RMI 211 - Chapter 20 & 21 Homework - 15 points

Chapter 20

Review Questions

1. The Personal Auto Policy (PAP) contains several coverages that meet the insurance needs of typical insureds. For each of the following coverages, briefly describe the type of coverage provided, and give an example of a loss that would be covered.

a. Part A: Liability coverage

b. Part B: Medical Payments Coverage

c. Part C: Uninsured Motorists Coverage

d. Part D: Coverage for Damage to Your Auto

2. The PAP provides liability coverage to four groups. Identify the four groups of persons or parties who can be insured under the PAP.

3. Does the PAP cover you if you are driving a vehicle in a foreign country? Explain your answer.

Chapter 21

1 What is a financial responsibility law?

2. What is a compulsory insurance law?

3. Describe the characteristics of a low-cost auto insurance plan.

4. What is a "no pay, no play" law?