Auto Insurance NYS Quiz 3 with Answers, Exams of Automobile Engineering

Download Auto Insurance NYS Quiz 3 with Answers and more Exams Automobile Engineering in PDF only on Docsity! Auto Insurance NYS Quiz 3 with Answers latest 2023 NY State Vehicle Financial Responsiblity Law - ✔1️. All vehicles except for emergency vehicles must carry liability insurance. Insurance satisfies the states requirement that auto owners have enough funds to pay for losses that they are legally liable for. 2. Proof of coverage must be carried. *Must include name and address of provider 3. Both the owner and the driver are legally liable for accidents. 4. The vehicle owners insurance is PRIMARY and will indemnify both the owner of the vehicle and the driver. 5. The drivers insurance is EXCESS and will indemnify only the driver Comprehensive Motor Vehicles Reprarations Act - ✔T️his law stipulates the criteria for suing in NYS when someone is injured in an automobile accident. Tort Limitation - ✔A️ tort is a civil, not criminal wrong that violates the rights of another. Persons injured in an auto mobile accident in NYS can only sue if they meet a Verbal Threshold Verbal Threshold - ✔A️ person can only sue if serious injury is sustained: 1. Death, dismemberment, or signficant disfiguration. 2. Loss of an organ or loss of use of an organ 3. Any fracture 4. Any loss of a bodily function for 90 days or more. Mandatory Photo Inspection - ✔A️pplies to vehicles with any physical damage coverage (Collision and/or Other Than Collison *Comprehensive) *This law gives the insurance company the right to inspect the vehicle *The insured has 5 days to complete the inspection *If not done in 5 days, then physical damage coverage will be suspended. *Suspended physical damage coverage will be reinstated upon inspection. Motor Vehicle Accident Indemnification Corporation - ✔T️his applies when both the injured person as well as the person causing the accident have no insurance. (ex. An uninsured passenger injured while an uninsured driver -or- an uninsured pedestrian injured when hit by an uninsured driver) *All auto insurers in NYS are assessed a fee for this program. *The program pays benefits to the injured party when caused by an uninsured motorist. *Limit is 25/50 *Only covers accidents occuring within NYS. Insurance Information and Enforcement System (IIES) - ✔T️his is a NYS Vehicle and Traffic Law designed to reduce the number of uninsured vehicles. *The insurer must notify DMV within 7 days of issuing a policy. *The insurer must notify DMV within 30 days of canceling a policy Cancellation Notice - ✔*️Insured can cancel at any time--may be required to cancel in writing. *Insurance company must provide written notification *15 days for nonpayment *20 days for any other reason Valid Reasons to Cancel a Policy - ✔1️. Policy in effect 1-60 days *Policy can be cancelled for a broad variety of reasons 2. Policy in effect 61 or more days *Non-payment of premium *Fraud and mis-representation or concealment *License suspension or revocation Non-renewals - ✔*️Paperwork must be mailed out at least 45 days prior to expiration, but not more than 60 days prior to expiration of policy *Policies can only be non-renewed after one year on the anniversary date Choice of Repair Shop - ✔A️uto insurers can recommend or suggest specified repair shops, but consumers are not required to use those shops. They can use any repair shop they choose. New York Rental Endorsement - ✔T️his is a mandatory endorsement in New York that when renting a car provides both Collision and Comprehensive coverage on a rental vehicle, regardless of the coverage carried on the policy. This allows the state to endorse state changes. Personal Auto Policy - ✔P️.A.P. PAP Eligible Vehicles - ✔P️rivate passenger vehicles (Includes autos, vans, and pick-ups) Private passenger vehicles used on the insured's farm is covered. YOU - ✔T️he person named on the declaration--also that persons spouse if they reside in the same household WE - Who is covered for P.I.P. Benefits? - ✔*️*The insured and family members if hit as pedestrians (1st Party) **The insured's minor children if injured on a school bus (1st Party) **Pedestrians struck by the insured's vehicle (3rd Party) P.I.P. Vehicle Eligibility - ✔A️ll