Insurance chap 11

A business uses tractor-trailers to transport only the property of others for hire. This best describes a:

Trucker

When an employee of an auto business is injured in an auto accident while on company business, they would be covered under:

Workers' Compensation insurance

What is the maximum amount supplementary payments coverage provided by a Business Auto policy will pay for the cost of bail bonds related to a covered accident?

$2,000

What is the maximum the Business Auto Coverage Form will pay per day for loss of use of a hired auto?

$20

Motor carriers transporting large amounts of hazardous substances are required by the Department of Transportation to have a per accident limit of insurance of:

$5 million

A motor carrier is transporting nonhazardous material for Company ZYX. As required by the Department of Transportation, the minimum limit of liability for insurance the motor carrier must have on the vehicle is:

$750,000

Which vehicle would not be eligible for coverage under an unendorsed Business Auto Coverage Form? A van that is used by a delivery firm A private passenger auto that is used in the business A trailer that is used to carry a backhoe A forklift used in the business

A forklift used in the business

When caused by a covered peril, the unendorsed Business Auto Physical Damage Coverage Form will cover:

A permanently installed stereo

An unendorsed Garage Coverage Form does not provide:

Advertising liability coverage

Which of the following autos is covered under symbol 9 of the Business Auto Coverage Form?

An auto owned by the insured's employee while used in the insured's business

An employee for a corporation does not own a car, but they are furnished with a company car. The Drive Other Car - Broadened Coverage for Named Individuals Endorsement on the corporation's Business Auto policy may be used to provide which of the following coverages for the employee's use of a rental car?

Any coverage scheduled on the endorsement

Non-owned autos under the Business Auto Coverage Form include:

Autos owned by the insured's employees while being used in the insured's business

An insured's commercial autos are insured on the Business Auto Coverage Form with comprehensive coverage. After a total theft of a covered private passenger auto, the insured incurs temporary transportation expenses. Coverage for these expenses:

Begins 48 hours after the theft

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

Car rental agency

Under Commercial Auto policies, an auto can include a self-propelled vehicle with permanently attached:

Cherry picker

Comprehensive coverage provided by the Business Auto Physical Damage Coverage Form includes all of the following perils, except: Falling objects or missiles Hitting a bird or animal Collision Theft

Collision

Section III of a Business Auto Policy with Comprehensive coverage includes all of the following coverages, except:

Collision

If an insured has collision coverage under Section III of their Business Auto policy, all of the following losses are covered, except: Collision with a deer Collision with another vehicle Collision with a tree Overturn of the covered auto

Collision with a deer

A cargo van covered by a Business Auto policy causes an accident, resulting in injury to the other driver and a fuel spill at the site of collision. The costs incurred to respond to the fuel spill are:

Covered as an exception to the Pollution exclusion

The Transportation Expenses Coverage Extension under the Business Auto Physical Damage Coverage Form applies in the event of a covered total theft of which type of auto?

Covered private passenger autos

Under a Business Auto policy, the definition of auto includes self-propelled vehicles with certain permanently attached equipment, including all of the following, except:

Diggers or drills

The Business Auto Coverage Form would cover which of the following losses? Expenses incurred to respond to damage caused by the escape of lubricant from a covered auto after a covered accident Property damage caused by the insured's completed operations Injuries resulting from the operation of mobile equipment Expected or intended injuries

Expenses incurred to respond to damage caused by the escape of lubricant from a covered auto after a covered accident

The Truckers Coverage Form is designed for:

Firms in the business of transporting goods or commodities for hire

The endorsement providing evidence of financial responsibility for motor carriers protected by the Motor Carrier Coverage Form is known as:

Form MCS-90

Which type of Commercial Auto policy would be best suited for a parking garage business?

Garage Coverage Form

All of the following statements about liability coverage provided by the Business Auto Coverage Form are correct, except: It generally excludes contractual liability coverage It provides no-fault coverage in states that require it It covers injuries to employees It covers liability from mobile equipment while being towed

It covers injuries to employees

L, who works for a local business protected by a Business Auto policy, uses their own car for business purposes. L's liability for bodily injury or property damage is covered by the BAP under what circumstance?

L is added as an insured by the Employees as Insureds Endorsement

Under a Business Auto policy, which of the following statements about towing coverage provided under the policy's physical damage coverage is correct? Towing coverage is only available for an added premium Labor must be performed at the place of disablement to be covered Coverage applies to all vehicle types Only towing costs are covered

Labor must be performed at the place of disablement to be covered

The limit of insurance that the insurer will pay for a physical damage loss covered by a Business Auto policy is the:

Lesser of the actual cash value or the cost to repair or replace with like kind and quality

Under the Garage Coverage Form, liability coverage is provided for all of the following, except:

Liability resulting from product recall

The deregulation of the trucking industry was accomplished through which 1980 regulation?

