4. The form and format of the personal automobilie 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 bundted into a single padage. The PAP has ahx parts. Organize the sio components into their proper sequence and complete the associated statements where applicable. 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 third 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 have already received compensation from your health insurance company. You are occupying a vehicle that is not covered by the policy. 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 recelve compensation under Uninsured Motorists Coverage. These are as follows, Check all that apply. Another motorist must have been at fault in the acdident. The only damages sustained in the accident are personal infuries; property damages are not covered. The at-fault motorist is underinsured or lacks insurance altogether. - 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. - Collision coverage pays to repair the policyholder's vehide coverage, and unless replacement cost coverage is taken, the insurance company will pay only the vehicle's Lenders and lessors typically require this - One way to reduce your insurance premlum is to your deductible. Underinsured motorists coverage is also available, and protects you, a policyholder, against damages caused by an at fault or underinsured uriver. 4 he 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. Collision coverage pays to repair the policyholder's vehicle coverage, and unless replacement cost coverage is taken, the insurance company will pay only the venau's - One way to reduce your insurance premium is to your deductible. - Comprehensive coverage pays to repair damaoe to an insured's vehide caused by perils collision. This part of the PAP protects the 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 1. Janet decided to save money by reducing the amount of liablity coverage provided by her pollicy. She carries only the state-minimum required coverage but had an accident that is expected to cost three times that limit. Will her pollicy cover the additional costs of the accident? 2. Larry 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? 3. While driving drunk, Felix struck two pedestrians and damaged two cars. He was charged with several criminal offenses. Wial his PAP pay for his defense against these charges? 4. While shopping for Christmas, Megan placed several bags of presents in the trunk and then went back into the mall. Five minutes after she walked away from the car, thileves broke into the trunk and stole the presents. Will her PAP pay to repiace the preserits
