Auto Insurance, Commercial General Liability Insurance, Workers Compensation Insurance

collision

Astrid's car hits a deep pothole that results in a broken axle. Under what coverage, if any, will her personal auto policy pay for damage to the car? - "Collision" is the upset of a covered auto or its impact with another vehicle or object in the road, such as a pothole that damages the underside of the car.

a commercial package policy

Besides serving as a stand-alone policy, business auto insurance can be included in which of the following? - Business auto insurance can also be part of a commercial package policy that includes other business coverage forms.

medical payments exclusions for personal auto policies

Coverage for medical payments are excluded from the PAP with respect to vehicles having fewer than four wheels, vehicles used for public or livery conveyance, vehicles used as a residence, vehicles used without a reasonable belief of entitlement, and vehicles used for business purposes.

Federal Employers Liability Act (FELA)

Eduardo works for an interstate railroad and is injured on the job. His workers compensation benefits are provided under which of the following federal legislation? - The Federal Employers Liability Act provides employees of interstate railroads with a negligence remedy for on-the-job injuries.

employees exempt from workers compensation

Employees who are exempt from a state's workers compensation statute due to the nature of their work include domestic employees, agricultural employees, real estate brokers paid by commission, and "casual" employments. Casual employment generally means work that is short-term, of very limited scope, and not part of the employer's normal operations.

uninsured motor vehicle in personal auto policy (PAP)

For purposes of the PAP, an uninsured motor vehicle includes a vehicle with a negligent driver who has no auto liability policy, a hit-and-run vehicle, and a vehicle for which the driver has an auto liability policy but the insurer denies coverage or becomes insolvent. Simply not having UM coverage does not constitute being an uninsured motorist.

auto and trailer dealers only

Garage policies can be used to provide insurance to: - At one time, garage policies were available for service stations, parking garages, car dealers, and others in the automotive business. Today, the garage policy is only used to provide insurance to franchised and nonfranchised auto and trailer dealers.

Sole-proprietors, Partners, Officers, and Others Coverage endorsement

Jane is self-employed and hires two employees. When she purchases a workers compensation policy for the benefit of her employees, what endorsement would she purchase to provide workers compensation benefits for herself? - The Sole-proprietors, Partners, Officers, and Others Coverage endorsement is used when a sole-proprietor, partner, or office elects to opt into the state's workers compensation statute.

Coverage A - Liability Coverage

Katherine's auto insurance policy will pay for bodily injury and property damage because a court has determined she is responsible for the injuries and damage. Under what coverage will her policy make payment for the bodily injury and property damage? - Coverage A - Liability on the personal auto policy pays for bodily injury and property damage for which an insured is legally responsible due to an accident.

She will have no additional rights, privileges, or protection.

Porter is the named insured in the declarations of a personal auto policy. He lives with his wife, Anne, who also drives the insured auto. Anne is NOT a named insured in the declarations, but Porter understands that, as his spouse, she is also covered by this policy. Which statement is correct if Porter names her in the declarations? - Even if a resident spouse is not named in the policy declarations, he or she has the same rights, privileges, and protection under a PAP as the named insured.

Professional liability and commercial general liability (CGL)

Professional liability is not one of the exposures covered by the CGL policy and, in fact, is specifically excluded (along with auto liability).

symbol 9

Regarding the business auto policy (BAP), in addition to symbol 1, what other auto coverage symbol provides non-ownership liability coverage? - Non-ownership liability insurance can only be provided by symbol 1 (Any Auto) or symbol 9 (Nonowned Autos Only).

30/60/50

Robert's personal auto policy has liability limits of 20/40/50. He drives through a neighboring state which has a minimum liability limit requirement of 30/60/50. What will be his policy's liability limit if he should have an accident in that state? - The out-of-state coverage provision automatically increases a PAP's liability coverage to match the minimum requirements of a state that the insured enters when that state requires higher liability coverage limits than the insured's PAP usually provides.

statute provides no protection

Snow Industries violates state law and operates without complying with the state's compulsory workers compensation statute. If an injured worker sues Snow Industries for a work-related injury, how does the statute protect it? - If an employer refuses to purchase workers compensation insurance for the benefit of its employees, it is not protected by statute against lawsuits filed by workers.

No, the car thief didn't have reasonable belief of entitlement to drive Sonya's car.

