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Uninsured Motorists

Practice questions on uninsured motorists for the casualty exam, each with an answer and explanation.

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Study questions and answers

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1. Uninsured motorists coverage under the personal auto policy pays compensatory damages that an insured is legally entitled to recover from the owner or operator of an uninsured motor vehicle because of:

  1. Bodily injury sustained by an insured caused by an accident
  2. Damage to the insured's own auto caused by any accident
  3. Theft of the insured's covered auto
  4. Medical bills of any person regardless of fault
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A. Bodily injury sustained by an insured caused by an accident
Part C of the standard PAP covers bodily injury to an insured caused by an uninsured motorist who is legally liable. Property damage under UM is available in some states by endorsement.

2. Which of the following is considered an uninsured motor vehicle under the personal auto policy?

  1. A vehicle owned by the named insured
  2. A vehicle owned by a governmental unit
  3. A hit-and-run vehicle whose owner or operator cannot be identified and that hits the insured or the vehicle the insured is occupying
  4. A farm-type tractor being used off public roads
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C. A hit-and-run vehicle whose owner or operator cannot be identified and that hits the insured or the vehicle the insured is occupying
An uninsured motor vehicle includes one with no liability coverage, one with less than the state's required limits, a hit-and-run vehicle that hits the insured or the insured's vehicle, and one whose insurer denies coverage or becomes insolvent.

3. An insured is hurt by an at-fault driver who carries liability insurance that meets the state minimum, but the insured's damages exceed that driver's limits. Which coverage is designed to pay the difference up to the insured's own limit?

  1. Uninsured motorists coverage for bodily injury
  2. Medical payments coverage
  3. Collision coverage
  4. Underinsured motorists coverage
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D. Underinsured motorists coverage
Underinsured motorists coverage applies when the at-fault driver has insurance but not enough to cover the insured's damages, up to the insured's UIM limit.

4. If the insured and the insurer disagree on whether the insured is legally entitled to recover damages under uninsured motorists coverage, or on the amount, the dispute may be settled by:

  1. The insured's agent
  2. Arbitration, if both parties agree
  3. The other driver's insurer
  4. The state motor vehicle department
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B. Arbitration, if both parties agree
The UM coverage part provides for arbitration when both the insured and the insurer agree to it, unless state law says otherwise.

5. After a hit-and-run accident, which step must the insured take to have a claim considered under uninsured motorists coverage?

  1. Find the hit-and-run driver before filing a claim
  2. Wait 30 days before reporting
  3. Promptly notify the police
  4. File suit against the insurer
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C. Promptly notify the police
Part E requires a person seeking uninsured motorists coverage to notify the police promptly if a hit-and-run driver is involved.

6. Which of the following is excluded from uninsured motorists coverage under the personal auto policy?

  1. Bodily injury to the named insured caused by an uninsured driver
  2. Bodily injury to a family member caused by a hit-and-run driver
  3. Bodily injury to a passenger in the covered auto caused by an uninsured driver
  4. Punitive or exemplary damages
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D. Punitive or exemplary damages
Part C does not pay punitive or exemplary damages. It pays compensatory damages for bodily injury the insured is legally entitled to recover.

7. In states that allow an applicant to decline uninsured motorists coverage, the rejection is usually required to be:

  1. In writing, and kept in the insurer's file
  2. Verbal, with a note made by the agent
  3. Filed with the state insurance department in advance
  4. Paid for with an added premium on the policy
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A. In writing, and kept in the insurer's file
Where rejection is allowed, states commonly require it in writing, and a few prescribe the wording. An agent's note of a verbal refusal is the trap, and some states do not allow rejection at all.

8. Stacking of uninsured motorists coverage means:

  1. Adding UM limits to the at-fault driver's liability limits
  2. Combining the UM limits of several vehicles or policies
  3. Charging a separate deductible for each covered vehicle
  4. Covering several insureds on one vehicle with a single limit
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B. Combining the UM limits of several vehicles or policies
Where state law permits, stacking lets an insured add together the UM limits on several vehicles or policies. Many states prohibit it, and the standard policy wording works against it.

9. A neighbor riding in the named insured's covered auto is injured by an uninsured driver. Under the personal auto policy UM coverage, the neighbor is:

  1. Not an insured, since only family members qualify
  2. An insured, since he or she occupies the covered auto
  3. An insured only if living in the named insured's household
  4. An insured only if the neighbor has no auto insurance
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B. An insured, since he or she occupies the covered auto
Insureds under Part C are you, family members, any other person occupying your covered auto, and anyone entitled to recover damages because of injury to those people. Household membership is not required for an occupant.

10. A family member is hit by an uninsured driver while riding his own motorcycle, which is not insured for UM under the family's auto policy. Under the ISO personal auto policy, UM coverage:

  1. Applies in full, since the injured person is a family member
  2. Applies for medical expenses only, up to a stated cap
  3. Applies, but subject to a much higher deductible
  4. Does not apply, due to the owned-but-not-insured vehicle exclusion
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D. Does not apply, due to the owned-but-not-insured vehicle exclusion
The standard policy excludes UM for an insured occupying or struck while using a vehicle owned by the named insured or a family member that is not insured for UM under that policy. State amendments can change this.

11. Three insureds are injured in one accident caused by an uninsured driver. Under the ISO personal auto policy wording, the UM limit for the accident is:

  1. The limit shown, regardless of insureds or vehicles
  2. A separate full limit for each injured insured
  3. The per-person limit times the number of covered autos
  4. The state minimum limit, regardless of the declarations
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A. The limit shown, regardless of insureds or vehicles
The policy limit is the most the insurer pays for one accident regardless of the number of insureds, claims, or vehicles shown in the declarations. Stacking applies only where state law overrides this wording.
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