Personal Auto PolicyCâu 392 / 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
Giải thích
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.
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Câu hỏi liên quan cùng chủ đề
- 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?
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