cash value.
C) it can be repaired, but the insured prefers a cash settlement.
D) it can be repaired, but the insurer prefers a cash settlement.

B

Gary purchased a Personal Auto Policy (PAP) that included collision coverage. Gary lost control of his vehicle on an icy road. He slid across the center line into oncoming traffic. Another vehicle hit his car, causing severe damage to it. Ignoring any deductible, what is the insurer's liability for damage to Gary's car?
A) the greater of the actual cash value or the amount necessary to repair or replace the vehicle
B) the replacement cost of the vehicle
C) the lesser of the actual cash value or the amount necessary to repair or replace the vehicle
D) the original purchase price of the vehicle

C

Which of the following situations would be covered by the liability section of an unendorsed PAP if the insured is legally liable?
A) The insured injures a pedestrian while operating a friend's new motorcycle.
B) The insured backs into and damages the garage door of his rented house.
C) The insured intentionally runs into another motorist's car after the driver cut in front of him.
D) The insured damages a parked car while driving a dump truck for his employer.

B

What is the purpose of the extended nonowned liability coverage endorsement to the PAP?
A) to provide liability coverage for an insured's employer when an insured uses his or her auto for business purposes
B) to provide liability coverage for an insured who occasionally operates a nonowned auto
C) to provide liability coverage for anyone who loans a covered auto to another driver
D) to provide liability coverage for an insured who operates a nonowned auto on a regular basis

D

All of the following are considered to be uninsured vehicles for purposes of the uninsured motorists coverage of the PAP EXCEPT
A) a vehicle owned by an individual who is insured, but for less than the amount required by the state's financial responsibility law.
B) a hit-and-run vehicle, the ownership of which cannot be determined.
C) a vehicle owned by an individual who purchased just enough liability insurance to satisfy the state's financial responsibility law.
D) a vehicle insured by a company which becomes insolvent before a claim can be paid.

C

All of the following statements about Part D (coverage for damage to your auto) of the PAP are true EXCEPT
A) Coverage may be purchased with or without collision insurance.
B) Losses are paid regardless of fault.
C) Coverage applies to a nonowned auto occasionally driven by an insured.
D) No coverage is provided for newly-acquired vehicles.

D

Duties of an insured after a collision loss covered under the PAP include which of the following?
1. Take reasonable steps to protect the vehicle from further damage.
2. Admit fault if the insured believes he or she caused the collision.
A) 1 only
B) 2 only
C) both 1 and 2
D) neither 1 nor 2

A

Ken purchased a PAP with liability limits of 100/300/50, medical payments coverage, and collision coverage. Ken fell asleep while driving late at night. He crossed the center line and hit a car approaching from the other direction. The following losses occurred.
-The driver of the other car suffered $30,000 in bodily injuries.
-Ken's car sustained $5,000 in damages.
-Ken incurred $5,000 in medical expenses.
-The car that Ken hit was a total loss.Which of Ken's Personal Auto Policy (PAP) coverages will cover Ken's medical expenses?
A) bodily injury liability
B) collision coverage
C) medical payments coverage
D) property damage liability

C

A car damaged in an auto accident may have reduced market or resale value after it is repaired. Some insureds have sought to recover this reduction in market or resale value. This loss in value is called
A) gap coverage.
B) betterment.
C) diminution.
D) subrogation.

C

Owen's car is insured under a Personal Auto Policy (PAP). A hail storm occurred one evening, and his car was severely damaged. Which PAP coverage, if Owen purchased it, would cover this damage to his auto?
A) property damage liability
B) uninsured motorists property damage
C) collision
D) other-than-collision

D

The appraisal provision in the Personal Auto Policy is used to determine the
A) value of a loss payable under property damage liability.
B) amount paid for a physical damage loss to the insured's auto if the insured and insurer disagree.
C) amount of auto insurance that should be purchased for an older/antique car.
D) value of the loss payable under the medical payments coverage.

B

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?
A) Damage to the car is covered under Jenny's property damage liability coverage.
B) Damage to the car is covered under Jenny's collision coverage.
C) Damage to the car is covered under Jenny's other-than-collision loss coverage.
D) There is no coverage as Jenny was intoxicated at the time of the accident.

B

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