Sonya's car was stolen and, when the car thief was joyriding, a drunk, uninsured driver ran a red light and broadsided her car. The car thief submitted $10,000 of medical bills to Sonya's personal auto insurer under her uninsured motorists coverage. Is the car thief's claim covered? - Under uninsured motorists coverage, no coverage applies to any person using the insured vehicle without a reasonable belief of entitlement.

non-OEM parts

Susan is in a collision with another motorist and files a collision claim with her auto insurer. The adjuster inspects the damage to her car and writes an estimate that includes replacing the damage with aftermarket parts, which are also known as: - Aftermarket parts are parts that are not manufactured by the original equipment manufacturer (OEM) that built the car. They are also referred to as non-OEM parts.

Yes, the liquor liability exclusion applies only to firms in the business of making, selling, or serving alcoholic beverages.

Sutton, Smith, and O'Halloran, a law firm, hold a reception for clients. A client becomes intoxicated at the reception and while driving home collides with a van full of passengers, several of whom file claims against the client and the law firm. Does the firm have coverage under its commercial general liability policy? - The CGL's liquor liability exclusion excludes coverage for insureds that are in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages. It does not exclude coverage for insureds who have only a host liquor liability exposure, such as insureds who serve alcohol to guests at a social function.

Anniversary Rating Date endorsement

The Anniversary Rating Date endorsement (WC 00 04 02) informs the insured that the premium, rates, and the experience rating modification factor may change on the anniversary rating date.

provide liability coverage for an insured carrier who has possession of a trailer owned by a different carrier

The basic purpose of trailer interchange insurance is to:

Symbols are used to designate the vehicles covered and the coverages that apply.

The business auto policy uses a distinctive approach on the declarations page to indicate the coverages that apply to a specific insured. Specifically, how does the policy indicate this coverage for each vehicle? - Each of the available coverages apply only to the autos that are shown by use of a numerical symbol as covered autos. Ten numerical "symbols," labeled 1 through 9, and symbol 19, represent the options for "covered auto" status.

It combines coverage for general liability, auto liability, auto physical damage, and garagekeepers insurance in a single policy.

The garage policy is used to provide insurance to franchised and nonfranchised auto and trailer dealers. When compared to other types of insurance, the garage coverage form has a unique feature. What is it? - The garage policy combines coverage for general liability and auto liability in a single form. The insured dealer can also buy auto physical damage coverage for damage to its own vehicles and to vehicles consigned to it for sale. It may also buy garagekeepers coverage for loss to vehicles left in its care.

right and duty to defend

The insuring agreement states that the insurer's right and duty to defend end when policy limits have been used up. The insurer cannot simply deposit the policy limits with the insured and abandon its obligation to defend the insured.

duty to defend, which can apply even when coverage is unclear

The liability section of the personal auto policy (PAP) imposes two duties on the insurer: the duty to indemnify (or pay for covered claims) and the duty to defend. Which duty is said to be the broader or greater duty? - The duty to defend is broader than the duty to indemnify as it even extends to cases in which it is unclear whether coverage applies.

wage loss

What does a worker suffer if he is unable to work because of an impairment that results from a workplace injury? - A wage loss is the result of a worker's inability to perform work because of an impairment that resulted from a workplace accident or illness.

a vehicle that has an auto insurance policy with minimum liability limits

Which of the following vehicles is NOT an "uninsured motor vehicle" at the time of an accident under Part C - Uninsured Motorists Coverage on a personal auto policy? - An uninsured motor vehicle has no insurance in place at the time of an accident.

8 -- Hired Autos Only

With a business auto policy (BAP), what symbol needs to appear on the declarations page to provide coverage for the rental cars used by the business? - A symbol 8 on the declarations page of a BAP indicates that coverage is extended to any vehicle the named insured leases, hires, rents, or borrows. A hired auto is not one owned by the named insured, a partner, or a family member of either.

replacement cost minus depreciation

With respect to the personal auto policy (PAP), which of the following correctly defines "actual cash value"? - Although the PAP does not define actual cash value, it is understood to mean replacement cost minus depreciation.

towing and labor charges incurred where a covered auto is disabled

With the personal auto policy (PAP), which of the following does the towing and labor costs endorsement (PP 03 03) cover? - The Towing and Labor Costs endorsement pays up to the amount specified in its schedule for towing and labor charges if the covered auto becomes disabled. It pays only for labor at the place where the auto was disabled.

Commercial general liability insurance does not cover

auto liability or professional liability - Commercial general liability insurance does not cover auto liability or professional liability.

