AD BANKER AL P&C CH 10 Commercial Auto Coverge

Which of the following would have a need for the Garage Coverage Form? A. Ccar Dealership B. Valet Parking C. Parking Lot D. Car Wash

A. Car dealers are not only exposed to liability with customers cars in their care, but also their auto inventory as well as the general liability of customers in their business, like any other business.

The owner of a parking lot wants coverage for her liability for damage to vehicles left in her custody. She needs: A. Garagekeepers coverage B. Motor Carrier coverage C. Commercial General Liability coverage D. Business Auto coverage

A. Garagekeepers coverage is written specifically to cover the property of others in the insured's care, custody or control. All of the other choices do not offer coverage to the property of others in the insured's care.

Under the Business Auto coverage form, which of the following is NOT considered to be mobile equipment? A. Self propelled power cranes and snow plows B. Farm machinery C. Forklift D. Bulldozer

A. Self-propelled vehicles with permanently attached equipment are considered autos, not mobile equipment. The Mobile Equipment Endorsement normally provides coverage to equipment while it is being transported by a covered auto, such as: forklifts, bulldozers, farm or construction equipment, etc.

Under the Motor Carrier Act of 1980, what is the minimum limit of liability required when transporting non-hazardous materials? A. $750,000 B. $1,000,000 C. $5,000,000 D. $2,500,000

A. The Motor Carrier Act of 1980 states that the minimum liability limits required are: $750,000 for non-hazardous materials, $1,000,000 for oil or other hazardous materials, and $5,000,000 for large quantities of certain types of explosive or very dangerous hazardous materials.

Which of the following is NOT an "insured" under the Business Auto Coverage form? A. Fellow employee B. Named insured C. Person using a borrowed auto with permission of the insured D. Person liable for the conduct of the insured

A. Under Section II - Liability coverage bodily injury liability coverage does not apply to a fellow employee.

Which of the following provide coverage for vehicles leased or rented by a company for employees to use for personal use? A. Drive Other Car Coverage Endorsement B. Individual Named Insured Endorsement C. Employees as Additional Insureds Endorsement D. Symbol 9 Coverage Endorsement

A. Drive Other Car Coverage is similar to Symbol 8 for Hired or leased autos. It is most commonly used when a company executive is furnished a company car and does not carry a Personal Auto policy because he/she does not own a personal vehicle.

Under the Business Auto coverage form, the non-owned auto category represents: A. Autos owned by employees, but driven in the insured's business B. Autos rented by the insured to be used in the insured's business C. Autos leased by the insured to be used in the insured's business D. Any auto used in the insured's business

A. Non-owned autos are autos that employees own and operate in the course of the insured's business. This is referred to as Symbol 9 coverage. Ex. Pizza delivery person using their car to deliver pizzas.

The Motor Carrier Act of 1980 requires which of the following limits of liability when transporting large quantities of certain hazardous materials? A. $5,000,000 B. $750,000 C. $10,000,000 D. $1,000,000

A. The Motor Carrier Act of 1980 states that the minimum liability limits required are: $750,000 for non-hazardous materials, $1,000,000 for oil or other hazardous materials, and $5,000,000 for large quantities of certain types of explosive or very dangerous hazardous materials.

Which of the following is NOT one of the five symbol designations on the Business Auto Physical Damage Coverage form? A. Autos left for service B, Owned autos only C. Hired autos only D. Specifically described autos

A. The other two symbols are owned private passenger autos only and owned autos other than private passenger autos only.

All of the following businesses would need Garagekeepers coverage to provide coverage for physical damage to a customers car that is in the care of the insured, EXCEPT: A. Public Parking Lot B. Dry Cleaners C. Valet Parking D. Public Car Wash

B. A dry cleaner would simply purchase Bailees Customers Inland Marine form. All other choices would need Garagekeepers coverage, which is basically the same as Bailees form, but covers autos specifically in the care of a bailee.

