Business Auto - CH. 15

Trucking Company is the named insured under a motor carrier policy. Which one of the following parties is not an insured under this policy's liability coverage?

Georgia, whose peaches are being transported on one of Trucking Company's trucks, is not an insured.

Rocky sometimes transports hazardous materials by truck. Which of the following requires him to carry certain minimum limits of insurance coverage for doing so?

Motor Carrier Act of 1980

The private passenger autos in Parker's fleet are sometimes used for nonbusiness purposes, but his trucks are used only for business purposes. Why would Parker probably use symbol 3 to indicate which vehicles have medical payments coverage?

Parker does not need medical payments coverage on his trucks because workers compensation applies to employees injured on the job.

Consuela's business auto policy (BAP) includes comprehensive and collision coverage on all owned autos. Four of them are Jeep Wranglers. One weekend, Consuela and three of her employees take these Jeeps on a hunting expedition that does not turn out well. Which one of the following losses does her BAP cover?

The Jeep Consuela is driving overturns while climbing a hill.

When reading her business auto policy (BAP), Ericka sees several references to symbols. What does her policy mean when it refers to a symbol?

a one- or two-digit number in the declarations that indicates which coverages apply to which vehicle(s)

Which part of the business auto policy (BAP) reflects information the policyholder provided in the application for the purpose of tailoring coverage to meet the policyholder's specific needs?

business auto declarations

Which of the following expenses would not fall within those covered by a business auto policy paying a claim for "property damage," as that term is used in a BAP?

damage to property being transported in a covered auto

While Roderick was making a delivery, a radiator hose on his delivery van suddenly burst and sprayed a mix of antifreeze and water. The spray stained the customer's new concrete driveway, and the customer wants Roderick to pay to have the driveway resurfaced. The pollution exclusion in Roderick's business auto policy

does not exclude coverage for the damage.

Nelson, CEO of his company, has a company car. Since Nelson does not own another vehicle, he has no auto insurance in his own name that might protect him when he drives anyone else's car. What is an endorsement to Nelson's business auto policy that would give him this protection?

drive other car—broadened coverage for named individuals

According to the Insurance Services Office, Inc. (ISO), motor carrier policy, a trucker is a person or organization

engaged in the business of transporting by auto for hire.

Sandy requires her employees to use their personal autos to make customer calls. Sandy is protected by her business auto policy's $1 million liability limit, but her employees must rely on their personal auto policies. If Sandy adds the employees as insureds endorsement to her BAP, employees who are using their personal cars in her business will have

excess coverage for losses that exceed their personal auto liability limits.

After her insurance agent explained the options available under a business auto policy, Malinda decided to purchase specified causes of loss coverage, rather than comprehensive coverage, on the trucks in her fleet. Malinda will not have coverage for loss to a covered auto caused by:

glass breakage

Which of the following would not fall within the definition of "bodily injury" for purposes of coverage by the business auto policy (BAP)?

mental trauma

As defined in the business auto policy (BAP), the term "auto" does not include vehicles that fall under what definition?

mobile equipment

The business auto policy (BAP) may include all of the following EXCEPT

personal auto policy

The business auto policy (BAP) provides the broadest possible liability coverage when what symbol is used for liability?

symbol 1

Mollie wants her business auto policy to provide liability coverage for all owned, nonowned, and hired autos and physical damage comprehensive coverage for all owned private passenger autos. The declarations of her business auto policy should place

symbol 1 next to the liability coverage and symbol 3 next to the comprehensive coverage.

Augusta wants her business auto policy to provide liability coverage on every auto her business owns now or adds while her policy is in force, but she sees no need for coverage on any other vehicles. For liability coverage, what symbols should the declarations on Augusta's policy use?

symbol 2

Lawrence's business does not own any private passenger vehicles, so Lawrence wants his business auto policy (BAP) to provide liability coverage and specified causes of loss coverage only on the nonprivate passenger vehicles that the firm owns. The declarations of his BAP should place

symbol 4 next to the liability coverage and the specified causes of loss coverage.

The state where Vicky's business is located requires that every auto have uninsured motorists coverage. What symbol will the uninsured motorists coverages in Vicky's business auto policy probably use?

symbol 6

Because Pierre does not want to pay for collision coverage on the older vehicles in his fleet, his business auto policy is configured to permit him to select the specific vehicles to which collision coverage applies by using what symbol?

symbol 7

Most of Cyril's deliveries can be made with his van, but he occasionally borrows another company's box truck when handling a large order. Cyril's business auto policy (BAP) will cover his use of the box truck for any coverage that uses symbol 1 or:

symbol 8

Because Hallie's employees often use their personal cars to run business-related errands, Hallie should be sure the liability coverage of her business auto policy (BAP) shows symbol 1 or:

symbol 9

Barbara's car was in the dealer's shop when lightning struck the building and burned to the ground. Because the dealer has a garage policy that includes liability coverage, physical damage coverage, and garagekeepers coverage with the primary direct coverage option,

the dealer's insurer will pay for the loss to Barbara's car and other customers' cars, subject to the policy's limit and deductible.