Property & Casualty Insurance Practice Test
P&C Insurance Personal Auto Practice Questions
Personal Auto makes up 9 of every 50 questions on a Tigertest P&C Insurance practice test. Here are 10 of the 36 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on the general (national) portion of the property and casualty producer exam outlines. State laws and the state portion are not covered.
1. Part A of the Personal Auto Policy provides:
- A.Collision coverage for the covered auto
- B.Liability for bodily injury and property damage
- C.Medical payments for the insured's passengers
- D.Payment when an uninsured driver injures the insured
Answer: B. Part A pays damages the insured owes to others and defends suits. Medical payments are Part B, uninsured motorists Part C and damage to the auto Part D.
2. Which supplementary payment under Part A is paid in addition to the limit of liability?
- A.Collision repairs to the insured's own car
- B.Medical bills of the insured's passengers
- C.A rental car while the insured's car is repaired
- D.Up to $250 for bail bonds
Answer: D. Supplementary payments include bail bonds up to $250, appeal bonds, interest on judgments and loss of earnings. Repairs and rental expense belong to Part D.
3. Part A pays the insured's loss of earnings for attending hearings or trials at the insurer's request, up to:
- A.$200 per day
- B.$250 per day
- C.$500 per day
- D.$100 per day
Answer: A. The PAP supplementary payments allow $200 per day for loss of earnings. The CGL provides $250 per day, a common exam trap.
4. An insured with 100/300/50 split limits causes an accident that injures three people with claims of $120,000, $90,000 and $80,000, plus $60,000 in property damage. How much does the insurer pay in total?
- A.$350,000
- B.$290,000
- C.$320,000
- D.$340,000
Answer: C. Bodily injury is capped at $100,000 per person, so the insurer pays $100,000 + $90,000 + $80,000 = $270,000, within the $300,000 per accident limit. Property damage is capped at $50,000, for a total of $320,000.
5. In 25/50/25 split limits, the middle number represents the maximum paid for:
- A.Medical payments per person
- B.Property damage in one accident
- C.Bodily injury in one accident
- D.Bodily injury to any one person
Answer: C. Split limits read as per person bodily injury, per accident bodily injury, and per accident property damage. The first number is per person.
6. A combined single limit of $300,000 means:
- A.$300,000 for all injury and damage in one accident
- B.$300,000 is the annual aggregate for all accidents
- C.$300,000 is available for each injured person
- D.$300,000 applies to property damage only
Answer: A. A CSL is one pool for all damages in an accident, which is more flexible than split limits. Auto liability limits are per accident, not aggregate.
7. If an insured drives into a state that requires higher minimum liability limits than the policy carries, the PAP:
- A.Provides only the limits shown in the declarations
- B.Suspends coverage until an endorsement is added
- C.Provides the higher limits only if the insurer was notified in advance
- D.Automatically provides the higher limits required
Answer: D. The out of state coverage provision raises limits to the minimum required where the accident occurs and provides any required no-fault benefits. No advance notice is needed.
8. Under Part A, who is an insured includes:
- A.Any family member using an employer-owned vehicle for business
- B.Any person using your covered auto with permission
- C.Any person using any auto the named insured has ever owned
- D.Only the named insured and spouse
Answer: B. Insureds are the named insured and family members for any auto, plus anyone using the covered auto with permission. A vehicle furnished or made available for a family member's regular use, such as a company car, is excluded unless covered by endorsement.
9. Which vehicle qualifies as a 'your covered auto' under the PAP?
- A.A motorcycle owned by a family member
- B.A trailer owned by the named insured
- C.A 20,000 pound delivery truck owned by the insured
- D.Any vehicle borrowed from a neighbor
Answer: B. Owned trailers are covered autos. Motorcycles need the miscellaneous type vehicle endorsement, and heavy trucks are not eligible.
10. An insured's car is in the shop and the insured borrows a friend's car. Under the PAP, the friend's car is:
- A.Excluded as a non-owned auto
- B.Covered only if added by endorsement
- C.Covered only under Part D
- D.A temporary substitute covered auto
Answer: D. A non-owned auto used as a temporary substitute for a covered auto that is out of use is treated as a covered auto. Part D also extends to it, but liability is not limited to Part D.
Practice all 36 personal auto questions, and the rest of the 200-question bank, in the free P&C Insurance training sets. Questions you miss come back until you have mastered them.
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