Which of the following is covered under Section III - Garagekeepers on the Garage Coverage form? A. Completed Operations B. Vehicles and equipment owned by others in the care of the insured C. Uninsured Motorists D. Garage Operations

B. Garagekeepers Coverage provides Comprehensive, Specified Causes of Loss, and Collision coverage for the vehicle and its equipment while in the care, custody, and control of the insured.

Which of the following covers the insured's legal obligations for damage to a customer's car? A. Auto Liability B. Garagekeepers C. Physical damage D. General Liability

B. Garagekeepers coverage is the Garage Coverage form to eliminate possible coverage gaps.

Which of the following is true about the Individual Named Insured endorsement? A. Protects the named insured who does not own a car B. Applies to all resident family members C. Adds business coverage to a personal private passenger auto D. Coverage is provided only to those individuals listed on a Schedule

B. The Individual Named Insured endorsement adds all resident family members to the Business Auto Coverage form in order to allow family member permission to drive business autos.

Under the Motor Carrier Act of 1980, what is the minimum limit of liability required when transporting non-hazardous materials? A. $1,000,000 B. $750,000 C. $5,000,000 D. $2,500,000

B. The Motor Carrier Act of 1980 states that the minimum liability limits required are: $750,000 for non-hazardous materials, $1,000,000 for oil or other hazardous materials, and $5,000,000 for large quantities of certain types of explosive or very dangerous hazardous materials.

Trailer Interchange coverage is a part of the: A. Hired auto coverage form B. Truckers coverage form and Motor Carrier coverage form C. Garagekeepers coverage form D. Specified causes of loss form

B. Trailer Interchange Coverage form provides physical damage coverage for those trailers that the insured does not own but has in his/her possession along with a trailer interchange agreement. Motor Carrier Coverage is a variation of Truckers Coverage and in many ways provides even better coverage and therefore also includes this coverage..

Which of the following provides auto liability and physical damage coverage, as well as general liability for businesses engaged in the sale, service and storage of automobiles? A. Motor carrier coverage B. Garage coverage C. Garagekeepers coverage D. Business auto coverage

B. Garage Coverage provides physical damage and auto liability, as well as general liability for the businesses engaged in sales, service, and storage of automobiles.

Garagekeepers coverage insures against: A Both answers B Liability for damage to autos of others that are in the care, custody or control of the insured C Neither answer D Direct physical loss to the structure itself

B. Garagekeepers coverage is written specifically to cover the property of others in the insured's care, custody or control. It does not provide any coverage to the building or structure. That would be covered under property coverage.

When an employee drives his own vehicle in an employers business, he is covered under which of the following Commercial Auto coverages? A. Individual named insured B. Employee as additional insured C. Drive other car coverage D. Uninsured motorists coverage

B. The Endorsement 'Employees as additional insured's' is used in the same manner as Symbol 9 coverage which provides the business auto coverage for 'Non-Owned Auto's'.

The Business Auto coverage form provides all of the following Physical Damage coverages, EXCEPT: A. Specified Causes of Loss B. Basic perils coverage C. Collision D. Comprehensive

B. There are 3 coverage types in the Business Auto Coverage Form: Comprehensive, Collision, and Specified Causes of Loss (Aka) Named Peril.

All of the following statements regarding a common carrier covered under the Truckers and Motor Carrier Coverage form are correct, except: A. A business individual that carries the general public from one place to another for a fee B. A common carrier can also use the Motor Carrier Coverage Form C. A common carrier must use the Trucker Coverage Form D. A trucker that transports goods belonging to several customers at the same time

C. A common carrier can use either the Trucker Coverage Form or the Motor Carrier Coverage Form.

How many vehicles would a business be required to have to qualify for Commercial Auto Fleet Rates? A. 7 or more B. 3 or more C. 5 or more D. 10 or more

C. A company that has 5 or more vehicles would qualify for fleet rates under the Commercial Auto coverage form.

All of the following are automatically included in an unendorsed Commercial Business Auto coverage form, EXCEPT: A. Owned or leased trucks and trailers B. Borrowed private passenger autos C. Public buses, taxis, and limousines D. Certain trailers and mobile equipment of limited size and weight

C. Business Auto Coverage is used to cover: owned, leased, hired, rented or borrowed autos, trucks, trailers and semi trailers. It would not cover vehicles for hire.

