OLT-Breakroom: The Personal Auto Policy

Hello Every Body:

Coul any of you please help with following answers, I have been several time.

The Personal Auto Policy

Your answer :
The policy you sold to Joe lists him and his wife as the named insureds. Joe’s daughter Mary caused a serious accident in the family car. Will Joe’s auto policy pay for the damages Mary caused? = Response D
Now that Mary has had an at-fault accident, Joe says she can’t drive the family car ever again. He calls you and wants to know if there is coverage should she borrow her friend’s car and cause injuries? = Response A
Phoebe owns two cars, but only insures the newer one. The old checker hadn’t run for quite some time, but she finally got it repaired. She had an at-fault accident while driving the Checker and since her policy says the named insured is covered while operating any auto or trailer, she files the claim. How will her insurance company respond? = Response C
Joe called you again today and wants to know if he loans his pickup truck to his neighbor to make a Home Depot run and his neighbor causes injuries or damages to other people, will Joe’s liability policy pay? = Response E
Ross and Rachel had a really big fight. Rachel decided to get back at Ross by smashing the front end of his precious BMW and damaging a street light in the process. Will their auto policy pay for the damaged street light? = Response A

Sorry, please try again.

Re: The Personal Auto Policy

by Jan Bradburn- - Thursday, 16 October 2014, 10:37 AM

Hi Jose,

I sent you an email with this information but I also wanted to respond in the student forum.

The specific answers are not in the course but the information you need to answer these questions are in the course. For example I've attached the section that contains the information you need to answer the first question. I've also listed all of the answers below. Please let me know if you have other questions.

Jan

Who is insured for liability coverage?
Liability insurance covers the following people:
• The named insured and resident relatives (family members in your house)
• Anyone operating the insured vehicle with the insured’s permission
• Persons who may be responsible through vicarious liability. The policy will defend anyone legally responsible for your auto but only for matters the company would have defended you for anyway. For example, if you are on a company errand when you cause an accident, your auto policy will also defend your company if they are also sued. The same is true if you borrow a car and the same thing happens.

Answers:
1. Yes, she has the status of insured as a family member.
2. Yes, because family members have the status of insured for the ownership, maintenance or use of any auto or trailer.
3. Claim denied. There is exclusion for vehicles owned by you, other than your covered auto.
4. Yes, because coverage extends to any person using your covered auto
5. The policy will not protect Rachel because it was intentional, but will protect Ross for any liability brought against him because of severability.