Personal Auto PolicyQuestion 392 of 474
An insured drives into another state whose law requires higher liability limits than the policy carries. The out-of-state coverage provision:
a.Keeps the lower limit, since the declarations control the limit
b.Suspends liability coverage until the insured returns home
c.Requires the insured to buy a separate policy for that trip
d.Raises the policy to the higher limit that the other law requires
Explanation
The out-of-state provision interprets the policy to provide at least the minimum amounts and types of coverage the other jurisdiction demands of a nonresident, so the insured is not left short while travelling. It is an automatic adjustment written into Part A, which is why no separate trip policy is needed. It does not pay twice for the same damages, and coverage is not suspended at the border.
This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 474 questions free — no signup required.
Own the complete Personal Lines Insurance Producer guide — PDF + EPUB, $19.99 →
Related questions on this topic
- The insured buys a motorcycle and rides it without adding it to the personal auto policy. If the insured injures someone while riding, Part A:
- An employer supplies a car for the insured's regular use and it is not listed on the insured's personal auto policy. When the insured causes a $40,000 loss in it, Part A:
- A teenager takes a neighbor's car without asking and causes an accident. Under the neighbor's personal auto policy, Part A liability:
- A policy carries $5,000 of medical payments per person. In one accident the insured driver incurs $6,500 of bills and two passengers incur $3,000 and $1,200. Part B pays:
- Part B medical payments coverage of the personal auto policy pays for:
- How does Part B medical payments coverage differ from Part A liability coverage?
Last reviewed: · editorial process
PrepPass team · Verified against California Personal Lines Insurance License Exam · How we review