Unit 17 (Commercial Auto)
Howard is driving his company-owned truck in another state and causes an accident. The state that he is driving in requires a minimum of $30,000 liability coverage, and his policy has a limit of $20,000. Howard is sued for $55,000 in damages arising out of the accident. How much will his policy pay?
$30,000
Ann is driving her company -owned truck in another state and she causes an accident. The other state requires a minimum of $40,000 liability coverage and her policy limit is $30,000. Ann is sued for $60,000 in damages arising out of the accident. How much will her liability policy pay?
$40,000
Joe a truck driver carries 20,000 pounds of nonhazardous property on his route to and from manufacturing companies. Which of the following is required limit of liability that joe must carry?
$750,000
The motor carrier act of 1980 mandated that trucking operators file proof of pollution liability. Vehicles with a gross vehicle weight of 10,000 lbs or more must carry specific limits of liability. What are certain requirements?
$750,000 for interstate transportation of nonhazardous property $1 million for interstate or intrastate transportation of oil or other hazardous waste $5 million for interstate transportation of large quantities of certain hazardous materials such as compressed gas, radioactive materials, explosives, or oil
The liability coverage in the Business Auto Coverage Form covers all of the following
-bodily injury suffered by others as a result of the insured driving a covered auto -damage to property of others as a result of an accident involving a covered auto -expenses to settle claims for losses due to an accident
Th garage covers from includes all of the following
-liability -garage keepers -physical damage coverage
the limits of liability required by the motor carrier act affect all vehicles that have a gross vehicle weight of
10,000 pounds or more
Mrs. Hanks leaves her company - owned truck at a garage for some routine maintenance work. While the mechanic is backing Mrs. Hanks' truck out of the service bay, the truck hits and injures someone. Who of the following would be considered an insured under Mrs. Hanks' business auto coverage form?
Mrs. Hanks
Which business auto coverage symbol allows coverage of all vehicles, including owned, non owned and hired autos?
Symbol 1
Which business auto coverage form symbol is the "any auto" symbol?
Symbol 1 (broadest coverage)
Which symbol covers a customers auto left with the insured for service?
Symbol 30
The business auto coverage form uses symbols to denote the vehicles to which each of the policy's coverages applies. Which symbol is the most restrictive
Symbol 7
If an insured wants collision coverage for only a few auto out of an entire fleet, which symbol would be used on the declarations?
Symbol 7 (most restrictive symbol)
What symbol is used for leased or rented autos?
Symbol 8 - hired autos
Patrick's Widget Company has a small fleet of owned cars used by local salespeople. Most of the salespeople, however, travel to other cities and rent cars to make sales calls. Which coverage should Patrick include on his commercial auto policy to cover this exposure? A) Symbol 7--Specifically described autos only. B) No coverage is available for rental cars under the commercial auto policy. C) Symbol 8--Hired autos. D) Symbol 9--Nonowned autos.
Symbol 8 - hired autos only
A & A glass company needs coverage for autos used in its business that are not leased, hired, rented, or borrowed. It also wants coverage on autos that are owned by its employees and used for business purposes. Which of the following should be listed on A & A glass company's declaration page?
Symbol 9 - nonowned autos only
Bobs trucking company contracts with boat companies to haul its boats and boat parts. The trailers are left at an interchange for pickup. What physical damage coverage is important for Bob to have to cover this exposure?
Trailer interchange coverage
Joe's plumbin has leased a fleet of vans to be used by his plumbers while going from job to job. Which of the following endorsements is especially important in this situation?
additional insured - lessor (gives the leasing company protection)
Which of the following is NOT an exclusion in the commercial auto policy liability section? -contractual liability -bail bonds -completed operations -care custody and control
bail bonds
Which of the following commercial auto coverage forms can be purchased by most businesses to provide very broad coverage for losses arising from owned and nonowned autos?
business auto
Which of the following coverage forms is used to insure the private passenger and commercial exposures of all businesses other than garages, truckers, and motor carrier?
business auto coverage form
Which of the following businesses would NOT be covered under a garage coverage form? -used car dealer -catering company -automobile dealer with an auto body repair shop -semi truck dealership
catering company
A covered auto collided with another car and overturned causing a lot of damage. The auto is insured for collision and comprehensive coverages under the business auto coverage form. Which coverage would pay for this loss?
collision
Which of the following perils is NOT included in the business auto coverage forms specified causes of loss coverage? -collision -earthquake -flood -theft
collision
When an insurer is settling a physical damage claim for a total loss, the insurer will consider which of the following when determining actual cash value?
depreciation and physical condition
Misha was involved in an auto accident in which three people were killed. When the accident occurred, she was driving a company car that she does not own. The victims survivors file suit against Misha and her employer. Which of the following will provide coverage for Misha and her employer
drive other car endorsement
Which of the following coverage extensions is NOT provided by business auto physical damage coverages?
