10 test

When an employee is injured in an auto accident while on company business, he/she would be covered under: A Garage Liability Form B Workers' Compensation Insurance C Garagekeepers Form D Company group health insurance

B

Under the Garage Coverage Form, covered autos are usually written on which of the following basis? A Specific B Blanket C Comprehensive D Scheduled

B By writing coverage on a blanket basis, the insured may be sure that all autos used in the business are covered, whether they are owned, non-owned, customers cars, or other.

Section II (Liability) of the Garage Coverage Form covers which of the following? A Injuries to an employee that are caused by a fellow employee B Property damage for which the insured is legally responsible C Injuries covered by Workers' Compensation D Property in the care and custody of the insured

B Section II covers property damage liability for which the insured is legally responsible.

The Garage Coverage Form may be written for all of the following, except: A Car dealership B Public parking garage C Service station D Car rental agency

D A car rental agency would not be eligible under this form, which is intended for businesses that sell, service, or store automobiles.

A business individual that carries people and property belonging to the general public for a fee from one place to another is called which of the following? A Motor carrier B Livery carrier C Contract carrier D Common carrier

D A common carrier is a business, individual, or organization that carries persons or property for a fee, from one place to another. The persons or property being transported are, or belong to, the general public. A trucker is a common carrier and may transport goods belonging to several customers at the same time.

A mandatory deductible of what amount applies to completed operations claims under Section II of the Garage Coverage Form? A $100 B $250 C $1,000 D $500

A Completed operations claims under Section II - Liability Coverage of the Garage Coverage Form are subject to a mandatory deductible in the amount of $100.

Which section of the BAP provides coverage for autos in the care, custody and control of the insured? A This coverage is not provided under the Business Auto Coverage Form B Section II C Section III D Section I

A Coverage for loss or damage to a customer's vehicle in the insured's care is excluded under the BAP. It is found in Section III of the Garage Coverage Form.

All of the following must be listed on Form MCS-90, except: A The names of the motor carrier and the insurance company B The policy premium amount C The policy number and policy dates D The limits of liability provided by the policy

B Form MCS-90 must be carried in the cabin of the vehicle and must show: The names of the motor carrier and the insurance company; The policy number and policy dates; Whether the insurance providing coverage is primary or excess; and The limits of liability provided by the policy.

Which of the following autos is covered under Symbol 9 of the Business Auto Coverage Form? A An auto leased or hired by the insured B An auto owned by the insured's employee while used in the insured's business C An auto borrowed by the insured D Any auto not used in the insured's business

B Non-owned Autos Only Coverage, Symbol 9, provides coverage for only those autos the insured does not own, lease, hire, rent or borrow, which are used in connection with the insured's business. This includes autos owned by the employees or members of their household.

Which of the following is not automatically included in a Garage Coverage Form? A Mandatory $100 deductible for Completed Operations losses B Contractual Liability C Garagekeepers Coverage D Premises liability

B The Garage Coverage Form provides liability coverage for Premises and Operations, Products, and Completed Operations Liability, but not for Contractual Liability.

What is the maximum the Supplementary Payments coverage of a BAP will pay for the cost of bail bonds? A $250 B $2,500 C $2,000 D $200

C In addition to the limit of liability, supplementary payments include claims expenses incurred by the insurer, up to $2,000 for the cost of bail bonds required because of an accident, reasonable expenses incurred by the insured at insurer's request, including up to $250 per day for an insured's actual loss of earnings, costs taxed against an insured in a lawsuit defended by the insurer, and post-judgment interest.

All of the following are true of the Business Auto Coverage Form, except: A Coverage is primary on owned autos and excess on non-owned autos B Coverage may be written on owned private passenger autos C Uninsured Motorist Coverage is included in Section II D Medical payments coverage may be added by endorsement

C Section II of the BAP provides liability coverage. Uninsured Motorist coverage is provide by optional endorsement.

