Paul Wilson and his wife Rita drive to dinner one night in Paul and Rita's car, which is insured under our sample PAP for all available coverages ($500 collision deductible and $100 comprehensive {OTC} deductible), including Part C: Uninsured Motorists Coverage.Paul is driving and their friends Bill and Nancy Edwards are in the back seat.They approach an intersection with a green light showing in front of them.Suddenly, from the opposite direction, an unknown car fails to yield the right-of-way and turns directly in front of them.Paul hits the brakes and barely misses that car.But just as he successfully avoids that car, another car behind him, driven by Alice Jones, strikes Paul's car in the rear.All parties are injured and Paul's car is damaged.The first driver doesn't return to the accident scene and remains unknown.Alice's insurance policy had lapsed and she did not have a liability insurance policy in force at this time.

Who, if anyone, would beconsidered an "insured"underPart CUninsured Motorists Coverage, under these facts?

Select one:

a.Paul and Rita

b.Paul, Rita, Bill and Nancy

c.No one

d.Paul only

Paul Wilson and his wife Rita drive to dinner one night in Paul and Rita's car, which is insured under our sample PAP for all available coverages ($500 collision deductible and $100 comprehensive {OTC} deductible), including Part C: Uninsured Motorists Coverage.Paul is driving and their friends Bill and Nancy Edwards are in the back seat.They approach an intersection with a green light showing in front of them.Suddenly, from the opposite direction, an unknown car fails to yield the right-of-way and turns directly in front of them.Paul hits the brakes and barely misses that car.But just as he successfully avoids that car, another car behind him, driven by Alice Jones, strikes Paul's car in the rear.All parties are injured and Paul's car is damaged.The first driver doesn't return to the accident scene and remains unknown.Alice's insurance policy had lapsed and she did not have a liability insurance policy in force at this time.

Doesanyonehave a valid claim underPart CUninsured Motorists Coverage, under these facts?

Select one:

a.

Yes, Paul, Rita, Bill, and Nancy all have valid claims

b.

Yes, but only if the driver of the unknown vehicle can be identified and has no liability insurance

c.

No, because no insured was legally entitled to recover from the owner or operator of an "uninsured motor vehicle" as defined in the policy

d.

No, because one of the vehicles involved did not qualify as an "uninsured motor vehicle" as defined in the policy

Paul Wilson and his wife Rita drive to dinner one night in Paul and Rita's car, which is insured under our sample PAP for all available coverages ($500 collision deductible and $100 comprehensive {OTC} deductible), including Part C: Uninsured Motorists Coverage.Paul is driving and their friends Bill and Nancy Edwards are in the back seat.They approach an intersection with a green light showing in front of them.Suddenly, from the opposite direction, an unknown car fails to yield the right-of-way and turns directly in front of them.Paul hits the brakes and barely misses that car.But just as he successfully avoids that car, another car behind him, driven by Alice Jones, strikes Paul's car in the rear.All parties are injured and Paul's car is damaged.The first driver doesn't return to the accident scene and remains unknown.Alice's insurance policy had lapsed and she did not have a liability insurance policy in force at this time.

Do Paul and Rita have a valid claim under their PAP for thedamage to their carsustained in this accident?

Select one:

a.

No, the policy does not provide for payment for property damage caused by uninsured motorists

b.

Yes, under Part CUninsured Motorists Coverage

c.

No, because the hit-and-run car didn't make physical contact with Paul and Rita's car

d.

Yes, under Part DCoverage For Damage to Your Auto (subject to their collision deductible)

All of the following statements about themajor reasons that insurance policies contain exclusionsare true, EXCEPT:

Select one:

a.

To assist in providing thecoverage needed by the average insured

b.

To minimize moral or attitudinal hazard problems

c.

To improve profitability in the insurance industry

d.

To avoid duplication of coverage provided by other insurance policies