Quiz 7- Commercial Auto

The insuring agreement for Garage Liability states: "We will pay all sums an 'insured' legally must pay as damages because of 'bodily injury' or 'property damage' to which this insurance applies caused by an _________ and resulting from 'garage operations'"

Accident

Comprehensive coverage covers all loss not considered a Collision except that which are specifically ________.

Excluded

Vehicles in the Garage Policy are designated using a ________ nomenclature.

Numerical

Your insured advises you they wish to have liability coverage for the use of "any auto". You select symbol _____ to cover this exposure.

Symbol 1

TRUE/FALSE: In the Business Auto Policy PIP, UM, and Medical Payments must be added by endorsement.

True

TRUE/FALSE: Symbol 1 is used to designate "any auto".

True

TRUE/FALSE: Symbol 1 of the BAP provides the broadest coverage for Liability.

True

The BAP's Drive Other Car Coverage: a) Protects employees who don't personally own a vehicle b) Extends coverage to customers vehicles c) Is necessary if an employee has their own vehicle and insurance d) All of these statements are correct

a) Protects employees who don't personally own a vehicle

The insuring agreement for Garage Liability states: "We will pay sums an 'insured' legally must pay as damages because of 'bodily injury' or 'property damage' to which this insurance applies caused by an _________ and resulting from 'garage operations'." a) Lawsuit b) Crime c) Accident d) Tortfeasor

c) Accident

Which policy Form is used for the following exposure? 1) This policy Form insures hired transporters of other's goods. 2) This policy Form insures businesses engaged in repairing, servicing, selling, parking, or storing autos. 3) This policy Form insures automobile exposures of all businesses other than garage or trucking businesses.

1) Truckers Policy 2) Garage Policy 3) Business Auto Policy

Your insured has a BAP and wants to know if Section II Liability provides coverage for completed operations... a) You advise your client that complete operations are not covered b) You advise your client that completed operations are covered c) You advise your client that the policy does not address completed operations in any manner d) None of these statements are correct

a) You advise your client that complete operations are not covered

Your Garage Policy insured wants to know if Section II Liability provides coverage for liability for movement of property by a mechanical device such as a hand-truck? a) You advise your client that this type of exposure is covered b) You advise your client that this type of exposure is specifically not covered c) You advise your client that the policy does not address movement of property by a mechanical not attached to the covered auto in any manner d) You refer your client to their property policy

a) You advise your client that this type of exposure is covered

The BAP policy includes all BUT which of the following "usage" categories: a) Retail b) Long-Hauler c) Commercial d) Service

b) Long-Hauler

Klassic Kars, your Garage Policy insured, has filed a claim under Section III Garagekeeps, for a loss in which the insured's employees have been found to be responsible for the theft of a customers 1968 Ford Shelby Mustang; is this exposure covered? a) Yes, all liability exposures are covered under Section III b) No, theft or conversion by the insured, the insured's employees or shareholders is specifically excluded c) Yes, but subject to a $100 liability deductible d) Yes, but subject to a $500 liability deductible

b) No, theft or conversion by the insured, the insured's employees or shareholders is specifically excluded

Klassic Kars, your Garage Policy insured, has Section III Garagekeeps on a Direct Coverage - Excess Basis. A Klassic Kars customer had their windshield and windows smashed out while being stored on the Klassic Kar's premises. How will the policy respond? a) The Garage policy will pay for 100% of the loss on an excess basis after the owner's insurance has been applied and exhausted b) The Garage policy will pay for 100% of the loss on a first party basis less any applicable deductible on a primary basis without regard to the insured's legal liability or the owners physical damage coverage c) The Garage policy excludes property in the insured's care, custody, or control d) The Garage policy will pay less a $100 liability deductible for work performed by the insured

b) The Garage policy will pay for 100% of the loss on a first party basis less any applicable deductible on a primary basis without regard to the insured's legal liability or the owners physical damage coverage

The Garage Policy endorsement "False Pretense" provides coverage for: a) Product liability for the insured's own product/work ($250 deductible applies) b) Autos being driven/transported 50 miles or further from the point of purchase or distribution c) Loss from acquiring an auto from someone who does not have legal title or voluntarily parting with a covered auto by trick or scheme d) None of the above

not a (read section 5.4 of study manual)

The Garage Policy's Section II provides liability coverage less a $_____ deductible for work performed by the insured.

