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Questions and Answers
What is the primary purpose of policies working together seamlessly?
What is the primary purpose of policies working together seamlessly?
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What does a deductible require from the claimant?
What does a deductible require from the claimant?
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What are damages intended to accomplish in personal injury cases?
What are damages intended to accomplish in personal injury cases?
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What does denied liability indicate in an insurance context?
What does denied liability indicate in an insurance context?
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What are coverage limitations primarily concerned with?
What are coverage limitations primarily concerned with?
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In the context of insurance claims, what does denied coverage imply?
In the context of insurance claims, what does denied coverage imply?
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What might a dispute over denied liability lead to?
What might a dispute over denied liability lead to?
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What is the primary purpose of Preferred Body Shops in an insurance context?
What is the primary purpose of Preferred Body Shops in an insurance context?
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Under Prop 213, what type of damages are uninsured individuals restricted from receiving after a car accident?
Under Prop 213, what type of damages are uninsured individuals restricted from receiving after a car accident?
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What does a Property Damage Release document signify for the claimant?
What does a Property Damage Release document signify for the claimant?
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In a Red Light Dispute, what common issue arises between the parties involved in the accident?
In a Red Light Dispute, what common issue arises between the parties involved in the accident?
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What is the definition of Replacement Cost in the context of property damage?
What is the definition of Replacement Cost in the context of property damage?
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In what scenario is Loss of Use (LOU) typically not claimable?
In what scenario is Loss of Use (LOU) typically not claimable?
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What is the primary focus of a Multidisciplinary Accident Investigation Team (MAIT)?
What is the primary focus of a Multidisciplinary Accident Investigation Team (MAIT)?
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What is the primary function of an excess insurance policy?
What is the primary function of an excess insurance policy?
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What characterizes a low-speed collision?
What characterizes a low-speed collision?
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What is necessary for a policyholder to qualify for an umbrella policy?
What is necessary for a policyholder to qualify for an umbrella policy?
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What legal doctrine holds an entrustor liable for providing a dangerous item to an irresponsible entrustee?
What legal doctrine holds an entrustor liable for providing a dangerous item to an irresponsible entrustee?
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What does an excluded driver refer to in an auto insurance policy?
What does an excluded driver refer to in an auto insurance policy?
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What happens if an excluded driver operates the insured vehicle and is involved in an accident?
What happens if an excluded driver operates the insured vehicle and is involved in an accident?
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What does negligence refer to in the context of driving?
What does negligence refer to in the context of driving?
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What typically triggers the involvement of the Multidisciplinary Accident Investigation Team?
What typically triggers the involvement of the Multidisciplinary Accident Investigation Team?
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What does gap insurance provide coverage for?
What does gap insurance provide coverage for?
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What is a merge collision?
What is a merge collision?
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What is essential for a policyholder to avoid failure to comply with policy terms?
What is essential for a policyholder to avoid failure to comply with policy terms?
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What is misrepresentation or fraud in the context of insurance claims?
What is misrepresentation or fraud in the context of insurance claims?
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What characterizes a friendly body shop?
What characterizes a friendly body shop?
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Which situation best illustrates automobile entrustment liability?
Which situation best illustrates automobile entrustment liability?
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What common misconception might people have about gap insurance?
What common misconception might people have about gap insurance?
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Why is gap insurance particularly useful for new vehicles?
Why is gap insurance particularly useful for new vehicles?
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What is most likely to lead to a multi-vehicle pile-up?
What is most likely to lead to a multi-vehicle pile-up?
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What legal concept holds a car owner liable for lending their vehicle to an unfit driver who causes an accident?
What legal concept holds a car owner liable for lending their vehicle to an unfit driver who causes an accident?
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Which type of compensatory damages addresses personal and emotional impacts of an injury?
Which type of compensatory damages addresses personal and emotional impacts of an injury?
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What type of loss may be included in non-economic damages?
What type of loss may be included in non-economic damages?
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What does the concept of 'Notice' refer to in legal terms?
What does the concept of 'Notice' refer to in legal terms?
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How are OEM parts described in relation to original products?
How are OEM parts described in relation to original products?
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What is a characteristic of an insurance policy with no fixed payout limit for injury claims?
What is a characteristic of an insurance policy with no fixed payout limit for injury claims?
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Which of the following is NOT an example of non-economic damages?
Which of the following is NOT an example of non-economic damages?
