Under the terms of a Personal Auto policy, an insured who is involved in an auto accident is NOT required to take which of the following actions?

In the context of a Personal Auto policy, the requirement for an insured to take specific actions after an auto accident is mainly focused on cooperation and providing necessary information to the insurance company. Among the choices given, the action an insured is not required to take is to institute suit against a negligent third party.

This is correct because the insured has the option to pursue legal action against another party if they choose to, but it is not a mandatory requirement imposed by their insurance policy. Many policyholders may decide to negotiate directly with the insurance companies involved rather than filing a lawsuit, which involves additional time, costs, and complexities.

The other actions listed are contractual obligations typically found within the terms of a Personal Auto policy. Cooperation in the investigation or defense of a claim is essential to allow the insurer to assess the situation effectively and handle claims. Authorizing the insurance company to obtain related medical records is necessary for the insurer to evaluate the medical aspects and ensure that claims are processed accurately. Similarly, submitting to a medical examination when requested is a common condition that allows the insurer to verify the extent of any injuries claimed. These requirements reflect the cooperative nature of insurance policies, where the insurer must collect pertinent information to provide coverage and manage claims effectively.