Multiple Choices (2 points each):
1.James was injured in an auto accident. The driver of the other car was at-fault. James is entitled to $100,000.00 for his injuries. In which of the following situations would James’s UNDERINSURED MOTORIST coverage applies to this accident?
The at-fault driver was a hit-and-run driver and was never found.
The driver of the other car had no auto insurance at the time of the accident.
The driver of the other car had insurance, but his Bodily Injury Limit is only $50,000.
The driver of the other car has adequate limits, but the insurer is insolvent.
2.Which of the flowing is an argument often cited by those who favor no-fault insurance?
No-fault laws increase the amount of premium percentages that benefit the insured.
No- fault laws have resulted in significant increases in auto insurance costs.
No-fault laws more fairly allocate costs to the drivers who are responsible for causing accidents.
No-fault benefits always compensate accident victims for the economic value of pain and suffering.
3.Which of the following best describes a loss that is covered as “other than collision loss” under part D of the Personal Auto Policy:
A driver hits another vehicle while swerving to miss a horse and rider.
A driver strikes a concrete barrier because another auto forced him off the road.
A driver throws open his car door in a grocery store parking lot and damages the door by striking a shopping cart.
A driver strikes a deer on a rural road and damages his car
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