PPCI - Pennsylvania Property and Casualty Insurance Exam

Question 21: A Pennsylvania insurer sends a new applicant the statutory tort option notice, receives no response, sends the required follow-up, and still has no election ten days before the policy renews. Which tort option does the Motor Vehicle Financial Responsibility Law assign to that insured?

Limited tort

Whichever option the insurer selects

No coverage may be issued

Full tort

Question 22: A Pennsylvania limited tort insured is hurt in a crash and wants to sue for pain and suffering. Her attorney explains that she must first show a serious injury. Which set of outcomes satisfies the statutory definition of serious injury?

Any injury requiring hospital treatment

Any injury causing a missed week

Death, serious impairment or permanent disfigurement

Any injury with high medical bills

Question 23: A Pennsylvania limited tort insured is struck by a driver who is later convicted of driving under the influence in connection with the accident. How does that conviction affect the injured insured's ability to seek pain and suffering damages?

It has no effect on her election

She must first exhaust first-party benefits

Her election converts to full tort permanently

She may sue for noneconomic damages

Question 24: A Pennsylvania limited tort insured is injured in Erie by a driver whose vehicle is registered in Ohio. The Ohio driver was sober and carried liability insurance. Which statement correctly describes the Pennsylvania insured's right to seek noneconomic damages?

She may sue under a statutory exception

She is barred absent serious injury

She is barred, the driver was insured

She may sue only for economic losses

Question 25: A Pennsylvania applicant is buying automobile liability coverage and asks whether she is required to purchase uninsured and underinsured motorists coverage as well. Which statement correctly describes what Pennsylvania law requires of the insurer and of the buyer?

Both the insurer and buyer must include

The insurer must offer, she may reject

The coverages are unavailable at minimum limits

The insurer may decline to offer

Question 26: A Pennsylvania insured wants to reject uninsured motorists coverage in order to lower her premium, and her producer prepares the paperwork for her signature. Which requirement must the rejection satisfy to be effective under the Motor Vehicle Financial Responsibility Law?

It may be given orally

It must be witnessed by the producer

Signed and dated by the named insured

It may appear anywhere in the application

Question 27: A Pennsylvania insured carries bodily injury liability limits of one hundred thousand dollars per person and wants uninsured motorists limits set lower to reduce cost. What does the Motor Vehicle Financial Responsibility Law require before an insurer may write those reduced limits?

Approval from the Insurance Commissioner

A physical examination of the insured

A minimum three-year claim-free record

A written request from the named insured

Question 28: A Pennsylvania family insures three vehicles on a single policy and purchases uninsured motorists coverage on all of them. No waiver forms were signed at any point. How do the uninsured motorists limits apply across those three vehicles under Pennsylvania law?

They apply once, to one vehicle only

They apply separately to each insured vehicle

They are divided equally among the vehicles

They apply to the vehicle driven

Question 29: A Pennsylvania insurer is preparing the physical damage options it will present to private passenger automobile applicants at the point of sale. Which collision deductible does the Motor Vehicle Financial Responsibility Law specifically require the insurer to make available to buyers?

Five hundred dollars

One hundred dollars

One thousand dollars

Two thousand five hundred dollars

Question 30: A Pennsylvania insured submits a first-party medical benefits claim after a minor accident and worries that her premium will rise at renewal. Which statement correctly describes what the Motor Vehicle Financial Responsibility Law permits the insurer to do?

It may surcharge after two such claims

It may surcharge but not assign points

It may not surcharge for that claim

It may cancel the policy midterm

Question 31: A Pennsylvania motorist is stopped by police and cannot produce proof of financial responsibility because his coverage lapsed several months earlier. Which combination of consequences does the Motor Vehicle Financial Responsibility Law impose for operating without required financial responsibility?

A warning letter and mandatory training

Three month suspensions plus three hundred dollars

A one year revocation, no fine

Six month suspensions plus one thousand dollars

Question 32: A Pennsylvania private passenger automobile policy has been in force for eight months when the insurer decides to cancel it midterm. Which of the following is a permissible ground for that cancellation after the underwriting window under Pennsylvania's automobile termination statute?

The named insured's license was suspended

The insured filed two comprehensive claims

The insured moved to another area

The insured turned seventy-five years old

Question 33: A Pennsylvania insurer mails a nonrenewal notice on a private passenger automobile policy for a reason other than nonpayment of premium. The insured wants the Commissioner to review it. Which pair of periods governs the notice and the request, notice first?

Thirty days and ten days

Fifteen days and twenty days

Sixty days and ten days

Sixty days and thirty days

Question 34: A Pennsylvania trucking company's business auto policy shows a covered auto designation that provides the broadest possible protection, reaching vehicles the company owns, hires, borrows or does not own at all. Which numbered symbol on the declarations produces that result?

Symbol seven

Symbol eight

Symbol one

Symbol nine

Question 35: A Pennsylvania contractor wants business auto coverage that applies only to the four trucks listed on the declarations, with no protection extending to any other vehicle. Which covered auto symbol on the business auto coverage form produces that narrow result?

Symbol one

Symbol seven

Symbol two

Symbol nineteen

Question 36: A Pennsylvania distributor's employee drives a company truck to a delivery and negligently injures a pedestrian. The employee is not shown by name anywhere on the business auto policy. How does the coverage respond to a claim against that employee?

The employee is an insured while driving

Only the named insured is protected

The employee must be endorsed first

Coverage applies only after suit

Question 37: A Pennsylvania repair shop is sued after one of its employees damages a customer's sedan that had been left at the shop for service. The shop carries a standard business auto liability form. Why does that liability coverage not respond?

The employee was not a named insured

The vehicle was not covered

The damage happened off the premises

Property in the insured's care is excluded

Question 38: A Pennsylvania delivery driver is arrested for a traffic violation arising out of a covered accident, and the company's business auto insurer arranges a bail bond. Which statement correctly describes how the supplementary payments provision treats that cost?

It pays only after a conviction

It refuses bond costs as fines

It pays bond costs, within limits

It pays bonds from the limit

Question 39: A Pennsylvania fleet owner wants physical damage protection against fire, theft, windstorm, hail and vandalism, but not the full breadth of comprehensive coverage, in order to reduce premium. Which physical damage option on the business auto form fits that request?

Collision coverage

Trailer interchange coverage

Towing and labor coverage

Specified causes of loss coverage

Question 40: A Pennsylvania fleet manager reviews his business auto physical damage coverage and asks which of several everyday costs the insurer will not pay. Which of the following is excluded from physical damage coverage under the business auto coverage form?

Wear and tear on tires and brakes

Theft of a covered truck

Hail damage to a covered trailer

Fire damage to a covered van

PPCI Pennsylvania Property and Casualty Insurance Exam - Set 3 - Part 2