Florida Insurance Claims Adjuster License Practice Exam

Which best describes the insured's coverage when borrowing his neighbor's trailer for transportation if he has an accident?

1. His PAP will extend coverage if the proper endorsement is added

2. Only the liability of the PAP extends to the trailer

3. His auto is insured, but not the borrowed trailer

4. His PAP extends liability to the trailer and Part D-Physical Damage extends $1,500 coverage to the borrowed trailer

The correct answer is: His PAP extends liability to the trailer and Part D-Physical Damage extends $1,500 coverage to the borrowed trailer

When borrowing a neighbor's trailer, the insured's personal auto policy (PAP) will cover the liability of the trailer as well as provide a maximum coverage of $1,500 for physical damage under Part D. Options A and B are incorrect because they only mention liability coverage, and do not include coverage for physical damage. Option C is also incorrect as it states that the borrowed trailer is not insured at all, which is not the case. Therefore, option D is the best answer as it accurately describes the insured's coverage when borrowing a trailer from their neighbor.