Which of the following is not a specified loss under the garagekeepers section of the Garage Coverage Forms? A Fire B Vandalism C Windstorm D Theft

C While windstorm is a covered peril under the specified causes of loss of the BAP, under Section III (garagekeepers coverage) the Garage policy these causes of loss include only fire, lightning, explosion, theft, mischief, and vandalism.

Which coverage is not available under the Garage Coverage Form? A Garagekeepers B Product liability C Physical damage D Advertising liability

D Advertising liability would be available under a CGL policy.

All of the following are sections of the Garage Coverage Form, except: A Physical Damage Insurance B Liability Insurance C Garagekeepers Insurance D Comprehensive Insurance

D Comprehensive coverage is part of the Physical Damage coverage provided by Section IV.

Choose the false statement regarding commercial auto coverage. A Section II of the Garage Coverage Form - does not provide completed operations coverage B The Business Auto Coverage Form will cover liability arising from mobile equipment being carried or towed C Section IV of the Garage Coverage Form provides coverage for the insured's owned autos D Section II of the Garage Coverage Form does not provide physical damage coverage to a customer's car

A Section II of the Garage Coverage Form provides bodily injury and property damage liability coverage for losses resulting from garage operations. In addition, the form includes coverage for Premises and Operations Liability, Products Liability, and Completed Operations Liability.

Which of the following would be needed by trucking company that hires independent truckers who may hold the insured liable for their accidents? A Interline Coverage B Trailer Interchange Coverage C Truckers Coverage D Other Insurance Clause

B The Trailer Interchange Coverage is physical damage coverage for non-owned trailers and equipment if there is a loss and the insured is liable.

All of the following regarding the Garage Coverage Form are correct, except: A It provides coverage for product recall B It provides physical damage coverage for covered autos the named insured owns, hires, rents, leases, or borrows C Coverage is typically written using a blanket limit of insurance D It provides automobile liability, physical damage, and general liability insurance for auto businesses

A The Garage policy does not cover property in the care and custody of the insured, injuries covered by Workers' Compensation, and liability arising from pollution or product recall.

All of the following regarding Commercial Auto coverage are true, except: A The most frequently used commercial auto policy is the Business Auto Coverage Form B Section II of the Garage Coverage Form does not include completed operations coverage C The Business Auto Coverage Form will cover liability from transporting mobile equipment D Section II of the Garage Coverage Form does not provide physical damage coverage to a customer's car

B The Garage Coverage Form - Section II does cover completed operations.

Section II of the Garage Coverage Form does not cover: A Completed operations liability B Premise and operations liability C Damage to the customer's car in the insured's care D Products liability

C Section II (Liability) Coverage does not cover vehicles in the insured's care, custody or control. Section III (Garagekeepers Coverage) provides this coverage.

Which type of Commercial Auto policy would be best suited for a parking garage business? A Business Auto Coverage Form B Truckers Coverage Form C Garage Coverage Form D Motor Carrier Coverage Form

C The Garage Coverage Form is designed to provide coverage for businesses engaged in the sale, service, parking, or storage of automobiles. Eligible businesses include automobile vehicle dealerships, sales agencies, repair shops, service stations, storage garages, and public parking places.

Which of the following is true regarding the Business Auto Coverage Form? A Non-owned Autos Coverage covers rental private passenger type vehicles B Non-owned Autos Coverage covers autos hired for specific purposes by the insured C The main distinction between a hired auto and a non-owned auto is whether or not the auto is owned by an employee D Non-owned Autos Coverage covers autos leased for a term of 12 months or more by the insured

C The primary use of Symbol 9, Non-owned Autos Only Coverage is to protect the insured when employees use their autos in the insured's business, but are not paid to do so.

Which type of Commercial Auto policy would be best suited for a business that wished to cover its owned and hired autos against property damage only? A Garage Coverage Form B Truckers Coverage Form C Business Auto Coverage Form D Auto Physical Damage Coverage Form

D The Business Auto Physical Damage Coverage Form contains virtually the same language as Section III of the Business Auto Coverage Form and only provides physical damage coverage.