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What distinguishes objective measurements in legal contexts?
What distinguishes objective measurements in legal contexts?
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What is a common characteristic of OEM parts?
What is a common characteristic of OEM parts?
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Which term is associated with the initial report made to an insurance company about a loss?
Which term is associated with the initial report made to an insurance company about a loss?
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Study Notes
Actual Cash Value (ACV)
- Value of damaged property at the time of loss, factoring in depreciation.
Aftermarket Parts
- Replacement parts made by third-party companies, not the original manufacturer.
- May offer cost savings, customization, but quality can vary.
Appraisal
- Evaluation of property value, often for insurance or repair costs.
Arbitration
- Alternative to trial where a neutral third party decides the outcome.
Auto Policy
- Contract between a policyholder and insurance company for vehicle-related protection.
- Covers bodily injury, property damage, vehicle repairs, and legal liability.
Backing-up Collision
- Collision involving a vehicle reversing into another vehicle, pedestrian, or object.
Blind Spot Collision
- Collision occurring when a vehicle collides with another vehicle in its blind spot.
Burning Policy
- Liability insurance policy whose coverage limit decreases with defense or claim payouts.
Catastrophic Injury
- Severe injuries, like brain or spinal damage, leading to permanent disability.
Causation Disputes
- Disagreements about a direct link between an accident and claimed injuries.
Chain Reaction Collision
- Multi-vehicle collision initiated by an initial impact.
Claim
- A demand for compensation due to injury or loss.
Claimant
- Person filing a claim for damages.
Collision Coverage
- Insurance covering vehicle repairs in the case of a collision.
Combined Single Limits (CSL)
- One overall limit for all types of claims resulting from a single incident.
- Applies to bodily injury and property damage liabilities.
Commercial Policy
- Insurance contract for businesses protecting assets from losses and liabilities.
Comparative Negligence
- Damages adjusted based on each party's fault in an accident.
Comprehensive Coverage
- Insurance for non-collision damages like theft, vandalism, or natural disasters.
Concurrent Policy
- Multiple insurance policies covering the same property, person, or risk.
Coverage Limitations
- Claim limits being exceeded or specific damage types not covered.
Damages (Economic)
- Monetary compensation for financial losses like medical costs and lost wages.
Damages (Non-Economic)
- Compensation for intangible losses like pain and suffering, emotional distress.
Deductible
- Amount a claimant must pay out-of-pocket before insurance covers damage.
Defendant
- Party being sued or accused.
Denied Coverage/Coverage Denial
- Insurance company's refusal to pay a claim.
- Claim does not meet policy terms or exclusions.
Denied Liability/Dispute Liability
- Refusal to accept responsibility for an accident, injury, or damage.
- May lead to disputes and potential litigation.
Depreciation
- Reduction in value of property due to age, wear, or damage.
Diminished Value
- Decrease in a vehicle's value after repair from damage.
Disputed Liability
- Disagreement over who is responsible for an accident, injury, or damage.
Economic Damages
- Compensation for quantifiable financial losses directly resulted from an injury.
Establishing Liability
- Proving one party is responsible for damages or harm in a legal case.
Estimate (Repair Estimate)
- Projected repair costs from a body shop or adjuster.
Excess Policy
- Secondary insurance covering losses above the primary policy's limit.
Exchange of Information
- Direct exchange of details after a collision, avoiding a formal police report.
Excluded Driver
- Person not covered under the automobile insurance policy.
Failure to Comply with Policy Terms
- Non-compliance with a policy's requirements (e.g., reporting within a timeframe).
Friendly Body Shop
- Approved repair shop for auto repairs.
Gap Insurance
- Insurance covering the difference between a vehicle's loan amount and its value.
Government Claim
- Compensation requested from a government entity for damages, injuries, or losses.
Government Entity (Federal, State, Local)
- Organization, agency, or department of the government.
Government Immunity
- Protection from lawsuits for government acts within their official duties.
Head-On Collision
- Front-to-front collision of two vehicles.
- Highly dangerous due to combined speed.
Hit-and-Run
- Accident where one party leaves the scene without reporting or assistance.
Intersection Collision
- Collision at an intersection due to failing to yield or running a light.
Lapsed Policy
- Insurance policy no longer active due to non-payment or expiration.
Liability
- Legal responsibility for actions causing harm.
Liability Insurance
- Coverage for claims resulting in injuries or damages.