Under the Motor Carrier Act of 1980, what is the minimum limit of liability required when transporting oil or other hazardous materials? A. $5,000,000 B. $750,000 C. $1,000,000 D. $2,500,000

C. The Motor Carrier Act of 1980 states that the minimum liability limits required are: $750,000 for non-hazardous materials, $1,000,000 for oil or other hazardous materials, and $5,000,000 for large quantities of certain types of explosive or very dangerous hazardous materials.

The Business Auto coverage form provides all of the following Physical Damage coverages, EXCEPT: A. Specified Causes of Loss B. Collision C. Basic perils coverage D. Comprehensive

C. There are 3 coverage types in the Business Auto Coverage Form: Comprehensive, Collision, and Specified Causes of Loss (Aka) Named Peril.

What coverage under the Motor Carrier Coverage form provides physical damage coverage for non-owned trailers and equipment in the event of an at-fault accident? A. Other Insurance Clause B. Truckers Physical Damage Coverage C. Trailer Interchange Coverage D. Commercial Truckers Coverage

C. This coverage is included because truckers and motor carriers may hire independent operators to drive the owned vehicle.

What is the maximum the insurer will pay for a covered transportation expenses claim? A. $200 B. $400 C. $600 D. $800

C. Transportation expenses are paid up to $20 per day and a maximum of $600 for temporary transportation expenses for the total theft of a covered vehicle.

Which of the following would have a need for the Garage Coverage Form? A. Valet Parking B. Car Wash C. Car Dealership D. Parking Lot

C. Car dealers are not only exposed to liability with customers cars in their care, but also their auto inventory as well as the general liability of customers in their business, like any other business.

The Business Auto Coverage Form covers all of the following, except: A. Owned private passenger autos B. Mobile equipment registered to drive on public roads C. Automatic coverage for physical damage to trailers D. Automobiles owned by employees used for business purposes

C. Owned trailers used by businesses may be covered for physical damage coverage but it is not automatic coverage.

A company that frequently rents autos and trucks for use in the business should include which symbol in the Business Auto policy Declarations? A. 1 B. 2 C. 8 D. 9

C. Symbol 8 - Hired Autos Only: is used only for autos the insured has leased, hired, rented, or borrowed. Symbol 1 is used to cover any auto, Symbol 2 is used to cover owned autos only, Symbol 9 is Non-owned Autos Only (like pizza delivery autos, etc.).

Under the Motor Carrier Act of 1980, what is the minimum limit of liability required when transporting oil or other hazardous materials? A. $5,000,000 B. $2,500,000 C. $1,000,000 D. $750,000

C. The Motor Carrier Act of 1980 states that the minimum liability limits required are: $750,000 for non-hazardous materials, $1,000,000 for oil or other hazardous materials, and $5,000,000 for large quantities of certain types of explosive or very dangerous hazardous materials.

Which Business Auto coverage form is designed to protect the employer when employees drive their own personal autos on company business? A. Symbol 8 coverage B. Hired Auto coverage C. Employers Nonownership Liability D. Drive Other Car coverage

C. Employers Nonownership Liability can be added as Symbol 9 in the Business Auto coverage form or as an endorsement called Employees as Additional Insureds.

The passage of the Motor Carrier Act of 1980 resulted in all of the following, except: A. Deregulation of the trucking industry B. Prohibition of rating bureaus to develop the rates C. Mandatory minimum liability limits D. Increase in truckers wages

D. As a result of this Act, the number of motor carriers doing business increased and the consumer costs associated with trucking decreased, thus reducing trucker wages.

