Ken purchased a PAP with liability limits of 100/300/50, medical payments coverage, and collision coverage. Ken fell asleep while driving late at night. He crossed the center line and hit a car approaching from the other direction. The following losses occurred:The driver of the other car suffered $30,000 in bodily injuries.Ken’s car sustained $5,000 in damages.Ken incurred $5,000 in medical expenses.The car that Ken hit was a total loss.Which of Ken’s Personal Auto Policy (PAP) coverages will cover the other driver’s medical expenses?

A car damaged in an auto accident may have reduced market or resale value after it is repaired. Some insureds have sought to recover this reduction in market or resale value. This loss in value is called

Which of the following is considered to be a collision loss under Part D (coverage for damage to your auto) of the PAP?

A whole life insurance policy in which premiums are reduced for an initial period (e.g. 3 years) and are higher thereafter is an example of a

Duties of an insured after a collision loss covered under the PAP include which of the following?I.Take reasonable steps to protect the vehicle from further damage.II.Admit fault if the insured believes he or she caused the collision.

Which of the following statements about variable life insurance is true?

Dan picked up his friend Rodney to drive to their softball game. Both Dan and Rodney have a Personal Auto Policy (PAP) with $5,000 of medical payments coverage. Dan hit a parked car, and Rodney was injured, incurring $9,000 of medical expenses. How will this claim be settled under the other insurance provision of the PAP?

Larry has $25,000 of bodily injury liability coverage under his PAP. This limit is the minimum amount required by his state to be considered financially responsible. While on a vacation, Larry visited a neighboring state which has a minimum financial responsibility limit of $50,000 for bodily injury. Which of the following statements describes the situation for Larry while he was in the neighboring state?

Dave purchased a life insurance policy. The policy is nonparticipating and the cash values are based on the insurer’s present mortality, investment, and expense experience. After 2 years, the insurer will recalculate the premium based on the mortality, investment, and expense experience at that time. Dave purchased

One long-term care insurance benefit trigger considers whether the insured needs supervision to protect against threats to health or safety due to memory loss or disorientation. This benefit trigger is referred to as