Ch 10: Assignment - Protecting Your Property 8. The form and format of the personal automobile policy What coverages are provided in the personal automobile policy? As with the homeowner's policy, the personal automobile policy (PAP) is a comprehensive policy, because it includes several types of coverages bundled into a single package. The PAP has six parts. Organize the six components into their proper sequence and complete the associated statements where applicable. Part Policy Component Coverage Provided This pays for bodily injury and/or property damage caused by for which you This pays for accident-related expenses for up to years after the accident-provided that those expenses do not exceed the policy's limit. B This coverage is designed to protect policyholders, including the named insured and his or her family, when they are negligently injured by D This part in the PAP provides two types of optional protection: coverage and coverage. E F Complete the following statements regarding the coverages provided by the PAP. Insurance companies can express their liability coverage using either a combined limit or split limits. If a split limit is used, such as $100,000/$300,000/$100,000, then the second term in the limit expresses the maximum dollar amount that the insurance company will pay for . Most states allow you, as a policyholder, to seek reimbursement for your medical expenses up to the limit of your policy, even if the following are true. Check all that apply. You are occupying a vehicle that is not covered by the policy. You have already received compensation from your health insurance company. Your insurance company proves that someone else was at fault and you've already been paid by the other person's insurance company. Three conditions must be met for you to receive compensation under Uninsured Motorists Coverage. These are as follows. Check all that apply. Another motorist must have been at fault in the accident. The at-fault motorist is underinsured or lacks insurance altogether. The only damages sustained in the accident are personal injuries; property damages are not covered. . Underinsured motorists coverage is also available, and protects you, a policyholder, against damages caused by an at-fault or underinsured driver. If the at-fault driver causes damage than the limit of his or her liability coverage, then your company will make up the difference, up to , and then subrogates with the negligent driver. Lenders and lessors typically require this Collision coverage pays to repair the policyholder's vehicle coverage, and unless replacement cost coverage is taken, the insurance company will pay only the vehicle's Lenders and lessors typically require this Collision coverage pays to repair the policyholder's vehicle coverage, and unless replacement cost coverage is taken, the insurance company will pay only the vehicle's . One way to reduce your insurance premium is to your deductible. collision. This part of the PAP protects the Comprehensive coverage pays to repair damage to an insured's vehicle caused by perils vehicle but normally does not cover Read each of the following situations and determine if each is covered by the standard protections provided by the PAP. Situation Covered Not Covered 1. Alyssa decided to save money by reducing the amount of liability coverage provided by her policy. She carries only the state-minimum required coverage but had an accident that is expected to cost three times that limit. Will her policy cover the additional costs of the accident? o O 2. Brian carries $10,000 per person in medical payments coverage and was struck by a car while walking down the street with four friends. Can he seek reimbursement for his medical expenses under his PAP? o o 3. While driving drunk, Tim struck two pedestrians and damaged two cars. He was charged with several criminal offenses. Will his PAP pay for his defense against these charges? o 4. While shopping for Christmas, Crystal placed several bags of presents in the trunk and then went back into the mall. Five minutes after she walked away from the car, thieves broke into the trunk and stole the presents. Will her PAP pay to replace the presents? o O Grade It Now Save & Continue Ch 10: Assignment - Protecting Your Property 8. The form and format of the personal automobile policy What coverages are provided in the personal automobile policy? As with the homeowner's policy, the personal automobile policy (PAP) is a comprehensive policy, because it includes several types of coverages bundled into a single package. The PAP has six parts. Organize the six components into their proper sequence and complete the associated statements where applicable. Part Policy Component Coverage Provided This pays for bodily injury and/or property damage caused by for which you This pays for accident-related expenses for up to years after the accident-provided that those expenses do not exceed the policy's limit. B This coverage is designed to protect policyholders, including the named insured and his or her family, when they are negligently injured by D This part in the PAP provides two types of optional protection: coverage and coverage. E F Complete the following statements regarding the coverages provided by the PAP. Insurance companies can express their liability coverage using either a combined limit or split limits. If a split limit is used, such as $100,000/$300,000/$100,000, then the second term in the limit expresses the maximum dollar amount that the insurance company will pay for . Most states allow you, as a policyholder, to seek reimbursement for your medical expenses up to the limit of your policy, even if the following are true. Check all that apply. You are occupying a vehicle that is not covered by the policy. You have already received compensation from your health insurance company. Your insurance company proves that someone else was at fault and you've already been paid by the other person's insurance company. Three conditions must be met for you to receive compensation under Uninsured Motorists Coverage. These are as follows. Check all that apply. Another motorist must have been at fault in the accident. The at-fault motorist is underinsured or lacks insurance altogether. The only damages sustained in the accident are personal injuries; property damages are not covered. . Underinsured motorists coverage is also available, and protects you, a policyholder, against damages caused by an at-fault or underinsured driver. If the at-fault driver causes damage than the limit of his or her liability coverage, then your company will make up the difference, up to , and then subrogates with the negligent driver. Lenders and lessors typically require this Collision coverage pays to repair the policyholder's vehicle coverage, and unless replacement cost coverage is taken, the insurance company will pay only the vehicle's Lenders and lessors typically require this Collision coverage pays to repair the policyholder's vehicle coverage, and unless replacement cost coverage is taken, the insurance company will pay only the vehicle's . One way to reduce your insurance premium is to your deductible. collision. This part of the PAP protects the Comprehensive coverage pays to repair damage to an insured's vehicle caused by perils vehicle but normally does not cover Read each of the following situations and determine if each is covered by the standard protections provided by the PAP. Situation Covered Not Covered 1. Alyssa decided to save money by reducing the amount of liability coverage provided by her policy. She carries only the state-minimum required coverage but had an accident that is expected to cost three times that limit. Will her policy cover the additional costs of the accident? o O 2. Brian carries $10,000 per person in medical payments coverage and was struck by a car while walking down the street with four friends. Can he seek reimbursement for his medical expenses under his PAP? o o 3. While driving drunk, Tim struck two pedestrians and damaged two cars. He was charged with several criminal offenses. Will his PAP pay for his defense against these charges? o 4. While shopping for Christmas, Crystal placed several bags of presents in the trunk and then went back into the mall. Five minutes after she walked away from the car, thieves broke into the trunk and stole the presents. Will her PAP pay to replace the presents? o O Grade It Now Save & Continue