$100

Underwriting radius of operations include: Local = within _____ miles; Intermediate = _____ to _____ miles; and ________ distance = over 200 miles.

50 50 200 Long

Under the Garage Policy, Section II provides liability coverage less a _____ deductible for work performed by the insured. a) $100 b) $250 c) $500 d) $1,000

a) $100

Under Section III of the BAP insuring agreement, the company agrees to pay for ________ and ________ loss. a) Direct and Accidental b) Indirect and Intentional c) Obvious and Overture d) Pain and Suffering

a) Direct and Accidental

The Garage Insurance Policy covers Business Auto and Commercial General Liability coverage for: a) Exposures of selling b) Exposures of repairing c) Exposures of servicing d) Exposures of bracing

a) Exposures of selling b) Exposures of repairing c) Exposures of servicing

In the BAP Comprehensive covered perils include: (select all that apply) a) Hail b) Glass Breakage c) Wind Damage d) Theft

a) Hail b) Glass Breakage c) Wind Damage d) Theft

This endorsement Broadens BAP coverages for PAP style protection when the named insured is an individual and the policy includes one or more covered autos which are eligible for the PAP. a) Individual Named Insured b) Drive Other Car Coverage c) Named Individuals-Broadened PIP

a) Individual Named Insured

Section II of the Garage Policy excludes which of the following? (choose all that apply) a) Liability for pollution or contamination b) Claims for product or work recall c) Bodily Injury d) Employee Injuries

a) Liability for pollution or contamination b) Claims for product or work recall d) Employee Injuries

The BAP's Section II does not apply to: (select all that apply) a) Liability for pollution or contamination b) Employee Injuries c) Liability assumed under contract d) Negligence

a) Liability for pollution or contamination b) Employee Injuries c) Liability assumed under contract

In Section III of the BAP, Specified Causes of Loss is: a) More limited in coverage than Comprehensive coverage b) Broader in coverage than Comprehensive coverage c) The same as Comprehensive coverage d) Another name for Collision coverage

a) More limited in coverage than Comprehensive coverage

The BAP's Named Individuals Broadened PIP endorsement: a) Named parties (spouse and resident family members) are treated as named insured for PIP coverage b) the Named Individuals Broadened PIP endorsement increases PIP coverage up to $100,000 c) The Named Individuals Broadened PIP endorsement is a PAP endorsement d) Broadens BAP coverages for PAP style protection

a) Named parties (spouse and resident family members) are treated as named insured for PIP coverage

Your insured advises you they wish to have liability coverage for the use of any auto. Which symbol do you use for this blanket coverage? a) Symbol 1 b) Symbol 2 c) Symbol 3 d) Symbol 7

a) Symbol 1

Your insured advises you they wish to have liability coverage for the use of any auto. Which symbol do you use for this blanket coverage? a) Symbol 1 b) Symbol 2 c) Symbol 3 d) Symbol 99

a) Symbol 1

Taylor Rental and Repair advises you they wish to have liability coverage for "any auto" in their Garage Policy. Which symbol do you use for this blanket coverage? a) Symbol 21 b) Symbol 22 c) Symbol 23 d) Symbol 27

a) Symbol 21

Your insured advises you they wish to have liability coverage for all autos they own. The insured tells you that all insured vehicles will be of the private passenger type (they also advise vehicles are changed frequently throughout the year). Which symbol do you use for this flexible coverage? a) Symbol 3 b) Symbol 7 c) Symbol 8 d) Symbol 77

a) Symbol 3

Janet's Garage has replaced all four tires on a customer's truck. The truck's rear right wheel flew off when the customer left the garage striking a pedestrian. How will the Garage Policy respond? a) The Garage Policy will respond to liability associated with the work performed by the insured less a $100 deductible b) The Garage Policy will respond to liability associated with the work performed by the insured less a $250 deductible c) The Garage Policy will respond to liability associated with the work performed by the insured less a $500 deductible d) The Garage Policy will respond to liability associated with the work performed by the insured less a $1,000 deductible

a) The Garage Policy will respond to liability associated with the work performed by the insured less a $100 deductible

