Insuring Personal Auto Exposures CISR Exam 15 Questions with Answer,100% CORRECT

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Insuring Personal Auto Exposures CISR Exam 15 Questions with Answer Eligibility Requirements for an ISO Personal Auto Policy- CORRECT ANSWER 1. Ownership 2. Type of Vehicle 3. Usage In additio... n to meeting the eligibility requirements, clients must also meet the insurance company's underwriting requirements. Since underwriting requirements differ among insurance companies, company‐specific underwriting requirements are not part of this course. One more note regarding eligibility. It is important not to confuse eligibility with coverage, as eligibility does not determine coverage. Eligibility is based on the ownership, vehicle, and usage requirements at the time of application, while coverage is determined by policy language at the time of loss. Eligibility Requirements - Ownership - CORRECT ANSWER Ownership is the first eligibility requirement to consider. Vehicles must be owned (including a vehicle leased for a period of at least six months) by any of the following: 1. Individual 2. Individual and spouse who reside in the same household 1. Two individuals who jointly own a vehicle Individuals who are related and live in the same household Mike lives with his mother Martha. Martha is helping her son buy his first car. The car is titled to both Mike and Martha. 2. Individuals who are related and live in different households. Kathy's son Adam lives in an apartment across town. The car is driven by Adam and is titled in both Kathy and Adam's names. 3. Individuals who are not related and live in the same household Daniel and Lindsay share an apartment. They own a vehicle titled to both of them. The Joint Ownership Coverage endorsement is used when two individuals jointly own a vehicle. 3. Trust Owned The Trust Endorsement allows a vehicle whose title has been transferred to a trust to be considered owned by a person for coverage purposes. The grantor of the trust must be an individual, or individual and spouse. All vehicles on the policy must be owned by the trust. A vehicle owned by a corporation, LLC, partnership, or any other legal entity is not eligible to be written on a Personal Auto Policy. Eligibility Requirements - Type of Vehicle - CORRECT ANSWER Private Passenger Autos Private passenger autos are eligible to be written on an ISO Personal Auto Policy, which include pickups or vans if certain conditions are met. Private Passenger Autos: 4‐wheel motor vehicle (other than a truck type) May not be used for public or livery conveyance (held out to the general public for hire, such as taxi, Uber, Lyft, ) May not be rented to others Eligibility Requirements - Type of Vehicle (pickup or van specific) - CORRECT ANSWER 1. Has a Gross Vehicle Weight Rating (GVWR) of 10,000 pounds or less; and A pickup or van with a Gross Vehicle Weight Rating that exceeds 10,000 pounds is eligible if it has a symbol assigned in the Symbol Identification Manual. 2. Is not used to deliver or transport goods or materials unless it is: Incidental to the insured's business of installing, maintaining, or repairing furnishings or equipment; or Joe the plumber carries parts and supplies needed for his various jobs in his pickup . A farm or ranch vehicle Del uses his pickup to drop hay bales in his pasture to feed his cattle. Gross Vehicle Weight Rating (GVWR) refers to the maximum weight that a vehicle is designed to safely carry according to the vehicle manufacturer. This includes the combined total of weight of the vehicle, weight of the passengers, personal effects, vehicle fluids and accessories, and weight of the cargo itself. Some states have modified the GVWR eligibility by lowering it to 9,000 or increasing it to 12,000 or more. Eligibility Requirements - Type of Vehicle (other) - CORRECT ANSWER Trailers Miscellaneous Vehicles Vehicles such as motor homes, motorcycles, motorized golf carts, go carts, dune buggies, all‐terrain vehicles (ATV's), snowmobiles, etc., are eligible only with either the Miscellaneous Type Vehicle Endorsement or the Snowmobile Endorsement attached to the policy. What happens when a spouse not named in the Declarations is no longer a resident of the same household? - CORRECT ANSWER The spouse will remain a you only until the earlier of: 1. 90 days after he or she ceases to be a resident of the same household, 2. The effective date of the policy in his or her name, 3. The date the policy expires "Family Member" means - CORRECT ANSWER 1. Related to a you by blood, marriage, or adoption (includes a ward or foster child); and 2. A resident of the same household as a you The second category is - CORRECT ANSWER Collision The third category is - CORRECT ANSWER Other Than Collision. Which of the following vehicles is not eligible to be insured on a Personal Auto Policy? - CORRECT ANSWER A) A minivan titled to Mary and a non-related neighbor, Sally, who loaned Mary money to buy the van B) A pickup titled to both Sam and his resident son Robert C) A travel trailer solely owned by Sam D) A car jointly owned by Sam and Mary Smith, a married couple Which of the following vehicles is eligible to be insured on a Personal Auto Policy? - CORRECT ANSWER A pickup truck with a GVWR of 8,000 lbs. and A camping trailer and A private passenger car Correct Which of the following vehicles is eligible to be insured on a Personal Auto Policy? - CORRECT ANSWER A) A pickup truck owned by an individual who uses the truck in his farming business B) A private passenger car owned by John's parents, driven exclusively by John, to be insured on a policy in John's name. C) A private passenger car owned by Acme, Inc. D) A van primarily used by the insured in his courier business Jane and Joan are life-long friends who live across town from one another. They like to camp every weekend in the summer. They recently bought a four-wheel drive sport utility vehicle to make their camping trips easier. The vehicle is titled to both Jane and Joan. Is this vehicle eligible to be insured on a Personal Auto Policy? - CORRECT ANSWER A) Yes, with the addition of the Joint Ownership Coverage endorsement B) No C) Yes, all they must do is add the vehicle to the Declarations D) Yes, as long as the vehicle is used for only personal activities Policy Structure - CORRECT ANSWER Agreement Definitions Part A - Liability Coverage Part B - Medical Payments Coverage/Personal Injury Protection Part C - Uninsured/Underinsured Motorists Coverage Part D - Coverage for Damage to Your Auto Part E - Duties After an Accident or Loss Part F - General Provisions Whats in the declarations? - CORRECT ANSWER Name of insurance company providing the coverage Policy number Named insured(s) to whom the policy was issued Named insured's mailing address Policy period (effective date and expiration date) Vehicle garaging address (if different than the mailing address) Vehicle(s) insured, including VIN number Coverage provided (as determined by the coverages for which a limit of liability and/or a premium is shown) Deductible (for Other than Collision and Collision) Policy Form and endorsements that are part of the policy Name of loss payee (if applicable) [Show More]

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