electrical breakdown
Which of the following is NOT an element that must be included in a commercial auto policy? -common policy declarations -common policy conditions -one of five separate coverage forms -exclusions
exclusions
Which one of the following commercial auto coverages automobiles in the insureds care?
garage keepers
Which portion of the garage coverage form covers liability for damage to property of others in the insureds care, custody, or control?
garage keepers
After business hours, someone breaks into the insureds lot behind his car dealership and steals a customers auto. Which of the following coverages would apply to this loss?
garage keepers coverage in the garage coverage form
Thomas has expanded his restaurant to include a parking lot next door with valet service. His insurance agent is recommending that Thomas buy garage keepers coverage. He advises Thomas that all of the following exposures would be covered by his coverage EXCEPT -if a car stored in the parking lot is stolen -if there is collision damage to a customers car while being parked by Thomas's employee -if a car stored in the parking lot is stolen by a restaurant employee -if a nearby gas station explodes and a car parked in the lot is damaged
if a car stored in the parking lot is stolen by a restaurant employee
Which commercial auto endorsement extends personal auto coverage to immediate family members of the named insured?
individual named insured
The garage policy covers all of the following EXCEPT -insureds products and completed operations -insureds automobile liability -insureds medical bills -insureds premises and operations
insureds medical bills
What is the purpose of MCS-90, the endorsement for motor carrier policies of insurance for public liability?
it provides proof that the company carries an amount of insurance required by law
Which of the following is NOT covered under liability coverage in the business auto coverage form? -liability assumed under contract -bodily injury and property damage that arises from an accident -supplementary payments -defense costs
liability assumed under contract
Which of the following is NOT excluded under business auto liability coverage?
liability for property in the insureds custody
Which of the following expenses would not be covered entirely by supplementary payments? -loss of wages up to $350 a day -expenses incurred by the insurer -cost of bail bonds up to $2,000 -court costs because of a suit
loss of wages up to $350 a day
What is NOT included under the physical damage coverage portion of the business auto coverage form?
mechanical breakdown
The garage coverage form includes all of the following coverages EXCEPT -liability (casualty) -medical payments (casualty) -physical damage (property) -garagekeepers (property)
medical payments (casualty)
Tim purchased an auto policy for his new car. There are no other insureds listed on the declarations. Tim is considered the
named insured
Greg is a truck driver with Home Furnishings, Inc., and delivers furniture to customers. Jeff is a salesman with Home Furnishings and accompanies Greg on a delivery run to an important customer. On the way Greg runs a red light, hits a bus, and rolls the delivery truck. Jeff is seriously injured. Which coverage under the unendorsed commercial auto policy will pay for Jeff's injuries? A) Medical payments. B) No coverage is available under the commercial auto policy for this loss. C) Bodily injury liability. D) Uninsured motorist.
no coverage available under the commercial auto policy for this loss
When an employer has employees use their own autos in connection with the employers business, the employer should purchase
nonowned auto liability
Symbol 4 of the business automobile policy applies to only those autos owned by the business that are
not private passenger autos
The garage coverage form is designed to cover vehicle dealers, including dealers that have repair facilities on the premises. The form includes all of the following EXCEPT -personal damage -liability -physical damage -garage keepers
personal damage
Which of the following coverages is included in an unendorsed garage coverage form?
physical damage
The garage coverage form is designed specifically for all of the following EXCEPT -truck dealers -auto dealers -a repair shop on the dealers lot -rental car companies
rental car companies
Customers autos left with the insured for service, repair, storage, or safekeeping is covered by
symbol 30 (garage keepers coverage)
An insured owns and uses trucks, trailers, buses, and motorcycles in the course of doing business. Which symbol covers this exposure?
symbol 4
The most restrictive symbol is ____ because it applies only to specifically described autos listed in the declarations
symbol 7
Who of the following would NOT be considered an insured under business auto liability coverage? -the named insured -others while using a covered auto with permission -the owner of a borrowed auto -an employee of the insured
the owner of a borrowed auto
Which of the following losses would be paid under the business auto coverage forms comprehensive coverage?
theft of a covered auto
Which one of the following is NOT a use of auto symbols in the commercial auto policy? -to determine how coverage will apply to vehicles acquired after the policy effective date -to determine which rating territory applies to the covered autos -to identify which coverage applies to which vehicle -to customize the policy to the insureds needs by selecting the appropriate coverage
to determine which rating territory applies to the covered autos
Bob's trucking company contracts with boat companies to haul its boats as well as boat parts. Bob is concerned that he has enough coverage if he is contracted to haul a trailer owned by the boat company. What coverage should be used to provide this coverage?
trailers in insureds possession
Garage keepers insurance covers damage to property a customer leaves with the insured for all of the following purposes EXCEPT -transporting -servicing -storage -parking
transporting
Which of the following is NOT included in the business auto coverage form?
uninsured motorist coverage
Rachelle missed three days of work at her insurer's request. How much money will the supplementary payments form cover for Rachelle's lost earnings?
up to $250 a day
