Question

1. charlenes personal auto policy (pap) provides coverage not only in her home state but also when she is driving her car in all the following areas except: a. hawaii b. mexico c. puerto rico d. quebec 102. even though beverly has homeowners, personal auto, watercraft liability, and other liability policies, she might also want to buy a personal umbrella policy to protect against: a. catastrophic liability losses b. expensive legal fees c. losses that cannot be paid because of insurer insolvency d. unexpected cancellation or expiration of the other liability policies

Explanation:

1. Personal auto policies (PAP) typically cover the United States (including states like Hawaii), its territories (such as Puerto Rico), and Canada (including Quebec). Mexico is a foreign country outside the usual coverage areas of a standard PAP unless specific Mexico - coverage endorsements are added.
2. A personal umbrella policy is designed to provide additional liability coverage. It primarily protects against catastrophic liability losses that could exceed the limits of underlying policies (like homeowners, auto, etc.). While it may have some aspects related to legal defense (but not specifically for "expensive legal fees" as its main purpose), it is not for losses due to insurer insolvency (that's more about guaranty associations in some cases) or policy cancellations/expirations (umbrella policies usually require underlying policies to be in force).

Answer:

1. b. Mexico
2. a. catastrophic liability losses