AUTO DAMAGE & THEFT FINAL STUDY
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
●● Other Insurance. Answer: This clause outlines how Personal Injury
Protection coverage will pay if there is other Personal Injury Protection
insurance that applies to the same loss.
●● Pro-rata. Answer: Means the insurer will only pay its share of the
loss in proportion that its limit of liability has to the total of all limits
that are applicable to the loss.
●● Excess. Answer: Means that this coverage will pay only after any
other applicable coverage has exhausted its limit on the loss.
●● Assignment of Benefits. Answer: This clause allows the insurer to
pay a physician or medical provider directly if the insured provides a
signed, written request to do so.
●● Other Provisions. Answer: This clause outlines how benefits are paid
and modifies the policy provision of subrogation.
●● Insuring Agreement (Uninsured/Underinsured Motorist). Answer:
Outlines the insurer's promise to pay damages a covered person is
, legally entitled to recover from an uninsured/underinsured motorist for
bodily injuries and/or property damage.
●● Uninsured Motorist. Answer: An owner/operator of a vehicle that
does not have liability insurance or a liability bond that applies at the
time of accident.
●● Underinsured Motorist. Answer: An owner/operator of a vehicle that
has liability insurance or a bond that applies to the loss, but is not
enough to pay the full amount of the insured's damages.
●● Exclusions (Uninsured/Underinsured Motorist). Answer: Perils that
are not covered by the insurance policy.
●● Uninsured/Underinsured Motorist Property Damage Deductible.
Answer: The first $250 of damage to covered property as a result of an
uninsured/underinsured motorist accident.
●● Limit of Liability (Property Damage). Answer: The maximum
amount the policy will pay for any single accident, as shown on the
Declarations page.
●● Transportation Expenses. Answer: This provision pays for
transportation expenses incurred in the event of a total theft of a covered
auto.
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
●● Other Insurance. Answer: This clause outlines how Personal Injury
Protection coverage will pay if there is other Personal Injury Protection
insurance that applies to the same loss.
●● Pro-rata. Answer: Means the insurer will only pay its share of the
loss in proportion that its limit of liability has to the total of all limits
that are applicable to the loss.
●● Excess. Answer: Means that this coverage will pay only after any
other applicable coverage has exhausted its limit on the loss.
●● Assignment of Benefits. Answer: This clause allows the insurer to
pay a physician or medical provider directly if the insured provides a
signed, written request to do so.
●● Other Provisions. Answer: This clause outlines how benefits are paid
and modifies the policy provision of subrogation.
●● Insuring Agreement (Uninsured/Underinsured Motorist). Answer:
Outlines the insurer's promise to pay damages a covered person is
, legally entitled to recover from an uninsured/underinsured motorist for
bodily injuries and/or property damage.
●● Uninsured Motorist. Answer: An owner/operator of a vehicle that
does not have liability insurance or a liability bond that applies at the
time of accident.
●● Underinsured Motorist. Answer: An owner/operator of a vehicle that
has liability insurance or a bond that applies to the loss, but is not
enough to pay the full amount of the insured's damages.
●● Exclusions (Uninsured/Underinsured Motorist). Answer: Perils that
are not covered by the insurance policy.
●● Uninsured/Underinsured Motorist Property Damage Deductible.
Answer: The first $250 of damage to covered property as a result of an
uninsured/underinsured motorist accident.
●● Limit of Liability (Property Damage). Answer: The maximum
amount the policy will pay for any single accident, as shown on the
Declarations page.
●● Transportation Expenses. Answer: This provision pays for
transportation expenses incurred in the event of a total theft of a covered
auto.
