Personal Auto PolicyQuestion 19 of 474

Which of the following is a duty owed by the insured to the insurer AFTER an accident or loss, as required by Part E of the Personal Auto Policy?

a.Pay the repair shop in full first and then send the insurer the paid invoice within 10 days, because Part E treats a paid repair bill as the required notice of loss
b.Promptly notify the insurer of the loss, cooperate with the investigation, and submit to examination under oath when required
c.Reject any settlement offer the insurer makes until an independent appraiser has valued the loss, because Part E bars the insured from accepting a first offer
d.File a lawsuit against the at-fault driver within 30 days and serve the insurer with a file-stamped copy of the complaint before any claim payment is made

Explanation

Part E – Duties After an Accident or Loss – requires the insured to (1) promptly notify the insurer of how, when, and where the accident or loss happened, (2) cooperate in the investigation, settlement, and defense of any claim, (3) submit to examination under oath when required, and (4) authorize the insurer to obtain medical and other records. Failure to perform these duties can void or limit coverage.

Law Reference: ISO PAP Part E

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