Question

The Personal Auto Policy (PAP) contains several coverages that meet the insurance needs of typical insureds. Chuck has a PAP; for each of the following coverages, give a specific descriptive example of a loss (accident) involving Chuck that would result in a claim covered by Chuck’s PAP:

1. Part A: Liability Coverage:  

2. Part B: Medical Payments Coverage:     

3. Part C: Uninsured Motorists Coverage:                        

4. Part D: Coverage for Damage to Your Auto:                      

Answer 1

a). Part A: Liability Coverage:

Chuck is involved in an accident and injured 2 people and caused damage to their car. Let the first person is injured with severe damage worth $150000 and the second person had a damage worth $50000 and there was a damage of $20000 to their car. If Chuck had a single limit policy of say, $300000, all the expenses would be covered. If he had a split policy of 100/300/50, $50000 of the severly injured person is not covered and all the remaining expenses will be covered.

b). Part B: Medical Payments Coverage:

Chuck is traveling in his own car and is involved in an accident by a motor vehicle. Chuck is in no fault regarding the accident. He will be covered for all his expenses related to his injuries and incase of death, his funeral expenses will also be covered.

c). Part C: Uninsured Motorists Coverage:

Chuck involved in an accident and suffured damages from a driver who has not taken an insurance. The uninsured Motorists coverage will cover for Chuck's losses in this case.

d). Part D: Coverage for damage to your Auto:

Chuck suffered damage to his vehicle due to an earthquake. If he had taken a comprehensive coverage which covers both Collison coverage and Other than collision coverage, he will covered for the damages. Othe than collision coverage covers the insured from damages due to earthquake, explosion, flood, vandalism and theft.