Commercial Auto Insurance - Chapter 16

*(Commercial Auto Insurance - Chapter 16)* Property Damage

Damage to or loss of use of tangible property

*(Commercial Auto Insurance - Chapter 16)* Garage Coverage Form

Designed specifically for vehicle dealers, including dealers that have repair operations on the business premises. The form can be written to cover auto dealers, truck and truck-tractor dealers, motorcycle dealers, commercial trailer dealers, and recreational vehicle dealers. This form includes liability, garagekeepers, and physical damage coverage. Uninsured motorists, underinsured motorists, and medical payments coverage may be added by endorsement.

*(Commercial Auto Insurance - Chapter 16)* Which portion of the Garage coverage form covers liability for damage to property of others in the insureds care, custody, or control?

Garagekeepers

*(Commercial Auto Insurance - Chapter 16)* Additional Insured-Lessor Endorsement

When this endorsement is attached, leased vehicles can be considered owned vehicles for coverage purposes.

*(Commercial Auto Insurance - Chapter 16)* Mobile Equipment Endorsement

When this endorsement is attached, mobile equipment is considered a covered auto.

*(Commercial Auto Insurance - Chapter 16)* Mobile Equipment

Identical in the business auto and commercial general liability coverage forms. This allows the two coverages to fit together precisely and removes any doubt about which coverage applies to autos and which applies to mobile equipment.

*(Commercial Auto Insurance - Chapter 16)* Liability Coverage under the Business Auto Coverage Form

Is similar to that provided by the personal auto policy. The policy agrees to pay all sums an insured legally must pay as damages because of BI or PD to which the insurance applies caused by an accident and resulting from the ownership, maintenance, or use of a covered auto. Coverage for defense costs and supplementary payments is also included.

*(Commercial Auto Insurance - Chapter 16)* Auto

Land motor vehicle, trailer, or semitrailer, including any attached machinery or equipment, that is: - designed for travel on public roads; or - subject to compulsory or financial responsibility laws or other motor vehicle laws. It does not include mobile equipment.

*(Commercial Auto Insurance - Chapter 16)* The insured has a business auto coverage form that covers all autos. She provides a company car to her top salesperson. Suppose this salesperson borrows a neighbors car and, while on business for the company, has an accident. This salesperson has Liability Coverage under:

a Business Auto Coverage Form with the DOC endorsement attached

*(Commercial Auto Insurance - Chapter 16)* Who is insured for Garage Coverage Form

Other than covered autos, those considered insured include: - the named insured - the insureds employees - the business's directors and shareholders while acting within the scope of their duties.

*(Commercial Auto Insurance - Chapter 16)* Motor Carrier Act of 1980

Regulation that requires trucking companies to certify that they are able to meet financial obligations if they become liable for injury or damage arising from their trucking operations.

*(Commercial Auto Insurance - Chapter 16)* Covered Autos - Type of Auto: 3) Owned Private Passenger Autos Only

- Any private passenger auto the insured owns - Designates any coverage provided by the business auto coverage form - Symbol: (3)

*(Commercial Auto Insurance - Chapter 16)* Covered Autos - Type of Auto: 7) Specifically described auto's

- Applies only to autos specifically listed in the business auto coverage form declarations - Symbol: (7)

*(Commercial Auto Insurance - Chapter 16)* Covered Autos - Type of Auto: 19) Mobile Equipment subject to motor vehicle laws only

- Autos that would be considered mobile equipment if they were not subject to compulsory or financial responsibility laws or other mot vehicle laws - Symbol: (19)

*(Commercial Auto Insurance - Chapter 16)* Three principle coverage's contained in Physical Damage Coverage under the BAUT:

- Comprehensive - Specified Causes of Loss - Collision

*(Commercial Auto Insurance - Chapter 16)* Which of the following are excluded under Business Auto Liability Coverage?