Medical payments coverage (Part B) covers

payments for necessary medical and funeral expenses

No-fault auto insurance system

the following are true of a no-fault auto insurance system: - injured parties recover damages from their own insurers - fault is not a consideration when determining whether coverage applies - an injured party is entitled to compensation for actual economic damages - they do not compensate injured parties for damages such as pain and suffering or disfigurement

Limited Mexico Coverage endorsement

this endorsement states: - the trip into Mexico must not exceed ten days : the insurer's duty to defend arises only if the original suit for damages is brought in the United states and does not involve a Mexican citizen or resident - No physical damage is provided for repairs made in Mexico unless the covered auto cannot be driven in its damaged condition - Coverage only applies within 25 miles of the U.S. border for trips that do not exceed ten days at a time

"your covered auto" in a PAP

"Your covered auto" is an essential term in the personal auto policy. There are four types of covered autos: vehicles shown in the declarations, newly acquired autos, owned trailers, and temporary substitute autos.

pollution liability coverage form

A business that wants its commercial general liability policy to provide pollution coverage that includes cleanup costs would want the: - The pollution liability coverage form provides insurance for bodily injury and property damage liability arising from covered pollution incidents and includes costs for cleanup costs for which the insured is legally obligated to pay.

6 months

A leased auto may be listed in the declarations in a personal auto policy (PAP) if it is leased to the named insured under a written contract for at least: - A leased vehicle will be treated as an owned vehicle if it is leased to the named insured under a written contract for at least six months.

self-insured and workers compensation

A workers compensation policy covers all workplaces listed on the Information Page. Any other workplace located in a state listed on the Information Page is covered unless the insured bought another workers compensation policy to cover that workplace or is self-insured for that workplace.

a previously unknown liver condition

Aaron became ill at work and was rushed to the hospital. After he submitted bills under his employer's workers compensation policy, his claim was denied because his injury was personal in nature. Assuming the denial was legitimate, what may have caused Aaron's illness? - Personal risks are associated entirely with the worker and have nothing to do with employment.

No, but his recovery is reduced by the percentage of negligence attributed to him.

Adam suffers an on-the-job injury while serving as an employee of an interstate railroad. However, he is partially responsible for his injury due to his own negligence. Is Adam barred from recovery under the Federal Employers Liability Act? - The Federal Employers Liability Act (FELA) provides employees of interstate railroads with a negligence remedy for on-the-job injury. Contributory negligence of the employee does not bar recovery, but recovery is reduced by the percentage of negligence attributed to the employee.

trailer interchange coverage

Allied Motor Transport Co. and Brothers Cartage Co. agree to use each other's trailers while transporting cargo. While using one of Brothers' trailers, Alliance has an accident that damages the trailer. What coverage does Alliance need to pay for the damage? - Trailer interchange coverage is liability coverage that responds when the insured is legally obligated because of a covered loss to a trailer in the insured's possession. The causes of loss for which coverage may be purchased under this coverage (comprehensive, collision, and specified causes of loss) are the same as those under physical damage coverage.

self-insurer

A company that does not want to buy workers compensation insurance may comply with the state's requirement to provide it to employees by depositing with the state securities in a specified amount. In effect this means becoming a(n): - Individual workers compensation self-insurance is permitted in all states except North Dakota and Wyoming, provided the employer meets the criteria applicable to prospective self-insurers.

private carrier

A company that only provides truck transportation for its own cargo is known as what type of carrier? - A private carrier is a company that provides truck transportation of its own cargo, which is usually property it produces, uses, sells, or purchases.

products and completed operations liability

A father and his young son are shopping in a toy store for the boy's birthday present. The boy cuts his thumb on the edge of a plastic model airplane. The toy manufacturer's commercial general liability policy will cover the claim if the manufacturer has which type of insurance? - The CGL policy provides coverage for liability exposures arising from premises and operations, products and completed operations, contract, and independent contractors. CGL policies do not cover professional liability or auto liability.

It indicates a higher than average loss experience and will increase the premium.

Alhambra Construction Corp's workers compensation insurance policy has an experience modification factor of 1.8. What effect will this mod have on Alhambra's premium for workers compensation insurance? - Experience rating is used to modify employers' workers compensation premiums on the basis of their individual loss histories. An experience modification factor, or "mod," is an employer-specific multiplier that reflects that employer's loss experience relative to that of others in the same industry. A modifier of 1.0 indicates average loss experience. A debit modifier (greater than 1.0) indicates higher-than-average losses and warrants a higher premium.

employers liability limits

An employer's workers compensation and employers liability policy shows limits of 100/500/100. What coverage do these limits apply to? - Unlike workers compensation benefits, which are not limited, Employers Liability coverage contains limits for bodily injury by accident each employee, bodily injury by disease policy limit, and bodily injury by disease each employee.

named driver exclusion

Andrea's son was recently convicted of driving under the influence of alcohol. What endorsement does her auto insurance carrier want to add to her PAP in order to exclude coverage for her son when he's driving? - A named driver exclusion is an endorsement added to a PAP when the insurer and the named insured agree that no coverage will be provided if covered vehicles are being driven by the person named on the exclusion endorsement.