Which, if any, of the following perils are covered in the BAP's Specified Causes of Loss coverage? a) Windstorm and Hail b) Fire and Explosion c) Nuclear and War d) Theft and Vandalism

a) Windstorm and Hail b) Fire and Explosion d) Theft and Vandalism

Your BAP insured has his truck damaged in an earthquake. He has Specified Causes of Loss coverage on the vehicle. Is the earthquake damage covered? a) Yes, earthquake is a specified cause of loss b) No, only specified causes of loss are covered c) No, earthquake damage is covered only under Comprehensive coverage d) None of the above

a) Yes, earthquake is a specified cause of loss

Your BAP insured has his truck damaged in an earthquake. He has Specified Causes of Loss coverage on the vehicle. Is the earthquake damage covered? a) Yes, earthquake is a specified cause of loss b) No, only specified causes of loss are covered c) No, earthquake damage is covered only under Comprehensive coverage d) None of these apply

a) Yes, earthquake is a specified cause of loss

Betty Blander of Blander's Auto Beauties has asked if her Garage Policy provides coverage for completed operation? a) You advise your client that completed operations are covered b) You advise your client that completed operations are not covered c) You advise your client that the policy does not address completed operations in any manner d) You advise your client that completed operations has a $750 deductible for work performed

a) You advise your client that completed operations are covered

The BAP's Individual Named Insured endorsement: a) Extends coverage to customers' vehicles b) Broadens BAP coverage for PAP style protection when the named insured is an individual c) Is necessary if an employee has their own vehicle and insurance d) None of these apply

b) Broadens BAP coverage for PAP style protection when the named insured is an individual

Your commercial insured has struck a dog in a one vehicle accident which resulted in several thousand dollars of damage to her vehicle. What type of physical damage claim will she be filing? a) Cruelty to Animals b) Comprehensive c) Special d) Collision

b) Comprehensive

Your commercial insured has struck a dog in a one vehicle accident which resulted in several thousand dollars of damage to her vehicle. What type of physical damage claim will she be filing? a) Special b) Comprehensive c) Collision d) Cruelty to Animals

b) Comprehensive

The BAP's Section II Liability coverage does not apply to: (a) liability assumed under any ________ or agreement; (b) ________ injuries; (c) damage to property owned or transported by or in the care, custody, or control of the insured; (d) property damage before an insured's ________ of or after an insured's ________ of property; (e) property damage as a result of "property movement" if by an unattached ________ device (other than a hand truck); (f) pollution; (g) mobile equipment; (h) intentional injury; (i) completed operations; (j) organized ________, stunt, or demolition contests; and (k) war. a) Racing b) Contract c) Employee d) Acceptance e) Delivery f) Mechanical

b) Contract c) Employee d) Acceptance e) Delivery f) Mechanical a) Racing

This endorsement covers persons named therein (including their spouses) for use of automobiles (1) which are not covered autos under the BAP and (2) which they do not own. a) Individual Named Insured b) Drive Other Car Coverage c) Named Individuals-Broadened PIP

b) Drive Other Car Coverage

The BAP's section II Liability coverage does not apply to: (select all that apply) a) Negligence b) Employee injuries c) Property in the insureds care, custody, or control d) Organized racing

b) Employee injuries c) Property in the insureds care, custody, or control d) Organized racing

Which, if any, of the statements below are correct? I. The BAP includes $30 per day. $900 maximum Transportation Expense. II. Comprehensive coverage provides the insured broader coverage than Specified Causes of Loss coverage in the BAP. a) I only b) II only c) Both are correct d) Neither is correct

b) II only

Klassic Kars, your Garage Policy insured, has filed a claim under Section III Garagekeeps, in which the insured has agreed to a "contractual liability"; is this exposure covered? a) Yes, all liability exposures are covered under Section III b) No, contractual liability exposures are excluded c) Yes, but subject to a $100 liability deductible d) Yes, but subject to a $500 liability deductible

