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Exam 17: Automobile Insurance

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Question 31

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What is the purpose of subrogation?

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If an insurer pays its insured, the insu...

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Question 32

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Liability, UM, and UIM coverage is required in "fault" states.

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Question 33

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Some have proposed prohibiting uninsured motorists from recovering damages they incur.

When an insurance carrier pays monies to its insured but has a right to go against the third party responsible for those losses, it is said to be to the rights of its insured.

All states today have some form of a no-fault system.

An uninsured motorist is always a motorist who has no policy of liability insurance whatsoever.

Most states do not require that a vehicle owner have liability insurance to drive the vehicle on public roadways.

Some states are prevented from experimenting with a no-fault system because their constitutions prevent interference with citizens' right to sue.

Under what conditions is an arbitration award not binding?

Coverage for reimbursement for repair or replacement of vehicles damaged in an accident is called coverage.

Why has no-fault insurance not been particularly successful in some states?

The insurance coverage for the driver of the vehicle is said to be the primary coverage for the vehicle if the driver is not the owner.

Secondary coverage applies to those situations where the insured owns more than one vehicle.

Comprehensive coverage provides reimbursement for losses to a vehicle, or its contents resulting from causes other than a collision.

Most medical payment, uninsured, and underinsured motorist coverages require arbitration in the event of a dispute.

An motorist provision in an insurance policy provides coverage for losses caused by an uninsured motorist.

If a third party responsible for injuries has insurance, but the limits of that insurance is insufficient to compensate the insured, the insured may look to his or her own motorist coverage if he or she has purchased it to compensate him or her for the difference.

Which coverage is considered primary when the insured is injured in a vehicle owned by someone else?

In a no-fault system, an injured insured does not retain the right to sue for intentional injuries or for injuries caused by intoxicated drivers.

An insured has the right of subrogation against third parties.