vehicles are required to carry liability MUST carry P.I.P. Excluded Vehicles: *Vehicles on rails (trains and trolleys) *Agricultural and Contractors Mobile Equipment *Motorcycles *School Buses P.I.P. Limits - ✔*️50,000 per person limit *There are some time limits P.I.P. Medical Expense Coverages - ✔*️No time limit *Subtracted from the $50,000 per person limit P.I.P. Loss of Earnings Coverage - ✔*️3 year time limit *Subtracted from the $50,000 per person limit *Calculated at 80% of salary with a limit of $2000 monthly P.I.P. Misc Expenses/Other Expenses - ✔*️Covers such expenses as home health aides, taxi to doctor, etc *1 year time limit *Subtracted from the $50,000 per person limit *Limit is $25 per day P.I.P Funeral Expenses - ✔*️This benefit is NOT subtracted from the $50,000 per person *Limit is $2,000 per person P.I.P. Exclusions - ✔T️he following are only excluded under the P.I.P. coverage, but would be covered under other policy coverage's: *Any injury arising out of an felony or eluding police *Intentional self-inflicted injury *Racing *Injury when under the influence of drugs and alcohol Filing P.I.P. Claim - ✔I️njured party should submit a claim within reasonable time frame---30 days Additional Personal Injury Protection - ✔S️ame as P.I.P.---Provides additional limits Optional Basis Economic Loss--OBEL - ✔T️his coverage can only be used after all PIP benefits have been exhausted. 1. Optional Coverage 2. 1st and 3rd Party (3rd party only applies to a pedestrian struck by your car) OBEL Limit - ✔$️25,000 *The claimant decides how to spend the money from the following: A. Economic losses from medical bills, loss of earnings, or misc. expenses B. Loss of Earnings only C. Psychiatric, physical or occupational therapy and rehab D. Combination of B & C **Once the claimant decides on which option to spend the money on, that choice CANNOT be changed** Uninsured Motorist Coverage - ✔*️*Mandatory Coverage **1st Party Coverage Uninsured Motorist Coverages - ✔*️Medical Expenses *Pain and Suffering *Lost Wages *Funeral Expenses *Misc. Expenses Who is covered under Uninsured Motorist? - ✔*️The insured either in the vehicle or as a pedestrian *Passengers in the insured's vehicle When does Uninsured Motorist Apply? - ✔B️oth of the following MUST apply *Accident must NOT be at fault (3rd party must be negligent) *Accident must have occured within NYS Any ONE of the following MUST apply *The negligent 3rd party has no insurance *The negligent 3rd party insurance company denies the claim (Insolvent or claim excluded) *Hit and Run Accident Uninsured Motorist Pays what the negligent 3rd parties ____ insurance would of paid had that coverage been available. - ✔B️odily Injury **Limits selected for Uninsured Motorist cannot be higher than the insured's selected limits for Bodily Injury** Supplementary Uninsured/Underinsured Motorist (SUM) - ✔O️ptional Coverage 1st Party Coverage What SUM Covers - ✔*️Provides UNINSURED MOTORIST COVERAGE ***Same as Uninsured Motorits, but expands territory from NYS to the Standard Territorial Definition *Provides UNDERINSURED MOTORIST COVERAGE ***Covers the 1st party if the negligent 3rd party has insurance, but is underinsured. How to determine if Negligent 3rd Party is Underinsured - ✔L️imit of 1st Party's SUM (Minus) Limit of Negligent 3rd Party's B.I. NYS is a Non-stacked State - ✔*️Can't collect from more than one SUM coverage per accident *Can ONLY collect the actual difference between 1st party's SUM and neg. 3rd parties BI *SUM limits cannot exceed BI limits on the same policy *The UM portion of the SUM replaces UM (cannot collect under both UM's) Physical Damage Coverages - ✔O️ptional coverages that provide benefits to the insured's own vehicle **Optional Coverage **1st Party Coverage **Coverage's are Collision and/or Other Than Collision (Comprehensive) Collision - ✔T️his coverage provides benefits for your vehicle when loss is caused by: *Impact with any object, except an alive animal *Upset (rollover) Collision Deductibles - ✔M️inimum deductible in NY is $100 Other Than Collision--Comprehensive - ✔T️his is an open peril coverage that provides benefits to your vehicle. Covers losses due to: * Missles or falling Objects *Fire *Theft *Explosions *Earthquake *Windstorm *Hail *Flood