- Damage to the insured's own auto - Injury to employees covered by workers compensation laws - Liability for property in the insureds custody

*(Commercial Auto Insurance - Chapter 16)* Covered Autos - Type of Auto: 8) Hired autos only

- Designates Liability and/or physical damage coverage coverage only - Only used for autos the insured has leased, hired, rented, or borrowed - Does not include autos rented or borrowed from employees or members of their households - Symbol: (8)

*(Commercial Auto Insurance - Chapter 16)* Physical Damage Coverage Exclusions under the BAUT:

- Loss to sound reproducing and recieving equipment, tapes, and records; - Loss from wear and tear, freezing, mechanical breakdown, or road damage to tires; - Loss arising out of war; - Loss Arising out of nuclear events; - Loss to covered autos while being used for, or while practicing or preparing for, organized or professional racing, demolition, or stunting activities; and - Loss due to diminution of value

*(Commercial Auto Insurance - Chapter 16)* Other Endorsements:

- Medical Payments Endorsement - Uninsured Motorists Endorsement - Underinsured Motorist Endorsement These endorsements provide coverage similar to that provided for personal auto coverage.

*(Commercial Auto Insurance - Chapter 16)* Covered Autos - Two symbols that are unique to the garage coverage form:

- Symbol 30: Customers autos left with the insured for service, repair, storage, or safekeeping (this is garagekeepers coverage) - Symbol 31: Physical damage coverage only for the dealers autos, including owned autos, autos for sale, and autos on consignment.

*(Commercial Auto Insurance - Chapter 16)* Covered Autos - Two symbols that are unique to the Truckers Coverage Form:

- Symbol 48: Trailers borrowed or leased by the named insured for which liability for loss has been assumed under a written trailer interchange agreement; applies to comprehensive, specified causes of loss or collision coverage's of trailer interchange coverage only. - Symbol 49: Trailers owned or hired by the named insured while the trailers are in someone else's possessions under a written trailer interchange agreement.

*(Commercial Auto Insurance - Chapter 16)* If the insured has liability coverage under the policy, the following vehicles are also covered autos for liability coverage:

- Temporary substitute autos - Trailers with a load capacity of 2,000 pounds or less - Mobile equipment while it is being towed or carried by a covered auto

*(Commercial Auto Insurance - Chapter 16)* Trailer interchange coverage is included in

- The Motor Carrier Coverage Form - The Truckers Coverage Form

*(Commercial Auto Insurance - Chapter 16)* Who of the following would be considered an insured under Business Auto Liability Coverage?

- The named insured - Others while using a covered auto with permission - Other who become liable for the conduct of an insured

*(Commercial Auto Insurance - Chapter 16)* The Garage Coverage Form covers both auto and business liability arising out of:

- the ownership, maintenance, or use of covered autos (garage operations-covered autos); and - garage operations (garage operations-other than covered autos) Garage customers are not covered if they have their own liability coverage. If customers do not have liability coverage on their own, the garage form protects them, but only up to the minimum limits of financial responsibility. The insured has the option of adding coverage for customers up to the full limits of the policy.

*(Commercial Auto Insurance - Chapter 16)* Specified Causes of Loss Coverage

A more limited type of comprehensive coverage and covers only - fire - lightning - theft - windstorm - hail - earthquake - flood - vandalism or mischief, and - sinking, burning, collision, or derailment of a conveyance transporting the covered auto (such as a ship)

*(Commercial Auto Insurance - Chapter 16)* Diminution of Value

An actual or perceived loss in resale or market value that results from a direct, accidental loss.

*(Commercial Auto Insurance - Chapter 16)* Which Business Auto coverage form symbol is the "any auto" symbol and is used only to designate liability coverage?

Symbol 1

*(Commercial Auto Insurance - Chapter 16)* Bodily Injury

Bodily injury, sickness, or disease, including death resulting from any of these.

*(Commercial Auto Insurance - Chapter 16)* Legal Action Against the Insurer (Condition)

The insured cannot take legal action against the insurance company unless the insured has fully complied with all terms of the policy. If the lawsuit relates to the policy's liability coverage, the insurer must also agree in writing that the insured is obligated to pay or the amount of judgement must have been determined after a trial.

*(Commercial Auto Insurance - Chapter 16)* A covered auto collided with a bird, which broke the windshield of the auto. The auto is insured for the Collision and Comprehensive coverage's under the Business Auto Coverage Form. Which coverage would pay for this loss?

Comprehensive

*(Commercial Auto Insurance - Chapter 16)* Comprehensive Coverage

Covers any loss, other than collision or overturn, that is not excluded by the policy

*(Commercial Auto Insurance - Chapter 16)* Howard is driving his company-owned truck in another state and causes an accident. That state requires a minimum of $30,000 Liability coverage, and his policy has a limit of $25,000. Howard is sued for $50,000 in damages arising out of the accident. How much will his policy pay?

