Question 55

Cindy would need automobile physical damage insurance to be reimbursed for her stolen automobile.

Automobile physical damage insurance provides coverage for loss or damage to a vehicle, including theft. This type of insurance specifically addresses incidents where a car is stolen, allowing the owner to recover the value of the vehicle.

A) Crime Insurance.

Crime insurance generally protects businesses against losses from criminal acts, such as employee theft or fraud. It does not cover personal automobile theft, making it an unsuitable option for Cindy's situation regarding her stolen car.

B) Personal liability.

Personal liability insurance offers protection against claims resulting from injuries and damages to other people or their property caused by the policyholder. This type of coverage does not apply to the loss of a vehicle, which is why it would not reimburse Cindy for her stolen automobile.

C) Allied lines insurance.

Allied lines insurance typically includes coverage for other perils that may affect a property but is not specifically designed for automobile theft. While it may provide supplementary coverage, it does not directly address the loss of an automobile, making it inadequate for Cindy's needs.

D) Automobile physical damage insurance.

Automobile physical damage insurance is specifically created to cover losses related to physical damage to a vehicle, including theft. This means that if Cindy's automobile is stolen, this type of insurance would provide reimbursement for her loss, making it the correct choice.

Conclusion

Cindy would need automobile physical damage insurance to effectively cover the loss of her stolen automobile, as this type of insurance directly addresses vehicle theft. The other options, while relevant in different contexts, do not provide the necessary reimbursement for a stolen car, confirming that D is the only appropriate selection for Cindy's circumstance.