Difficulty: Medium

Average Score: 50%

Which of the following would be covered under the uninsured motorists section of a personal automobile policy?

Rationale

A hit-and-run driver who strikes the insured's vehicle but cannot be identified.

Uninsured motorists coverage is designed to protect insured individuals from damages caused by drivers who cannot be identified or do not have insurance. A hit-and-run driver fits this definition, as the driver flees the scene and cannot be traced, leaving the insured without recourse.

A (A hit-and-run driver who strikes the insured's vehicle but cannot be identified) CORRECT

This option correctly describes a scenario that is explicitly covered under uninsured motorists coverage. Since the driver cannot be identified and does not have insurance, the insured can claim damages under this policy provision, ensuring they are compensated for their losses.

B (A driver with a vehicle owned by a large company that has elected to self-insure rather than purchase insurance who strikes the insured's vehicle) YOUR ANSWER

This choice is incorrect because a self-insured entity is not considered an uninsured motorist. The company has taken on the financial responsibility of covering its own liabilities, thus not falling under the uninsured motorists section of a personal automobile policy.

C (An insured driver driving a vehicle he does not own who strikes the insured's vehicle) YOUR ANSWER

This scenario does not apply to uninsured motorists coverage because the driver is insured, regardless of whether they own the vehicle. Since the driver has insurance, the insured would need to seek compensation through the driver's policy, not the uninsured motorists provision.

D (An insured's 15-year-old unlicensed son who steals the family car and strikes the insured's vehicle) YOUR ANSWER

While this situation involves an uninsured driver, the act of theft complicates the coverage. Most personal automobile policies do not cover damages from vehicles operated without permission or by unlicensed drivers, which means the scenario would not qualify for uninsured motorists coverage.

Conclusion

Uninsured motorists coverage serves to protect insured individuals from damages caused by unidentified or uninsured drivers. A hit-and-run driver exemplifies this category, allowing the insured to claim for damages. In contrast, scenarios involving self-insured entities, insured drivers, or unauthorized vehicle use do not meet the criteria for this specific coverage, illustrating the importance of understanding the nuances of automobile insurance policies.

Related Questions

View all