$30,000

*(Commercial Auto Insurance - Chapter 16)* Covered Autos - Type of Auto: 2) Owned Autos Only

- Any Auto the insured owns - Designates other coverage's beside liability coverage - Symbol: (2)

*(Commercial Auto Insurance - Chapter 16)* Covered Autos - Type of Auto: 9) Nonowned auto's only

- Only used for autos used in the insured's business that are not leased, hired, rented, or borrowed - Includes autos owned by employees but used in the insured's business or personal affairs - Designates liability coverage only - Symbol: (9)

*(Commercial Auto Insurance - Chapter 16)* Covered Autos - Type of Auto: 4) Owned autos other than private passenger autos only

- Other types of vehicles the insured owns, such as trucks, trailers, buses, and motorcycles - Designates any coverage provided by the business auto coverage form - Symbol: (4)

*(Commercial Auto Insurance - Chapter 16)* Three options the insurer has for Settling Physical Damage Claims (Condition) under the BAUT:

- Pay for, repair, or replace the damaged or stolen property - Return stolen property to the insured at the company's expense and pay for any damages resulting from the theft - Take the damaged or stolen property at an agreed or appraised value. In the event of a total loss, depreciation and physical condition will be considered when determining actual cash value. If a repair or replacement results in better than like kind or quality, the amount of the betterment is not covered.

*(Commercial Auto Insurance - Chapter 16)* Covered Autos (Cont'ed)

Coverage may be tailored to the needs of the insured by selection of the appropriate symbols. Different symbols may be used for different coverage's. The broadest coverage available is reflected by symbol 1, because "any auto" includes all owned, hired, and nonowned autos. The most restrictive symbol is symbol 7 because it applies only specifically described autos. With the exception of specifically described autos, autos acquired during the policy period are automatically covered. For specifically described autos, an auto acquired during the policy period is only a covered auto for a particular coverage if the insured already insures all autos for this coverage or if it replaces a covered auto and the insured notifies the insurer within 30 DAYS of acquisition.

*(Commercial Auto Insurance - Chapter 16)* Loss of Use Expenses (Coverage Extension)

Covers loss of use expenses to rented autos for which the insured is legally responsible under a contract or agreement. Coverage is limited to $20 per day, to a maximum of $600.

*(Commercial Auto Insurance - Chapter 16)* Collision Coverage

Covers overturn of the covered auto and collision with another object

*(Commercial Auto Insurance - Chapter 16)* Individual Named Insured Endorsement

Extends personal auto coverage to immediate family members of the named insured

*(Commercial Auto Insurance - Chapter 16)* Drive Other Car-Broadened Coverage for Named Individuals (DOC) Endorsement

Extends the definition of a covered auto to include autos the named insured does not own, hire, or borrow while being used by the person named in the endorsement. Coverage does not apply to autos owned by the person named in the endorsement or a family member. This coverage endorsement might be especially important if the named insured under a business auto coverage form is furnishing an auto to an employee who has no personal auto insurance. Although the employee would be coverage under the business auto form while using the furnished auto or any other auto owned, hired, or borrowed by the named insured, the employee would have no coverage under the business auto form for an auto he borrowed or rented unless the endorsement was attached to the business auto form.

*(Commercial Auto Insurance - Chapter 16)* Two or More Policies Issued by the Same Insurer

If more than one policy or coverage form issued by the same insurer applies to a loss, the amount that the insured can be paid is limited to the highest single policy limit.

*(Commercial Auto Insurance - Chapter 16)* Who Is an Insured

In addition to the named insured, others have liability coverage while using a covered auto with permission. The policy also covers those who become liable for the conduct of an insured. Those who are not insureds include: - the owner of an auto hired or borrowed from an employee or family member; - a person who is working in an auto-type business; - people besides employees or lessees while moving property to or from a covered auto; and - the owner of a hired or borrowed auto

*(Commercial Auto Insurance - Chapter 16)* Pollutants

Means any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned, or reclaimed.

