North Carolina Adjuster Practice Exam

What event is specifically excluded from coverage under Part D of the Personal Auto Policy?

1. Theft of the vehicle

2. Freezing temperatures affecting the vehicle

3. Collision with another vehicle

4. Vandalism to the vehicle

The correct answer is: Freezing temperatures affecting the vehicle

Part D of the Personal Auto Policy provides coverage for physical damage to a covered auto, including comprehensive and collision coverages. Comprehensive coverage applies to losses not resulting from a collision, such as theft, vandalism, and damage from natural events. The specific exclusion of coverage due to freezing temperatures affecting the vehicle highlights that certain types of damage are not covered under this section of the policy. For instance, if a vehicle suffers damage because of extreme cold weather, such as a cracked engine block from freezing, this type of mechanical failure is typically not included in the coverage provided under Part D. This is because such damages are often seen as stemming from wear and tear or mechanical breakdown, which are excluded from coverage under standard auto policies. In contrast, theft, collision, and vandalism are generally covered under this part of the policy, making freezing temperatures the notable exclusion. Understanding this distinction helps in determining what incidents are protected and the conditions under which an auto insurance policy operates.