Motor Carrier Act

A business transports its own cargo and can also be hired to transport the cargo of others. This best describes a:

Motor carrier

Under the Business Auto Coverage Form, mobile equipment does NOT include: A vehicle provided mobility to road resurfacing equipment Vehicles that travel on crawler treads Motor vehicles designed for use on public roads Farm machinery designed for off-road use

Motor vehicles designed for use on public roads

An insured's trailer is covered by a Business Auto policy. While the trailer is attached to an auto that is not owned by the insured, coverage is provided:

On an excess basis

Liability coverage provided by a Business Auto policy includes all of the following, except: Property damage coverage Court costs associated with a defense provided by the insurer Physical damage coverage Bodily injury coverage

Physical damage coverage

Garagekeepers coverage included in the Garage Coverage Form covers the insured's liability for:

Physical damage to a customer's car that is in the care and custody of the insured

Section II - Liability Coverage under the Garage Coverage Form covers which of the following?

Property damage arising out of the insured's premises

Under Section II - General Liability Coverages of the Auto Dealers Coverage Form, all of the following are covered, except: Bodily injury and property damage liability Personal and advertising injury liability Property damage to the insured's product due to a defect Medical payments to others injured on the premises

Property damage to the insured's product due to a defect

The Motor Carrier Act of 1980 is important to the trucking industry because it did all of the following, except:

Removed requirements for insurance limits maintained by motor carriers

Flood is a specified cause of loss under which section of the Garage Coverage Form?

Section IV

Which section of the Garage Coverage Form provides physical damage coverage for the insured's covered autos?

Section IV

Which Business Auto policy symbol provides the broadest coverage?

Symbol 1

Which Commercial Auto symbol is unique to the Garage and Auto Dealers coverage forms?

Symbol 30

Which of the following is correct concerning the limit of insurance applying to liability coverage under the Business Auto Coverage Form?

The limit is the most the policy will pay for any single accident

An insured has two coverage forms issued by the same insurer that apply to a covered loss to a commercial auto. The Two or More Coverage Forms or Policies Issued By Us condition specifies that:

The maximum payment is the highest applicable limit of insurance

A company has a Commercial Package policy that includes the Business Auto Coverage Form. The liability coverage provided by the form considers all of the following to be insureds, except:

The named insured's partner while using an auto they own in the course of business

Which section of the Business Auto Coverage Form provides auto medical payments coverage?

This coverage is available by endorsement only

XYZ Auto has a Business Auto policy. Which section of the BAP provides coverage for autos in the care, custody, or control of the insured?

This coverage is not provided by the Business Auto policy

Physical damage coverage under the Business Auto Coverage Form could include all of the following, except: Collision coverage Specified causes of loss coverage Uninsured motorists coverage Comprehensive coverage

Uninsured motorists coverage

Which of the following is not a specified cause of loss under Garagekeepers coverage provided by the Garage Coverage Form?

Windstorm

The Uninsured Motorists Coverage Endorsement available to Commercial Auto policies provides coverage in the event an uninsured driver causes an accident with the insured and the insured sustains:

Bodily injury

Business Auto policies would provide coverage under Section II - Covered Autos Liability Coverage for all of the following, except: The cost of bonds to release attachments Liability arising out of an insured contract Postjudgment interest Bodily injury to another party that was intentionally caused by an insured

Bodily injury to another party that was intentionally caused by an insured

Which type of Commercial Auto policy would be best suited for a company whose employees used their own vehicles to make sales calls?

Business Auto Coverage Form

Which type of Commercial Auto policy would be best suited for a business that wished to cover its owned and hired autos against physical damage only?

Business Auto Physical Damage Coverage Form

Which of the following best describes a business that carries people and property belonging to the general public for a fee, from one place to another? Motor carrier Contract carrier Distributor Common carrier

Common carrier

Under the Garage Coverage Form, Section II - Liability Coverage provides all of the following coverages, except: Premise and operations liability Products liability Damage to the customer's car in the insured's care Completed operations liability

Damage to the customer's car in the insured's care

Under Commercial Auto policies, all of the following are common exclusions for liability coverages, except: War or rebellion Defense costs Organized racing or stunting activity Expected or intended injuries

Defense costs

Which of the following losses would not be eligible for liability coverage under the Business Auto Coverage Form? Bodily injury to an employee using their own auto in the insured's business Property damage caused by a private passenger automobile owned by the insured and used in the insured's business Bodily injury to the driver of another vehicle caused by a semitrailer used in the insured's business Property damage caused by an employee using their own auto in the insured's business, with respect to the named insured's liability

Bodily injury to an employee using their own auto in the insured's business

An insured has a business Auto policy with the Auto Medical Payments Coverage Endorsement. Necessary medical and funeral expenses incurred by an insured who sustained bodily injury in an accident are covered by the endorsement for expenses incurred within:

Three years

A mandatory deductible of what amount applies to certain completed operations claims under Section II of the Garage Coverage Form?

$100