Question

all quiz questions must be answered before you will be allowed to continue.

1. kendricks car is insured with a personal auto policy (pap). how can he have the policy also cover his new motorcycle?

○ a. add the miscellaneous type vehicle endorsement to the pap
○ b. list the motorcycle in the paps declarations
○ c. replace the pap with a fleet policy to cover more than one vehicle
○ d. the pap provides automatic coverage on a newly acquired vehicle

1. maryanns car is being towed from its parking space on the street in front of her home. the other-than - collision coverage of her personal auto policy will cover her loss if the:

○ a. car was being repossessed by the lender that financed its purchase
○ b. car was being towed because it was parked illegally
○ c. police had a warrant to seize the car as evidence in a criminal investigation
○ d. tow truck operator was unlawfully removing the car

Explanation:

1. In insurance policies, a miscellaneous type vehicle endorsement is used to add non - standard vehicles (like a motorcycle in this case) to a personal auto policy (PAP). Listing the motorcycle in the declarations (b) is not sufficient as it doesn't provide the proper coverage structure. Replacing the PAP with a fleet policy (c) is over - kill for just adding a motorcycle. And the PAP does not provide automatic coverage for a newly acquired motorcycle (d).
2. For other - than - collision coverage in a personal auto policy, if the tow truck operator was unlawfully removing the car (d), it is a situation that can be covered. If the car was being repossessed (a) or towed for illegal parking (b) or seized as evidence (c) (in a legal sense as per a warrant), these are not covered under other - than - collision in the typical sense.

Answer:

1. A. add the miscellaneous type vehicle endorsement to the PAP
2. D. tow truck operator was unlawfully removing the car