1. What is the difference between a pure no-fault automobile insurance law and a modified no-fault automobile insurance law.

2. Describe two types of programs which provide automobile insurance for high-risk drivers.

3. Explain these automobile insurance rating Factors And why insurance companies use them:

a. Territory

b. Age or driving experience

c. Credit-based insurance scores

d. Multi-car policies

4. Compare and contrast Uninsured Motorist Coverage and Underinsured Motorist Coverage.

5. What is the difference between Medical Payments Coverage and No-Fault Personal Injury Protection?

6. George has a standard, unendorsed Personal Auto Policy (PAP) with coverage for collision loss (with a $500.00 deductible) and other than collision loss (with a $250.00 deductible). What dollar amount, if any, will his PAP pay for each of the following losses? If a loss is not covered or is not fully covered, explain why. Treat each loss separately:

a. George collides with a deer. The damage will cost $900.00 to repair.

b. A thief breaks into George’s car and steals CDs valued at $600.00.

c. George earns extra money after class by transporting shoppers from the Millcreek Mall to their homes after the shoppers are done with their shopping trips. During one of these trips, he lost control of his vehicle, hit a telephone pole and caused $3,000.00 in damage to his vehicle.

d. While driving a friend’s older vehicle with permission, George leaves the roadway and strikes a tree. The car, valued at $1,500., is a total loss? The friend just carries minimum liability limits.

e. A runaway K-Mart shopping cart causes $500.00 in damages to his parked car.

f. George drives his car to Toronto where it is stolen.

g. George is struck from behind by an uninsured motorist. There is $2,000. in vehicle damage caused by the uninsured driver.

7. Louise is the named insured on a PAP with the following coverage:

Liability $500,000. Combined, single limit

Medical Payments $2,000. per person

Uninsured and Underinsured Motorists Coverages $100,000. Single limits

For each of the situations described below, indicate the amount, if any, that Louise’s PAP would pay for the loss. Assume that she lives in a state that does not have no-fault insurance. Consider each situation separately. Explain your answers:

a. Louise’s cousin, Larry, borrows her car. He gets drunk, drives off the road, strikes and kills a farmer’s cow. The cow was valued at $1,500.00.

b. Louise was involved in an accident with another motorist, who claims Louise did not have the right of way. The injured driver was awarded damages of $300,000. Legal defense costs incurred by her insurance company were $50,000. Describe what is paid under various parts of the PAP.

c. An uninsured driver hits Louise’s 4 year-old son when he is attempting to cross the street. The son was in a cross-walk. Medical bills are over $45,000. If there is coverage, take a reasonable guess at the amount paid and the coverage involved.

d. Louise rents a car while on vacation in Italy. She causes an accident. The other driver has medical bills of $10,000.00 and will not be able to work for a month, losing $2,000 in wages.