Which of the following provide coverage for vehicles leased or rented by a company for employees to use for personal use? A. Individual Named Insured Endorsement B. Employees as Additional Insureds Endorsement C. Symbol 9 Coverage Endorsement D. Drive Other Car Coverage Endorsement

D. Drive Other Car Coverage is similar to Symbol 8 for Hired or leased autos. It is most commonly used when a company executive is furnished a company car and does not carry a Personal Auto policy because he/she does not own a personal vehicle.

A Car Wash that wants protection from liability to damage to a customers car while in their care should purchase which of the following? A. Garage Liability coverage form B. Business Auto coverage form C. Symbol 9 coverage form D. Garagekeepers coverage form

D. Garagekeepers is used to provide protection from the liability for damage to a customers car in the insured's care.

Which Commercial Auto form would you use as bailee coverage for autos in your care? A. Business auto coverage form B. Motor carrier coverage form C. Garagekeepers coverage form D. Bailees auto coverage form

D. In Commercial Auto - Garagekeepers coverage is 'Bailees' coverage for businesses engaged in servicing or repairing autos belonging to others in the insured's care.

Under the Business Auto coverage form, the non-owned auto category represents: A. Autos rented by the insured to be used in the insured's business B. Any auto used in the insured's business C. Autos leased by the insured to be used in the insured's business D. Autos owned by employees, but driven in the insured's business

D. Non-owned autos are autos that employees own and operate in the course of the insured's business. This is referred to as Symbol 9 coverage. Ex. Pizza delivery person using their car to deliver pizzas.

In the Business Auto coverage form, employers that want to cover employees' use of their own cars in the employer's business should opt to have Liability coverage apply to which of the following groups of autos? A. Rented B. Garagekeepers C. Any auto D. Non-owned

D. Symbol 9, Non-owned autos are autos used in the insured's business that are not leased, hired, rented, or borrowed, such as autos owned by employees, but used in the insured's business. (Ex. A pizza delivery person using their own vehicle to deliver pizzas for the restaurant.)

Which of the following is not a Symbol under Section I - Covered Autos? A. Any auto B. Specifically described on Declarations C. Owned Autos Subject to No Fault D. Dealers auto liability coverage

D. Symbol categories also describe only non-owned autos, hired autos, and owned private passenger autos only.

General Conditions in the business auto policy apply to which of the following? A. Appraisal B. Legal action against the insured C. Transfer of rights D. Bankruptcy

D. The other choices are Loss Conditions, and also included as General Conditions are concealment, misrepresentation, or fraud, liberalization, other insurance, premium audit, policy period, and territory.

All of the following are automatically included in an unendorsed Commercial Business Auto coverage form, EXCEPT: A. Owned or leased trucks and trailers B. Certain trailers and mobile equipment of limited size and weight C. Borrowed private passenger autos D. Public buses, taxis, and limousines

D. Business Auto Coverage is used to cover: owned, leased, hired, rented or borrowed autos, trucks, trailers and semi trailers. It would not cover vehicles for hire.

Which of the following losses would be paid under the Business Auto coverage form's Comprehensive coverage? A. A covered auto experienced a mechanical breakdown causing a need for repair B. A covered auto was involved in a collision with another automobile C. A covered auto was damaged when it accidentally slipped out of park and rolled down a hill and hit a power pole D. A covered auto was stolen and never recovered

D. Comprehensive coverage provides coverage for anything other than collision, that is not excluded. Mechanical breakdown is specifically excluded, the other two choices are examples of Collision.

Which of the following provides coverage for a semi tractor pulling an empty trailer called 'bobtailing'? A Trip transit coverage form B. Inland Marine Form C. Motor Truck Cargo Policy D. Truckers coverage form

D. Truckers coverage form is a type of Commercial Auto that covers a trucker including a tractor with no trailer called deadheading or a tractor pulling an empty trailer called bobtailing. A Motor truck cargo policy is an inland marine policy that covers cargo liability. Inland Marine forms also cover cargo. Trip transit is a marine transit form.