Louisiana P&C Adjuster Practice Exam

Which statement is TRUE about the "Extended Non-Owned Coverage - Vehicles Furnished or Available for Regular Use" endorsement?

1. It provides only property damage coverage

2. It provides liability and medical payments coverage

3. It is not available in Louisiana

4. It only covers rented vehicles

The correct answer is: It provides liability and medical payments coverage

The statement that the "Extended Non-Owned Coverage - Vehicles Furnished or Available for Regular Use" endorsement provides liability and medical payments coverage is accurate because this endorsement is specifically designed to extend coverage to vehicles that are not solely owned by the insured but are furnished or available for regular use. This includes coverage for liabilities arising from the use of these vehicles, such as bodily injury or property damage claims against the insured, as well as medical payments for injuries sustained by others in the insured's vehicle. This endorsement is essential for individuals who may use vehicles that they do not own but rely on regularly and need liability coverage in the event of an accident. By offering both liability and medical payment coverage, it ensures that the insured is better protected in scenarios involving third-party claims or injury expenses, adding a significant layer of financial protection. The other options, such as the endorsement providing only property damage coverage, being unavailable in Louisiana, or covering only rented vehicles, do not accurately capture the intent and scope of the endorsement. The endorsement covers a broader range of scenarios involving any vehicles available for the insured's regular use, not just rented vehicles or limited to property damage coverage.