Federal Employers Liability Act

Andrew works for the interstate rail system and is injured on a train while repairing mechanical equipment. The conductor was operating the train at excessive speed, which contributed to Andrew's injury. Which federal workers compensation law applies to this situation? - The Federal Employers Liability Act (FELA) provides employees of interstate railroads with a remedy for an injury sustained on the job without having to overcome employer defenses of assumption of risk or fellow servant liability. An employee's contributory negligence will not bar recovery, but it will reduce it.

any auto, including owned, non-owned, or hired autos

Atlas Company has a business auto policy with symbol 1 designated for liability coverage. Which of the following types of vehicles would be covered under this symbol? - When symbol 1 is selected, any auto-whether owned, non-owned, hired, or otherwise-is a "covered" auto for that coverage. This is the broadest symbol available and is preferred by most insureds.

exclusive remedy provision

Bart suffered a serious work-related injury and receives workers compensation benefits while he is unable to work. The injury leads to his death. His wife wants to sue Bart's employer, but her attorney tells her she is prevented from suing the employer because workers compensation law contains a(n): - Under the doctrine of exclusive remedy, an injured employee who accepts workers compensation benefits is not permitted to sue their employer under most circumstances.

Maritime Coverage endorsement

Clive, a crew member on a seagoing vessel, is injured in an accident while at sea. For this bodily injury to be covered, what endorsement must be added to his employer's workers compensation policy? - The standard workers compensation policy excludes maritime exposures. When the Maritime Coverage endorsement (WC 00 02 01 A) is attached to the policy, or written as a stand-alone policy, it amends employers liability coverage to include bodily injury to a master or members of a vessel's crew.

assigned risk plan

Dedham Insurance Company is required by the state to participate in a plan that compels it to share in the issuance of workers compensation policies to high-risk employers within the state. What is this plan called? - An assigned risk plan is a state-mandated program in which all insurers that write workers compensation insurance in the state must participate.

physical damage (collision and other-than-collision) coverage

Derek takes his car to an auto dealership that loans him a car while his own is being repaired. Derek checks his personal auto policy to see what coverages apply to temporary substitute autos. He learns that a temporary substitute is NOT considered a covered auto for purposes of: - The provision defining a temporary substitute as a covered auto does not apply to physical damage (collision and other-than-collision) coverage.

Longshore and Harbor Workers' Compensation Act Coverage endorsement

Dispatch Management, a warehousing operation, employs a large crew, some of whom are occasionally assigned to the docks at seaports along the northeast coast to load and unload ship cargo. What endorsement must Dispatch add to its workers compensation insurance to ensure that the crew occasionally working the docks is eligible to receive medical and lost wage benefits if injured on the job? - Workers compensation benefits and employers liability coverage for work subject to the LHWCA can be added by endorsement, which extends the scope of workers compensation law to include the LHWCA, and by deleting the LHWCA exclusion from the employers liability section of the policy. This coverage is provided in those states listed in the endorsement schedule.

No, because personal and advertising liability coverage excludes material published with knowledge of its falsity

During an interview with a newspaper reporter, Thomas, a prominent local businessman, falsely accuses a political candidate of using campaign money for personal needs. The article is published. Is Thomas covered under his commercial general liability policy when the candidate sues him for defamation? - Although the CGL policy covers personal and advertising liability, 15 exclusions limit coverage for this exposure. Among them are a known violation of the rights of another and material published with knowledge of its falsity.

No, the racing exclusion would apply.

Edward enjoys working on car engines and has improved the performance of his car's engine. He often races the car against those of other auto enthusiasts on an abandoned length of rural highway. If Edward were injured while driving in one of these races, would his personal auto policy cover his medical expenses? - The racing exclusion precludes coverage for injuries sustained while using the personal auto in a race.

Federal Employers Liability Act Coverage endorsement

Employers liability coverage for those who employ interstate railroad workers is provided through the: - The Federal Employers Liability Act (FELA) coverage endorsement (WC 00 01 04 A) adds employers liability coverage to the workers compensation policy covering FELA employees (for example, interstate railroad workers).

