Key Terms
Which valuation method used by insurers to determine the payout for a loss aligns most closely with the principle of indemnity by accounting for depreciation?
Actual Cash Value (replacement cost - depreciation)
True or False: Under Part 1 of the PAP, the insurer will make payments for accidents that occur outside of the State of Massachusetts.
FALSE: Under Part 1: Bodily Injury to Others, the insurer will not cover injuries to any occupant pf the insured auto, accidents outside of MA.
What symbol in the Commercial Auto Policy represents "any auto"?
Symbol 1
What is the name of the coverage form designed specifically for businesses that transport goods or property for others?
Truckers Coverage Form
John’s car is rear-ended while stopped at a red light. Which part of his Personal Auto Policy will cover the damage to his car?
Part 7: Collision Coverage
What Massachusetts-specific endorsement modifies the standard Personal Auto Policy to comply with state laws?
Massachusetts Mandatory Endorsement (M-0099-S)
What is the minimum liability coverage required for bodily injury to one person in Massachusetts?
$20,000
What is the name of the standard form used for Commercial Auto Policies?
Business Auto Coverage Form
What type of businesses are specifically covered under a Garage Coverage Form?
Auto dealerships, auto repair and service garages, and business that park vehicles for others.
Sarah has a MA Auto Insurance Policy with split limits of $25,000/$50,000 bodily injury coverage. She hits a pedestrian who claims damages of $30,000. What is the maximum liability of her policy for this accident?
$25,000
What Massachusetts program assigns high-risk drivers to insurance companies when they cannot obtain coverage in the voluntary market?
Massachusetts Auto Insurance Plan (MAIP)
Which coverage under the Personal Auto Policy pays for damage to your vehicle caused by events like theft, fire, or vandalism?
Part 9: Comprehensive Coverage
What is the maximum dollar amount an insurer will pay for loss to sound equipment permanently installed in a vehicle insured under a business auto policy?
$1,000
What coverage protects a trucker for liability arising from the use of non-owned trailers in their possession?
Trailer Interchange Coverage
A tow truck was stolen from the insured's premises. The insured has loss of use coverage on his commercial auto policy. How much will the insured be able to collect from the coverage if unable to use the tow truck in its operations for 40 days?
$600
The loss of use coverage extension covers $20/day to a maximum of $600.
What provision in an auto insurance policy extends coverage to a newly acquired vehicle for a limited time, typically requiring the insured to notify the insurer within a specified period?
Newly Acquired Auto Provision
What are the four compulsory insurance coverages required by MA law?
Part 1: Bodily Injury to others
Part 2: Personal Injury Protection
Part 3: Bodily Injury Caused by an Uninsured Auto
Part 4: Damage to Someone Else's Property
What type of coverage protects a business from liability for damage to customers' vehicles while in the business's care, custody, or control?
Garagekeepers Coverage
According to the Motor Carrier Act of 1980, what is the minimum amount of insurance a trucking company is required to carry on vehicles that transport oil and certain categories of hazardous waste?
$1 million
Lisa has $5,000 of medical coverage on her MA Auto Insurance Policy at the time of a covered accident. Lisa and two passengers are injured, and the medical treatment costs $7,000 for Lisa; $4,000 for Paul; and $8,000 for Steve. How much will the policy pay under medical payments coverage?
$14,000
What provision in a commercial auto policy allows the insurer to recover amounts paid for a loss from a third party who was responsible for the damage?
Subrogation
If an insured is injured and has health insurance that will pay some of the medical expenses, how much will the Personal Injury Protection coverage pay out initially?
$2000
What endorsement provides coverage for individuals who do not own a vehicle but may drive non-owned or hired autos for business purposes under a commercial auto policy?
Use of Other Autos - Broad Form Endorsement
What Commercial Auto Policy endorsement provides coverage for physical damage to a vehicle while it is being transported by a carrier?
Motor Carrier Coverage endorsement
John has an automobile policy with limits of $50,000 per person and $100,000 per occurrence. An accident occurs and two people are injured, one with $25,000 in injuries and the other with $75,000 in injuries. If John is found responsible, what is the maximum amount his policy will pay for the injuries?
$75,000