*(Commercial Auto Insurance - Chapter 16)* Truckers Coverage Form

Modified version of the business auto coverage form that takes into consideration the special practices and regulations that apply to the trucking industry. Because the business auto coverage form specifically excludes businesses that set themselves out for hire to haul the goods of others truckers have to obtain this coverage for their vehicles. Includes three coverage's: - Liability - Trailer interchange - Physical Damage

*(Commercial Auto Insurance - Chapter 16)* Out of State Coverage Extensions

Modify the policy's liability coverage to meet other states' financial requirements and other state laws concerning out-of-state drivers when the covered auto is being driven in that state.

*(Commercial Auto Insurance - Chapter 16)* Garage Physical Damage Coverage

Offers the same coverage as the business auto coverage form: comprehensive or specified causes of loss and collision. It specifically excludes false pretense coverage-coverage for losses when a dealer voluntarily parts with a covered auto because of a trick. (Such as coverage available by endorsement.) Auto dealers purchase physical damage coverage on a blanket basis. A few specialized exclusions apply to this blanket coverage, including: - expected profits; and - collision damage to autos being driven or transported from the point of purchase or distribution to the point of destination if this distance is 50 miles or more.

*(Commercial Auto Insurance - Chapter 16)* Coverage Extension

Provides coverage for transportation expenses. It covers expenses incurred because of the theft of the insureds vehicle beginning 48 hours after the theft and ending when the auto is returned or the insurer pays the loss. Coverage is limited to a maximum of $20 A DAY or a total of $600

*(Commercial Auto Insurance - Chapter 16)* Which symbol is used to designate coverage for owned autos required to have no-fault coverage?

Symbol 5

*(Commercial Auto Insurance - Chapter 16)* Covered Pollution Cost or Expense (Liability Coverage under BAUT)

The insurer also agrees to pay all sums an insured legally must pay as this expense. The pollution cost must be caused by an accident and result from the ownership, maintenance, or use of covered autos. The insurer will pay for covered pollution costs only if there is bodily injury or property damage caused by the same accident. Coverage for liability for pollution clean-up costs is also included under specific circumstances.

*(Commercial Auto Insurance - Chapter 16)* MCS-90 Endorsement

The most common method for satisfying these requirements is to obtain adequate truckers coverage to cover the automobile exposure, as well as commercial inland marine motor truck cargo insurance to cover the liability for cargo being hauled. If the insurance is used to establish proof of financial responsibility, this endorsement must be attached to the policy, which provides public liability coverage for bodily injury, property damage, and environmental restoration.

*(Commercial Auto Insurance - Chapter 16)* EX of a business that may be covered under a Garage cover form?

Used car dealer

*(Commercial Auto Insurance - Chapter 16)* Business Auto Coverage Form

Used to insure the private passenger and commercial auto exposures of all business other than garages, truckers, and motor carriers. Because of the specialized nature of these businesses and their unique coverage needs, separate forms were designed to cover these risks.

*(Commercial Auto Insurance - Chapter 16)* Supplementary Payments covered under the Business Auto Coverage Form:

- Expenses the insurer incurs - Cost of bail bonds up to $2,000 for violations because of a covered accident - Cost of bonds to release attachments, but only within the limit of insurance - Expenses the insured incurs at the insurer's request, including the insured's lost earnings up to $250 a day because of time off from work - Costs the insured is required to pay because of a "suit" against the insured - Interest that accrues after a judgment and before it is paid Losses covered under the supplementary payments section do not reduce the policy's limit of liability

*(Commercial Auto Insurance - Chapter 16)* Trailer Interchange Coverage

Covers damage to a specific trailer under the policy of the trucker in whose possession the trailer is at the time of loss. For coverage to apply, the trucker must be liable under a written interchange agreement, and the damage must be caused by a covered peril. This coverage is needed because truckers frequently need to borrow or hire a trailer from another trucking business for use in their own business (damage to such property is excluded under the business auto coverage form)

*(Commercial Auto Insurance - Chapter 16)* Garagekeepers Insurance

Covers the garages liability for customers' autos in its care or custody and the insureds liability for damage to customers' property that the insured has for servicing, repair, parking, or storage. The insured also has the option of purchasing direct damage garagekeepers insurance, which pays for physical to customers' property in the insureds custody, whether or not the insured is liable. Direct damage garagekeepers insurance can be provided on either a primary or excess basis; the causes of loss that can be covered include comprehensive or specified causes of loss and collision.

*(Commercial Auto Insurance - Chapter 16)* Business Auto Physical Damage Form

Covers the insureds owned or hired business autos for physical damage only.