Loss of Use (LOU)
- Coverage for lack of vehicle use due to damage, typically comparable to rental costs.
Low-Speed Collision
- Collision occurring at low speed, typically in parking lots or neighborhoods.
MAIT Report (Multidisciplinary Accident Investigation Team)
- Thorough investigation of significant traffic collisions.
- Involves experts like in accident reconstruction.
Merge Collision
- Collision during a vehicle merge into traffic.
Misrepresentation/Fraud
- Providing false information in an insurance application or claim.
Multi-Vehicle Pile-up
- Multiple vehicles involved in a chain reaction crash, often in bad weather.
Negligence
- Failure to exercise reasonable care to prevent injury or loss.
Negligence Entrustment
- Holding a party liable for allowing another to operate a dangerous item irresponsibly.
Non-Economic Damages
- Compensation for non-quantifiable losses like pain, suffering, or loss of enjoyment of life.
Notice
- Initial report to an insurance company about a loss.
Notice of Loss
- Initial notification about a loss to an insurance company.
Objective
- Factual perspective, free from personal feelings or biases.
OEM (Original Equipment Manufacturer)
- Original manufacturer of a product.
- OEM parts are original, high-quality replacements.
Open Policy
- Insurance policy without a pre-set limit for payout.
Overturn Liability
- Reversal of a determining liability ruling.
Pain and Suffering
- Physical and emotional distress caused by an injury.
Parking Lot Accident
- Accident involving a vehicle in a parking lot.
Party
- Individual, organization, or entity in a legal case, contract, or claim.
Personal Injury
- Harm to a person's body, mind, or emotions.
Plaintiff
- Person who initiates a lawsuit.
Policy Coverage Dispute
- Insurer/claimant disagreement about policy coverages.
Policy Exclusions
- Policy clauses excluding specific losses or damage types.
Policy Language
- Specific terms and wording used within the policy.
Policy Limits
- The maximum amount an insurer will pay for a covered loss.
Preferred Body Shop
- Vetted repair shop partnered with insurance companies.
Prop 213
- California law limiting non-economic damages in accidents involving uninsured drivers.
Property Damage
- Harm or destruction of physical property.
Property Damage Release (PDR)
- Agreement settling a property damage claim.
Rear-end Collision
- Collision where one vehicle hits the back of another.
Red Light Dispute
- Disagreement over whether a red light was obeyed before the collision.
Rental Reimbursement
- Payment for a rental car while a damaged car is repaired.
Salvage Value
- Value of a considered totaled vehicle, often sold for parts.
Settlement (Property Damage)
- Agreed amount paid to cover property damage.
Sideswipe
- Collision between two vehicles traveling parallel, hitting each other on the side.
Soft Tissue Injury
- Damage to muscles, ligaments, tendons.
Statement of Facts
- Summary of relevant facts in a particular case.
Statute of Limitations
- Time limit for filing a lawsuit.
Structural Damage
- Damage to a building's foundation or essential parts.
Subjective
- Perspective, opinion influenced by personal feelings and biases.
Subrogation
- Insurance company's recovery of funds from a liable party after a claim.
T-bone Collision
- Broadside collision, similar to a "T" shape.
Tender of Claim (To Another Party)
- Formal request for another party (e.g., another insurer) to assume liability.
Tender Policy Limit
- Issuing a payment up to the policy limit to settle a claim.
Third-Party Claim (3P)
- Claim against a person or entity other than the primary parties.
Total Loss
- Vehicle repair cost exceeding its value.
Towing
- Vehicle transportation service.
Traumatic Brain Injury (TBI)
- Severe brain injury resulting from impact.
U-Turn Collision
- Collision involving a vehicle making a U-turn.
Undercarriage Damage
- Damage to the underside of a vehicle.
Underinsured Motorist (UIM)
- Coverage when the at-fault driver's limits are lower than the damages sustained.
Uninsured Motorist (UM)
- Coverage if the at-fault party has no liability insurance.
Vehicle Inspection
- Evaluation of a vehicle's condition.
Vicarious Liability
- Holding one party responsible for the actions of another.
- Typically, employers are responsible for employee actions that cause harm.
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Description
Test your knowledge of key insurance concepts, including actual cash value, aftermarket parts, and auto policy definitions. This quiz covers essential terms that every insurance professional should know, enhancing your understanding of the field.