Waiver of Our Right to Recover from Others endorsement

First Street Supply Company has a good business relationship with its main customer, Alliance Metals, which it wants to maintain even if a First Street employee were to get injured while visiting Alliance's factory. Which of the following endorsements might First Street add to its workers compensation policy to minimize potential disputes should that ever happen? - The Waiver of Our Right to Recover from Others endorsement is essentially a waiver of subrogation rights. It prevents the employer's workers compensation insurer from bringing an action against the other party alleging that the other party's negligence contributed to the injuries sustained by the employer's employee.

aftermarket parts

Harriet's auto mechanic tells her state law requires him to use generic parts when repairing the collision damage her car sustained in a recent accident, despite the fact she wants him to use original equipment manufacturer (OEM) parts. What type of parts will the mechanic use to repair Harriet's car? - Aftermarket parts are not manufactured by the original manufacturer that built the car; instead, they are manufactured by suppliers who compete with the original equipment manufacturers.

It will deny the claim because he was committing a crime when he was injured.

Henry is a personal trainer at a health club. To help his brother train for a strength competition, Henry secretly removes equipment from the club and gives it to his brother. One night he is loading barbells into his truck when he drops one on his foot. How will the insurer respond when Henry files a workers compensation claim for his broken foot? - State workers compensation laws may designate types of injuries that are not compensable, such as compensation for injuries sustained while the employee is committing a crime. The purpose of these exclusions is to remove from coverage injuries that are not truly the result of the employment.

PAPs cover medical payment for third parties and resident members of the insured's family. Homeowners policies cover medical payments for third parties.

How does medical payments coverage under the personal auto policy differ from medical payments coverage under a homeowners policy? - PAP medical payments coverage provides limited first-party protection for the named insured and resident family members as well as third parties who are injured in an auto accident. In this respect, it differs from the homeowners medical payments to others coverage, which does not cover the named insured's injury.

garagekeepers liability

Ibey Motors sells used cars. It also repairs cars for its customers. What type of insurance coverage does Ibey Motors need to provide to cover legal liability for vehicles in its care, custody, and control? - Garagekeepers liability provides insurance for the insured's legal obligations for loss, and loss of use, to a customer's auto while in its care for servicing or repair.

$30,000

If a state's minimum limit for auto liability is expressed as 15/30/5, that means that it requires drivers to have a minimum of how much coverage for bodily injury to all people in the other car in the event of an accident? - Some states require limits as low as 15/30/5-that is, $15,000 per person and $30,000 per accident for bodily injury and $5,000 per accident for property damage.

$16,000

If the workers employed by a factory are assigned a workers compensation classification code with a rate of $8.00 and the employer has payroll of $200,000 for that classification code, what is the unmodified premium for that classification? - To calculate the unmodified premium, divide the total amount of coverage ($200,000) by the basic unit of exposure for workers compensation ($100) to yield the total units of exposure (2,000), then multiply the total units of exposure (2,000) by the premium rate assigned to that insured ($8.00) to yield the preliminary unmodified premium ($16,000).

voluntary private market

In a state where businesses can buy workers compensation insurance from insurers that issue business policies, including commercial property, commercial general liability, and commercial auto insurance, this is called a: - In all but the four monopolistic states, businesses can buy workers compensation insurance from any insurance company licensed to write such coverage in the state. This is characteristic of a voluntary private market.

personal injury protection endorsement

In states where no-fault auto insurance is available, the personal auto policy (PAP) can be modified to provide first-party benefits for medical expenses, loss of income, funeral expenses, and similar expenses without regard to fault through the: - In states where no-fault auto insurance is available, the personal auto policy (PAP) can be modified to provide first-party benefits for medical expenses, loss of income, funeral expenses, and similar expenses, without regard to fault, through the personal injury protection (PIP) endorsement.

She would be covered only if Illinois was listed on the Other States Insurance section of Concrete Forms' workers compensation policy.