*(Commercial Auto Insurance - Chapter 16)* Employees As Additional Insureds Endorsement

Employees can be protected under the business auto coverage form under this endorsement. It states that any employee is an insured while using an auto the business does not own, hire, or borrow when the autos are used in the business or personal affairs of the named insured. This coverage insures employees for the business use of their own autos or autos owned by family members. IT DOES NOT protect other family members who may own a vehicle being used by an employee.

*(Commercial Auto Insurance - Chapter 16)* Worldwide Liability Coverage

The coverage territory for the business auto coverage form includes the United States and its territories and possessions, Puerto Rico, and Canada. In addition, the form provides Worldwide liability coverage for private passenger autos the insured hires, leases, rents, or borrows without a driver for 30 DAYS or less. The insureds liability must be determined in a settlement agreed to by the insurer or in a suit filed in the United States or its territories and possessions.

*(Commercial Auto Insurance - Chapter 16)* Other Insurance Condition

States that the business auto coverage form provides primary coverage for covered autos owned by the insured and, for liability losses, covered trailers that are connected to covered autos owned by the insured. The coverage is excess for losses involving nonowned covered autos and covered trialers while they are connected to nonowned motor vehicles. When the business auto coverage form and the other insurance cover on the same basis, either primary or excess, the business auto coverage form pays only its proportionate share of the loss.

*(Commercial Auto Insurance - Chapter 16)* If an insured wants collision coverage for only a few autos out of an entire fleet, which symbol would be used on the declarations?

Symbol 7

*(Commercial Auto Insurance - Chapter 16)* CORRECT statements regarding the Business Auto Coverage Form Conditions:

- An insured cannot take legal action against the insurance company unless she has fully complied with all terms of the policy. - When the Business Auto coverage form and other insurance cover on the same basis, the Business Auto coverage form only pays its proportionate share of the loss. - If more than one policy issued by the same insurer applies to a loss, the amount that the insured can be paid is limited to the highest single policy limit.

*(Commercial Auto Insurance - Chapter 16)* Covered Autos - Type of Auto: 1) Any Auto

- Any auto the insured will use during the policy period, including autos that are owned, leased, hired, rented, or borrowed - Used to designate liability coverage only - Symbol: (1)

*(Commercial Auto Insurance - Chapter 16)* Which of the following coverage's are provided by Business Auto Physical Damage coverage?

- Collision - Towing and Labor Costs - Specified Causes of Loss

*(Commercial Auto Insurance - Chapter 16)* Covered Autos - Type of Auto: 5) Owned Auto's subject to no-fault law

- Designates owned autos required to have no-fault benefits in a particular state - Symbol: (5)

*(Commercial Auto Insurance - Chapter 16)* Covered Autos - Type of Auto: 6) Owned Auto's subject to compulsory uninsured motorists laws

- Designates owned autos required to have uninsured motorist coverage in a particular state - Symbol: (6)

*(Commercial Auto Insurance - Chapter 16)* Which of the following perils are included in the Business Auto coverage form's Specified Causes of Loss coverage?

- Flood - Earthquake

*(Commercial Auto Insurance - Chapter 16)* Which of the following statements concerning Business Auto Liability Coverage are correct?

- It covers BI or PD caused by an accident - It only covers sums for which the insured is legally liable. - The BI or PD must result from the ownership, maintenance, or use of a covered auto.

*(Commercial Auto Insurance - Chapter 16)* Business Auto Coverage Form includes:

- Liability Coverage; and - Physical Damage Coverage (comprehensive or specified causes of loss and collision) Uninsured Motorist, medical payments, and underinsured motorists coverage can be added by endorsement

*(Commercial Auto Insurance - Chapter 16)* Exclusions under the Business Auto Liability Coverage:

- Liability for expected or intended injuries; assumed under contract or agreement (does not apply to liability the insured would have had if there were no contract or agreement or to contracts that meet the policy's definition of an insured contract); - Liability for work-related injuries to employees, including those covered under workers' compensation and related laws and injuries caused to an employee by another employee; - Liability for damage to property owned by, transported by, or in the care, custody, or control of the insured; for damage arising out of the movement of property by a mechanical device; - Liability for bodily injury or property damage arising out of the operation of self-propelled vehicles with attached cherry pickers that are used to raise or lower workers, or that have permanently attached equipment, such as air compressors, pumps, and generators; - Liability for completed operations; for pollution damage, except as specifically provided in the policy; - Liability for BI or PD arising out of war or warlike acts; and - Liability for covered autos while being used for, or while practicing or preparing for, organized or professional racing, demolition, or stunting activities.