b) No, contractual liability exposures are excluded

The BAP's Drive Other Car Coverage: a) Is necessary if an employee has their own vehicle and insurance b) Protects employees who don't personally own a vehicle c) Extends coverage to customers vehicles d) None of these apply

b) Protects employees who don't personally own a vehicle

Symbol 27 is used in the Garage Policy to cover: a) Owned Autos Only b) Specifically Described Autos c) Owned Private Passenger Vehicles Only d) Any Auto

b) Specifically Described Autos

Your insured advises you they wish to have liability coverage for all autos they own and they tell you that they change vehicles frequently throughout the year. Which symbol do you use for this flexible coverage? a) Symbol 1 b) Symbol 2 c) Symbol 3 d) Symbol 66

b) Symbol 2

Acme Garage advises you they wish to have liability coverage for all autos they own and they change vehicles frequently throughout the year. Which symbol do you use for this flexible coverage? a) Symbol 21 b) Symbol 22 c) Symbol 23 d) Symbol 27

b) Symbol 22

Your BAP insured has suffered hail damage to his truck. He has Specified Causes of Loss coverage on the vehicle. Is the hail damage covered? a) No, only specified causes of loss are covered b) Yes, hail is a specified cause of loss c) No, hail damage is covered only under Comprehensive coverage d) No, hail damage is covered only under collision coverage

b) Yes, hail is a specified cause of loss

Mrs. Murser, your BAP insured, has suffered a theft loss to two vehicles in her fleet. She has Specified Causes of Loss coverage on the vehicles. Are these losses covered? a) No, only specified causes of loss are covered b) Yes, theft is a specified cause of loss c) No, the theft peril is covered only under Comprehensive coverage d) None of the above

b) Yes, theft is a specified cause of loss

Section III Physical Damage in the BAP covers: a) Collision b) Comprehensive or Specified Perils c) Both A & B d) Neither A nor B

c) Both A & B

Under BAP's Section II Liability, who is defined as an insured? a) Named insured for any auto b) Permissive users of covered autos owned, hired, or borrowed by the named insured c) Both A & B d) Neither A nor B

c) Both A & B

Which, if any, of the captioned statements are correct? I. In the BAP damage from a falling object or missile to an insured vehicle is treated under Comprehensive coverage. II. Glass damages are defined as a Comprehensive peril. a) I only b) II only c) Both are correct d) Neither is correct

c) Both are correct

Section III Garagekeepers covers damage to a customer's car in the care, custody, and control of the named insured... a) Coverage is "optionally" available irrespective of legal liability b) If the insured is legally liable c) Both statements are correct d) Neither is correct

c) Both statements are correct

The BAP insures which of the following exposures? a) Livery conveyances b) Private Passenger type autos c) Both statements are correct d) Neither is correct

c) Both statements are correct

Under the BAP's Section II Liability who is defined as an insured? a) Named insured for any covered auto b) Permissive users of covered autos owned, hired or borrowed by the named insured c) Both statements are correct d) Neither statement is correct

c) Both statements are correct

The BAP's Individual Named Insured endorsement: a) Is necessary if an employee has their own vehicle and insurance b) Extends coverage to customer vehicles c) Broadens BAP coverages for PAP style protection when the named insured is an individual d) The BAP does not offer an Individual Named Insured endorsement

c) Broadens BAP coverages for PAP style protection when the named insured is an individual

The insuring agreement for Garage Liability states: "We will pay all sums an 'insured' _________ must pay as damages because of '_________ injury' or '_________ damage' to which this insurance applies caused by an _________ and resulting from '_________ operations'" a) Garage b) Property c) Legally d) Bodily e) Accident

c) Legally d) Bodily b) Property e) Accident a) Garage

The endorsement covers named parties (i.e. spouse and resident family members) as named insureds for PIP coverage. a) Individual Named Insured b) Drive Other Car Coverage c) Named Individuals-Broadened PIP

c) Named Individuals-Broadened PIP

The BAP's Named Individuals Broadened PIP: a) Covers person named in the endorsement for use of automobiles which are not covered autos under the BAP and which they do not own b) Broadens BAP coverages for PAP style protection c) Named parties (spouse and resident family members) are treated as named insureds for PIP coverage d) None of these apply

c) Named parties (spouse and resident family members) are treated as named insureds for PIP coverage