Josephine, a saleswoman for Massachusetts-based Concrete Forms, Inc., is injured while visiting one of the company's independent suppliers in Illinois. Even though the supplier is not part of Concrete Forms, Josephine's injury might be covered for workers compensation benefits under which of the following situations, if any? - Part Three, Other States Insurance, is part of the basic workers compensation policy. An other states endorsement is not required for this coverage, covers exposures in states where the employer does not have facilities but may occasionally conduct business. These states, too, must be listed on the Information Page. If a state is not listed for other states coverage, no protection is provided for incidental exposures in that state.

trailer interchange agreement

Lombard Trucking is party to a contract with Murphy Motors. Each party agrees to exchange trailers with the other during the normal operations of their businesses. In the contact, each party also agrees to hold the other harmless for damage occurring to the other's trailer when in its possession. What type of contract do Lombard and Murphy have? - A trailer interchange agreement is a contract under which two motor carriers agree to exchange trailers with each other and hold each other harmless for damage to the other's trailer while in its possession.

three years

Medical payments coverage pays for necessary medical and funeral services so long as the expenses were incurred within how many years from the accident date? - Medical payments coverage pays for necessary medical and funeral services, so long as the expenses were incurred for services rendered within three years from the accident date.

deviation from course of employment

Mel is a salesman for Acme Paper Supply Company and an avid golfer. One day he takes an extended lunch break to sneak in nine holes of golf and is injured in an auto accident while leaving the golf course. On what grounds, if any, might the workers compensation insurer deny Mel's claim? - Employees step out of the course of their employment if they deviate from their mission for some personal reason that is unrelated to their employment. The deviation must be significant. A reasonable departure from one's mission for personal necessities or comfort, such as having dinner on a business trip, is not a significant deviation.

employee vs. employer sue

Most states allow suits against an employer if the employer failed to buy workers compensation insurance or obtain authorization to self-insure as required by the law. Many states also allow suits against the employer when the injury was caused by the employer's intentional actions.

9 -- Non-owned Autos Only

Mr. Cooper requires his office manager to use her car to visit the bank and post office on a daily basis. What symbol appears on the declarations page of his business auto policy to provide liability coverage for him when his office manager's car is used for his business? - A symbol 9 on the declarations page of a BAP indicates that coverage is extended to non-owned autos that are used in connection with the named insured's business.

other than collision

Mrs. Updike returned from shopping one day to find that her car had rolled from the parking lot, down a ditch, and into the river. What coverage on her personal auto policy, if any, would cover this loss? - Other than collision coverage is open perils physical damage coverage that pays for losses caused by all perils other than collision, unless one of the exclusions applies.

symbol 1 for liability coverage on any auto; symbol 2 for medical payments, UM/UIM, and physical damage coverage on owned autos

Muller's Floral Shop uses vans to deliver flowers and is insured with a business auto policy. It wants auto liability coverage on all autos, but medical payments, UM/ UIM, and physical damage coverage only on owned autos. Which symbols does Muller's insurance agent recommend for these coverages? - When symbol 1 is selected, any auto, whether owned, non-owned, hired, or otherwise, is a "covered" auto for that coverage. Symbol 2 often is used to designate medical payments, UM, UIM, and physical damage coverage on all owned autos.

Yes, the insurer may cancel at any time if the policy was obtained through material misrepresentation.

Mutual Insurance Co. initially approves auto insurance for Ralph, who admitted on the application to a speeding ticket two years ago. Three months later, Mutual discovers that Ralph got seven speeding tickets in the past two years. Mutual cancels Ralph's insurance. Can it legitimately do so? - The insurer may cancel auto insurance at any time if the policy was obtained through material misrepresentation. A material fact is relevant information that would induce the insurer either to decline the insurance altogether, or not accept it unless a higher premium is paid.

Yes, as a temporary substitute auto, it is within the meaning of "your covered auto."

Nancy's car is damaged in a collision. While the car is being repaired, she uses a car provided by the dealership where she is having the car repaired. Is the loaned vehicle a covered auto under her personal auto policy (PAP)? - The loaner car is a temporary substitute auto since the covered auto is out of service due to its breakdown, repair, servicing, loss or destruction. A temporary substitute vehicle is within the definition of "your covered auto."

No, the expected or intended exclusion will rule out coverage.

Nate, a small business owner, bought a delivery van last year from Discount Auto Sales. Since then, he has spent a lot of money to repair the van. When he gets the latest repair bill from Discount, he loses his temper and drives the van through the plate glass window of the dealer's showroom. Will Nate's business auto policy cover Discount's claim for property damage? - The business auto policy, like liability policies in general, excludes coverage for bodily injury or property damage expected or intended by the insured.

It denies the claim.

Nelson Contracting is located in New York and has a commercial general liability (CGL) policy. It undertakes a new project at location in Paris, France, and does not buy separate insurance for the new location. Shortly after beginning the new project, the Paris location receives a completed operations liability claim. How does the CGL policy respond? - No coverage is provided for completed operations that take place outside the coverage territory, which includes the U.S., its territories and possessions, Puerto Rico, and Canada.

Form CG 00 39 provides coverage for pollution cleanup costs whereas form CG 00 40 provides no coverage for cleanup costs.

Regarding the commercial general liability (CGL) policy, which of the following correctly describes the primary difference between the Pollution Liability Coverage Form Designated Sites (CG 00 39) and the Pollution Liability Limited Coverage Form Designated Sites (CG 00 40) endorsements? - Form CG 00 39 provides coverage for pollution cleanup costs the insured is required by law to pay. Form CG 00 40, also known as the "limited form," provides the same bodily injury and property damage liability coverage as form CG 00 39, but provides no coverage for cleanup costs.

at the earlier of age 65 or remarriage

Regarding workers compensation, a surviving spouse is entitled to death benefits in the form of weekly benefits that typically end - Though details vary by state, a surviving spouse's benefits under a workers compensation policy usually end the earlier of age 65 or remarriage. Some states limit total payments to a maximum dollar amount.

an additional 10 to 200 percent of the benefits that would be provided through workers compensation

Regarding workers compensation, some states allow injured employees of an employer that has not met the state's workers compensation requirements to receive: - Some states allow injured employees of noncompliant employers to receive increased benefits, ranging from an additional 10 to 200 percent of the amount otherwise payable.

monopolistic state fund

Regarding workers compensation, what term is used to refer to a state that only allows workers compensation to be purchased from the state workers compensation fund? - A monopolistic state is one that only permits workers compensation insurance to be issued and purchased by the state's workers compensation fund. The monopolistic states are North Dakota, Ohio, Washington, and Wyoming.

temporary total disability

Regarding workers compensation, which of the following would describe a disabling work-related injury that leaves the employee unable to work in any capacity for a period of time but for which total recovery is reasonably expected? - Temporary total disability is the most common type of disability. An employee with a temporary total disability is expected to recover from the injury and return to employment but is unable to work while recovering.

compulsory no-fault

State laws that restrict an injured party's right to sue another driver under tort law, following a car accident, until a specified threshold of damages is surpassed are called: - No-fault laws vary widely from state to state. Nine states have compulsory no-fault systems that restrict, at least to some extent, a claimant's right to sue under tort law for damages until a minimum threshold of damages is surpassed.

towing and labor costs endorsement

Trang is on her way to a job interview when her car breaks down. A tow truck driver is able to fix her car and send her on her way. She pays the bill for roadside labor and submits it to her auto insurer for reimbursement. What coverage on Trang's PAP, if any, makes payment? - The towing and labor costs endorsement pays up to the amount shown on its schedule for the costs of towing and roadside labor if a covered auto is disabled.

$75,000

Travis is insured under a personal auto policy (PAP) with a combined single limit of $75,000 for Part A. He is involved in an auto accident that causes $35,000 of bodily injury and $60,000 of property damage. What is the maximum amount his insurer will pay for the accident? - A combined single limit of liability is the most the PAP will pay for the total of all bodily injury and property damage arising from one accident.

Beverly, who rear-ends an uninsured motorist

Uninsured motorists coverage applies to the named insured and family members who are injured by an uninsured motorist. Although Beverly has uninsured motorists coverage, it will NOT apply to: - Uninsured motorists coverage only applies if the uninsured motorist is legally responsible for the accident. When Beverly rear-ends the uninsured motorist, she is legally responsible for the accident.

7

What auto symbol is shown on the declarations page of a business auto policy to indicate that only specifically described autos are insured for that coverage? - If symbol 7 appears next to a particular coverage on the declarations page of a BAP, coverage is only provided for vehicles specifically described on a policy schedule.

miscellaneous type vehicle endorsement

What endorsement to the personal auto policy (PAP) would extend coverage to a dune buggy and a golf cart owned by the insured? - The miscellaneous type vehicle endorsement broadens the definition of covered autos to include miscellaneous type vehicles, which include motor homes or similar type vehicles, all-terrain vehicles, dune buggies, or golf carts. This endorsement is particularly convenient for insureds who own various types of vehicles in addition to private passenger automobiles. All of them can be insured under the PAP with this endorsement.

Jones Act

What federal law permits seamen to receive workers compensation for workplace injuries if they were partially negligent? - The Jones Act provides seamen with a negligence remedy for on-the-job injuries without having to overcome employer defenses against negligence. However, while employee negligence does not bar recovery, recovery is reduced by the proportion of negligence attributable to the employee.

It amends the truckers auto liability policy to comply with requirements of the Motor Carrier Act of 1980.

What is the basic purpose of the MCS-90 endorsement? - Motor carriers subject to regulation under the Motor Carrier Act of 1980 must furnish evidence of financial responsibility at a minimum limit (between $750,000 and $5 million). The MCS-90 endorsement confirms that the motor carrier complies with the Act.

symbol 2

Which covered auto symbol is used to designate owned autos on the business auto policy? - Symbol 2 on the BAP covers all autos owned at the beginning of the policy period plus any owned autos acquired during that period. If symbol 2 is used for liability coverage, any non-owned trailer attached to an owned power unit is also a covered auto. This symbol often is used to designate medical payments, UM, UIM, and physical damage collision coverages.

UM applies when the at-fault motorist does not have auto insurance; UIM responds when the at-fault motorist is insured with a liability limit less than the insured's UM/UIM limit.

Which of the following correctly describes the difference between uninsured motorists coverage (UM) and underinsured motorists coverage (UIM)? - The purpose of uninsured motorist (UM) coverage is to protect insureds from financially irresponsible drivers who do not have auto liability insurance and who do not have the financial resources to compensate those injured by their negligence. UIM coverage provides protection for the insured's bodily injury caused by a motorist who is not sufficiently insured (in other words, when the limits of liability carried by the at-fault motorist are lower than the UM/UIM limits carried by the insured).

the named insured's private passenger car

Which of the following is a "newly acquired auto"? - A "newly acquired auto" is a private passenger auto, or a pickup or van with a gross vehicle weight (GVW) of less than 10,000 pounds, of which the named insured becomes owner during the policy period.

damage to a covered auto by vandals while the car is on the garage owner's lot

Which of the following losses would be covered under the physical damage section of a garage policy? - Physical damage coverage is provided for collision, theft, mischief, and vandalism to covered vehicles owned by the garage. Loss to a covered auto while being driven or transported more than 50 miles is excluded from coverage.

compulsory insurance laws

Which of the following refers to state laws that require a motorist to have proof of financial responsibility as a condition of registering the auto or complying with mandatory state inspections? - Compulsory insurance laws are a form of state legislation that requires motorist to furnish proof of insurance or other financial responsibility before registering a motor vehicle.

The endorsed policy would cover a leak from an above-ground storage tank but it does not cover leaks from underground storage tanks.

Which of the following statements correctly describes how a commercial general liability (CGL) policy that includes the limited pollution liability extension endorsement will respond to a leak of gasoline from a service station's underground storage tank? - The endorsed CGL policy covers bodily injury and property damage liability arising from pollution released from the insured's premises (including above-ground tanks) but does not cover pollutants that are released from an underground or underwater container.

premises and operations liability

While visiting Archon Corporation, a prospective customer slips and falls in the lobby and breaks his arm. He files a claim against Archon. Which loss exposure covered under the commercial general liability policy applies in this case? - This loss arises under premises and operations liability, which arises out of conditions in and around the insured's premises as well as its current on- and off-premises business operations.

A covered delivery truck discharges diesel fuel into a stream when its fuel tank is ruptured in an accident, resulting in an EPA clean-up of the stream.

With respect to the pollution exclusion under the business auto policy (BAP), in which of the following cases would the BAP cover liability arising from the escape of pollutants? - The BAP covers liability for the discharge or escape of fuel, lubricants, fluids, exhaust gases, or similar pollutants that are needed for or result from the normal functioning of the covered auto or its parts, if the pollutants escape or are discharged directly from an auto part designed to hold or dispose of them. The other examples are excluded from liability coverage.

3 days

With respect to workers compensation disability benefits, the most common waiting period before benefits begin is: - Regardless of the type of disability, all states have a waiting period before disability benefits are paid. The length of the waiting period varies from state to state, but three days is common.

impairment

With respect to workers compensation insurance, what term is used to describe a worker's reduction in his or her ability to perform work, either temporarily or permanently? - An impairment is a reduction in an employee's ability to perform work--either permanently or temporarily.

symbol 10

With the business auto policy, what does an insurer use for a symbol to designate a vehicle that is NOT covered under one of the standard symbols? - Ten numerical "symbols," labeled 1 through 9 and 19, represent the standard options for "covered auto" status. If none of these symbols fits a particular need of the insured or insurer, the insurer and the insured may agree to a different description of some group of autos-for instance, "pickup trucks only"-and label it symbol 10.