AINS Ch. 8 Quiz Questions
Which one of the following statements about the appraisal condition in Section IV of the Business Auto Coverage Form (BACF) is true? Select one: A. It applies to both liability and physical damage losses. B. It may lead to a binding settlement, even if the appraisers for the named insured and the insurer cannot agree. C. It applies primarily when there are disagreements about whether there is coverage for a particular loss D. It provides for the appraisal costs to be paid as a supplementary payment that has no effect on policy limits.
B. It may lead to a binding settlement, even if the appraisers for the named insured and the insurer cannot agree
Sullivan Construction Company (SCC) is an excavation contractor specializing in digging foundations for homes. It has five dump trucks, each of which is fitted with a tow hitch. Each vehicle tows a trailer used to move excavation equipment to and from job sites as well as to haul dirt. SCC's president, Bill Sullivan, drives a sport utility vehicle owned and insured by SCC. The company has one outside salesman and 10 construction employees, all of whom drive their own vehicles to work and on company business. SCC's equipment includes four backhoes used to dig building foundations and one bulldozer. Among other insurance, SCC has an unendorsed Business Auto Coverage Form (BAC). SCC uses symbols on its BAC to custom-tailor coverage to fit its needs. Which one of the following vehicle types would be eligible for coverage under Symbol 3—owned private passenger autos only?
Bill Sullivan's car - a sport utility vehicle *Because Bill is the named insured
Bob, an employee of Tank's Trucks, is backing one of Tank's trucks toward the loading dock on the insured premises. Bob accidentally strikes Alice, another employee, while she is directing Bob toward the loading dock. Alice sues Bob for her injuries. