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  2. New Mexico
  3. Personal Lines
  4. Personal Auto Policy

Free Personal Auto Policy Practice Questions

New Mexico Personal Lines exam — 64 practice questions.

Subtopics: Liability coverage, Collision, Comprehensive, Medical payments, Deductible, Loss settlement math, Newly acquired auto, Rental reimbursement, Excluded use, Other insurance, Duties after loss, Territory, Pure vs speculative risk, Hazard, Peril, Moral hazard, Morale hazard, Physical hazard, Law of large numbers, Risk avoidance, Risk retention, Risk transfer, Insurable interest, Indemnity, Elements of a contract, Contract of adhesion, Aleatory contract, Utmost good faith, Representation, Concealment, Warranty, Express authority, Apparent authority, Implied authority, Stock vs mutual insurer, Domestic foreign alien, Admitted insurer, Estoppel, Adverse selection, Reinsurance, Underwriting, Loss ratio, Rate regulation goals, Reciprocal insurer, Lloyds of London, Risk retention group, Self-insurance, Surplus lines, Fundamental vs particular risk, Loss exposure, Frequency vs severity, Unilateral contract, Conditional contract, Personal contract, Waiver, Material misrepresentation, Fiduciary duty, Commingling, Agent vs broker, Rebating, Twisting, Coercion, Defamation, Unfair claims settlement

Read the Personal Auto Policy study guide

Sample questions & answers

1. Part A liability coverage on a New Mexico personal auto policy pays for:

Bodily injury and property damage the insured causes to others

Liability coverage (Part A) pays for bodily injury and property damage the insured is legally liable for to others.

2. Collision coverage on a New Mexico auto policy pays for damage to the covered auto caused by:

Impact with another vehicle or object

Collision coverage pays for damage to the covered auto from impact with another vehicle or object regardless of fault.

3. Other than collision (comprehensive) coverage on a New Mexico auto policy generally covers loss from:

Fire, theft, hail, and animal strikes

Comprehensive (other than collision) covers losses such as fire, theft, hail, vandalism, and animal strikes.

4. Medical payments coverage on a New Mexico personal auto policy generally pays:

Reasonable medical expenses for the insured and passengers regardless of fault

Medical payments coverage pays reasonable medical expenses for the insured and passengers regardless of who was at fault.

All Personal Lines topics

Practice: Personal Auto Policy

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.