PPCI - Pennsylvania Property and Casualty Insurance Exam

Question 1: A Pennsylvania insured who already carries liability, comprehensive and collision on two cars buys a third vehicle from a dealer in Lancaster on a Saturday afternoon. How long does the personal auto policy give him to report the purchase and keep the same coverage?

Four days

Thirty days

Until the next renewal

Fourteen days

Question 2: A personal auto policy is issued to a Pittsburgh couple. Their nineteen-year-old daughter lives at home, and a foster child placed with them also resides in the household. Which term in the policy definitions describes both young people?

Named insured

Additional insured

Family member

Occupant

Question 3: A Pennsylvania insured lends his covered auto to a coworker for an afternoon errand, and the coworker causes an accident that injures another driver. The coworker has no auto policy of her own. How does the insured's liability coverage respond?

It covers her as a permissive user

It applies only to the named insured

It applies only to household residents

It excludes borrowed-vehicle accidents entirely

Question 4: A Pennsylvania insured is sued after an auto accident. His insurer posts a bond to release his vehicle from an attachment, pays interest accruing after the judgment, and reimburses him for a day of lost wages spent testifying. Which part of the policy funds these payments?

Part B medical payments

Part D physical damage

Uninsured motorists coverage

Supplementary payments

Question 5: A Pennsylvania insured begins carrying paying passengers in his personal vehicle through a ride-hailing arrangement on weekends. He has made no change to his personal auto policy. How does the standard liability coverage treat an accident during one of those trips?

It is excluded as livery use

It applies with a higher deductible

It applies only to the passengers

It applies after a waiting period

Question 6: A Pennsylvania insured carrying the state minimum liability limits drives to a neighboring state that requires higher minimum limits of its own. He causes an accident there. How does the personal auto policy respond to the difference in required limits?

It pays only the Pennsylvania limits

It denies coverage outside Pennsylvania

It rises to the other state's minimum

The insured must pay the difference

Question 7: A Pennsylvania insured borrows a friend's car with permission and causes an accident. The friend carries her own auto liability policy on that vehicle, and the borrower also has a personal auto policy. Which statement describes how the two policies respond?

The borrower's policy pays first

The two policies share the loss equally

Only the borrower's policy responds

The owner's policy pays first

Question 8: A Pennsylvania insured is a passenger in a friend's car when the friend rear-ends another vehicle. The insured needs stitches and physical therapy. Under her own personal auto policy, which coverage pays those expenses regardless of who caused the accident?

Part A liability coverage

Part C uninsured motorists coverage

Part B medical payments coverage

Part D physical damage coverage

Question 9: A Pennsylvania driver is sideswiped on the Schuylkill Expressway by a vehicle that keeps going and is never identified. Under Part C, which requirement must generally be satisfied before a hit-and-run driver qualifies as an uninsured motor vehicle?

There must be contact with the vehicle

The other driver must be criminally charged

The insured must obtain a police report

A witness must identify the license plate

Question 10: A Pennsylvania insured is seriously injured by a driver who carries liability limits far below the value of the injuries. The at-fault driver's insurer pays its full limit. Which coverage on the insured's own policy is designed to respond to the shortfall?

Uninsured motorists coverage

Medical payments coverage

Collision coverage

Underinsured motorists coverage

Question 11: A Pennsylvania insured's parked car is damaged twice in one month: once when a deer runs into it on a rural road, and once when the insured backs into a utility pole. Under Part D, how are these two losses classified?

Both are collision losses

Deer is comprehensive, pole is collision

Both are comprehensive losses

Deer is collision, pole is comprehensive

Question 12: A Pennsylvania insured's car will not start in a parking garage in Harrisburg, and she pays for a tow to a repair shop plus an hour of roadside labor. Which personal auto endorsement is designed to reimburse those costs?

Towing and labor costs

Extended non-owned coverage

Miscellaneous type vehicle

Joint ownership coverage

Question 13: A Pennsylvania executive does not own a car and regularly drives vehicles furnished by her employer and by rental companies. She wants her personal auto policy to broaden the liability protection that follows her into those vehicles. Which endorsement addresses that need?

Towing and labor costs

Joint ownership coverage

Miscellaneous type vehicle

Extended non-owned coverage

Question 14: A Pennsylvania personal auto policy is issued with the Amendment of Policy Provisions Pennsylvania endorsement attached to it. A candidate preparing for the licensing exam asks what the endorsement is for. Which statement gives the best general description of what this form accomplishes?

It adds first-party benefits free

It replaces the tort option election

It conforms the policy to Pennsylvania law

It waives the physical damage deductible

Question 15: A Pennsylvania applicant asks the least amount of automobile liability insurance she may legally carry to satisfy the Commonwealth's financial responsibility requirement. Which combination of bodily injury and property damage limits does the Motor Vehicle Financial Responsibility Law require?

Fifteen, thirty and five thousand dollars

Ten, twenty and five thousand dollars

Twenty-five, fifty and ten thousand dollars

Fifty, one hundred and twenty-five thousand

Question 16: A Pennsylvania producer explains that one first-party benefit must be included in every private passenger automobile policy sold in the Commonwealth, while the others are optional purchases. Which benefit does the Motor Vehicle Financial Responsibility Law make mandatory, and at what level?

Income loss, twenty-five hundred monthly

Accidental death, twenty-five thousand dollars

Funeral benefits, twenty-five hundred dollars

Medical benefits of five thousand dollars

Question 17: A Pennsylvania insured who purchased optional income loss benefits is unable to work after an automobile accident. Which statement correctly describes how the Motor Vehicle Financial Responsibility Law structures the income loss benefit for a claimant in this position?

Full wages from the first day

Half of wages after thirty days

Eighty percent of lost gross income

Full wages after five working days

Question 18: A Pennsylvania producer reviews the optional first-party benefits that an insurer must make available on a private passenger automobile policy. Which pair correctly states the statutory funeral benefit and the minimum accidental death benefit that must be offered?

One thousand and ten thousand dollars

Twenty-five hundred and twenty-five thousand

Five thousand and fifty thousand dollars

Twenty-five hundred and fifty thousand

Question 19: A Pennsylvania buyer wants a single first-party benefit package rather than choosing separate limits for medical, income loss, accidental death and funeral coverage. What aggregate amount must insurers make available to him as a combination benefit under the statute?

One hundred seventy-seven thousand five hundred

One hundred thousand dollars

Fifty thousand dollars

No combination benefit is available

Question 20: A Pennsylvania insured chooses the cheaper of the two tort options offered at application. She is later injured by a negligent driver and learns she cannot recover for pain and suffering unless her injury meets a statutory test. Which election did she make?

Full tort

Limited tort

Assigned risk

First-party benefits only

PPCI Pennsylvania Property and Casualty Insurance Exam - Set 3 - Part 1