Which statement is true regarding Kevin's auto insurance after selling his truck?

Study for the Missouri Insurance Adjuster Exam with flashcards and multiple choice questions. Each question comes with detailed explanations to ensure you are fully prepared for your exam!

In the context of auto insurance policies, when an individual sells a vehicle, the insurance coverage on that vehicle typically does not extend to new ownership unless specified otherwise in the policy. However, most auto insurance policies include a clause that covers newly acquired vehicles for a limited time. If Kevin had a comprehensive auto insurance policy on his truck before selling it, there is a possibility that this policy might cover a new vehicle that he purchases within a certain timeframe after the sale of the truck.

This means that if Kevin sells his truck and immediately acquires a new car, his existing policy may provide coverage for that new car, at least temporarily. This is often intended to ensure that consumers have a bridge of coverage as they transition from one vehicle to another. Thus, the statement regarding coverage of losses to a new car, even after selling the truck, aligns with common practices in auto insurance regarding newly acquired vehicles.

Understanding this aspect of auto insurance helps clarify why the answer about covering losses to the new car, despite having sold the truck, is accurate within the standard conditions found in these policies.

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