Your insured advises you they wish to have liability coverage for all autos they own. The insured tells you that all insured vehicles will be of the private passenger type (they also advise vehicles are changed frequently throughout the year). Which symbol do you use for this flexible coverage? a) Symbol 21 b) Symbol 22 c) Symbol 23 d) Symbol 27

c) Symbol 23

Your insured has a BAP and wants to know if Section II Liability provides coverage for damage to property the insured owns. a) You advise your client that the policy does not address an insured being liable to themselves in any manner b) You advise your client that this type of exposure is covered c) You advise your client that no liability can result from an act by the insured to an insured's own property (i.e. they can't be liable to themselves) and therefore no coverage exist d) Each of these is correct

c) You advise your client that no liability can result from an act by the insured to an insured's own property (i.e. they can't be liable to themselves) and therefore no coverage exist

Your insured has a Garage Policy and wants to know if Section II Liability provides coverage for damage to property the insured owns... a) You advise your client that this type of exposure is covered b) You advise your client that this type of exposure is not covered c) You advise your client that no liability can result from an act by the insured to an insured's own property (i.e. they can't be liable to themselves) and therefore no coverage exist d) None of the above

c) You advise your client that no liability can result from an act by the insured to an insured's own property (i.e. they can't be liable to themselves) and therefore no coverage exist

The insuring agreement for Garage Liability states: "We will pay all sums an 'insured' legally must pay as damages because of __________ or __________ to which this insurance applies caused by an 'accident' and resulting from 'garage operations'" a) Premises or Fire Legal Liability b) Products or Completed Operations c) Personal or Advertising Injury d) Bodily Injury or Property Damage

d) Bodily Injury or Property Damage

The BAP policy includes all BUT which of the following "usage" categories: a) Retail b) Service c) Commercial d) Long-Haul

d) Long-Haul

In the BAP Comprehensive covered perils include: a) Inherent Vice b) Wear and Tear c) Both statements are correct d) Neither is correct

d) Neither is correct

Liability in the BAP is extended to all BUT which of the following? a) "Mobile equipment" while it is being carried or towed by a covered auto b) Trailers with a load capacity at or under 2,000 pounds c) Any temporary substitute auto d) Non-owned autos on a primary basis

d) Non-owned autos on a primary basis

Which of the following perils are covered in the BAP's Specified Causes of Loss coverage? a) Wear and Ter b) Electrical Breakdown c) Mechanical Breakdown d) None of these are correct

d) None of these are correct

Greg's Garage and Auto Emporium customarily services, repairs, stores, parks, and otherwise attends customer's automobiles in the normal course and scope of their operations. What symbol must be used to ensure the insurance company will "pay those sums that the insured legally must pay"? a) Symbol 21 b) Symbol 23 c) Symbol 25 d) Symbol 30

d) Symbol 30

Janet's Garage is replacing all four tires on a customer's truck. The customer has tripped over an air hose in garage parking lot and broken his nose. How will the Garage Policy respond? a) The Garage Policy will respond to liability associated with garage operations less a $100 deductible b) The Garage Policy will respond to liability associated with garage operations less a $250 deductible c) The Garage Policy will respond to liability associated with garage operations less a $500 deductible d) The Garage Policy will respond to liability associated with garage operations (no deductible applies)

d) The Garage Policy will respond to liability associated with garage operations (no deductible applies)

Klassic Kars, your Garage Policy insured, has Section III Garagekeeps on a Direct Coverage - Excess Basis. A Klassic Kars customer had their windshield and windows smashed out while being stored on the Klassic Kar's premises. How will the policy respond? a) The Garage policy will pay for 100% of the loss on a first party basis less any applicable deductible on a primary basis without regard to the insured's legal liability or the owners physical damage coverage b) The Garage policy excludes property in the insured's care, custody, or control c) The Garage policy will pay less a $100 liability deductible for work performed by the insured d) The Garage policy will pay for the loss on an excess basis after the owner's insurance has been applied and exhausted

d) The Garage policy will pay for the loss on an excess basis after the owner's insurance has been applied and exhausted