*(Commercial Auto Insurance - Chapter 16)* Motor Carrier Coverage Form

An alternative to the truckers coverage form. A motor carrier is anyone who transports property by auto in a commercial enterprise, regardless of whether the person was hired for that purpose. Because this broad definition encompasses truckers, those who are eligible for coverage under the truckers coverage form could also be covered under the motor carrier coverage form. HOWEVER, those who are eligible for coverage under the motor carrier form can be covered under the truckers form only if they transport goods for others by hire. Like the truckers coverage form, this form provides trailer interchange coverage. Unlike the truckers form, owned private passenger autos may be covered autos in this form.

*(Commercial Auto Insurance - Chapter 16)* Commercial Auto Policy

Can be written as a monoline policy or can be included in the CPP. A commercial auto coverage part must contain the following elements: - Common Policy Declarations - Common Policy Conditions - One of five separate coverage forms: business auto, business auto physical damage, garage, truckers, or motor carrier - Appropriate declarations for coverage form selected

*(Commercial Auto Insurance - Chapter 16)* Physical Damage Coverage under the BAUT (cont'ed):

Collision and Comprehensive coverage's are written with a deductible. Under comprehensive coverage, the deductible does not apply to loss caused by fire or lightning. Under Specified Causes of Loss Coverage, a $25 deductible applies to loss by vandalism or mischief. No other losses have a deductible under this coverage. If the insured carries comprehensive coverage, losses due to glass breakage, hitting a bird or animal, and falling objects or missiles are treated as comprehensive losses. This usually works to the insureds advantage because comprehensive covergae is usually written with a lower deuctible than collision coverage. HOWEVER, the insured may also have glass breakage paid as a collision loss. This removes a possible double deductible if glass breakage and other damage result from collision. Also available is coverage for towing and labor costs incurred when a covered private passenger auto is disabled.

*(Commercial Auto Insurance - Chapter 16)* EX of Individual Named Insured Endorsement

Consider a sole proprietor who operates a business and has business auto coverage, but no personal auto insurance. Under the business auto policy, the sole proprietor would have coverage for any auto. The sole proprietor's family members would have coverage while using autos owned, hired, or borrowed by the named insured and while using nonowned autos in the insured's business. However, they would have no coverage for their personal use of nonowned autos. Attaching the individual named insured endorsement to the business auto coverage form would extend coverage for the use of any auto to family members, subject to certain exclusions. It provides very similar coverage to that provided by the personal auto policy.

*(Commercial Auto Insurance - Chapter 16)* Covered Pollution Cost or Expense

Costs arising out of any statutory or regulatory requirement or any order by a government authority demanding that the insured test for, monitor, clean up, remove contain, treat, detoxify or neutralize, or respond to or assess the effects of pollutants. IT DOES NOT include the costs arising out of the escape of pollutants that are in property being transported or towed by, handled into, onto, or from the covered auto, or otherwise in the course of transit by the insured, or being stored, disposed of, treated, or processed in or on the covered auto. Also EXCLUDED are pollutants released before the property is moved to the place where they are accepted by the insured for movement into the covered auto, and after the pollutants are delivered by the insured. This exclusion does not apply to fuels, lubricants, fluids, exhaust gases, or other pollutants necessary for or resulting from the normal operation of a covered auto or its parts.

*(Commercial Auto Insurance - Chapter 16)* Limits of Liability under the Motor Carrier Act of 1980

The limits required affect vehicles that have a gross vehicle weight of 10,000 pounds or more. The required limits are divided into three categories, depending on the kind of hazardous cargo hauled: - $750,000 for interstate cargo transportation of nonhazardous property - $5,000,000 for interstate or intrastate transportation of large quantities of certain hazardous materials, such as compressed gas, radioactive materials, explosives, or oil - $1,000,000 for interstate or intrastate transportation of oil or other hazardous wastes Vehicles that have a gross weight of less than 10,000 pounds must comply with the financial responsibility limit of $5,000,000 if the vehicle hauls explosives, any quantity of poison gas, or large quantities of radio active materials.