Risk Management

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Quiz 14 :

Multirisk Management Contracts: Auto

Quiz 14 :

Multirisk Management Contracts: Auto

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Opponents of no-fault assert that many people who favor no-fault do so primarily because they expect it will be cheaper than the present system.
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True False
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True

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Like in homeowner's policy, intentionally caused (nonfortuitous) harm is always excluded in automobile insurance.
Free
True False
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True

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When a negligent driver meets the legal insurance requirements but is legally responsible for additional amounts, the driver is not an uninsured motorist.
Free
True False
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True

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Financial responsibility laws do not have any effect on the percentage of drivers with auto liability insurance.
True False
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The JUA differs from an auto insurance plan in that only designated servicing carriers can issue coverage to participants.
True False
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Every type of nonexcluded loss-causing event other than collision is considered comprehensive.
True False
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Under the no-fault concept, first-party benefits such as PIP are provided with regard to fault as a way to encourage legal battles.
True False
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Under modified no-fault laws, only no-fault benefits are available for nonserious injuries resulting in losses below the threshold.
True False
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In add-on plans, rights to litigate are not affected.
True False
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Coverage applies for accidents arising out of ownership, maintenance, or use of a motor vehicle you own or have available for regular use even if it is not a declared auto in the declarations section of the policy.
True False
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In the event of a loss while you are driving a friend's car, your friend's insurance is primary coverage, or the first payee in a situation where two or more coverages apply, and your insurance is excess coverage.
True False
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A passenger in your car who is injured can recover under both liability and medical payments coverages for the same losses.
True False
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In add-on plans, auto plans do not limit rights to litigate and do not require that insurers offer first-party coverage similar to what is available in no-fault states.
True False
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The limit of liability for medical payments is on a per person basis, such as $5,000 per person.This is the maximum limit of liability for each person injured in any one accident.If you have two autos insured, with a medical payments limit for each shown on the declarations page, you cannot stack the limits together.
True False
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The substandard market is created by state law.
True False
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The insurer does not have the right to settle claims without the insured's approval even if it finds this expedient.
True False
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Uninsured motorists coverage does not pay for bodily injuries caused by an accident with another vehicle whose driver is negligent and whose insurance company is insolvent.
True False
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Family health insurance company is broader than medical payments coverage of PAP.
True False
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Maryland State Fund is a government-operated residual market company that provides coverage to drivers who cannot obtain insurance through the regular market.
True False
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Auto insurance plans have provided significant profits to the auto insurance industry because of generally higher rates than those found in the voluntary market.
True False
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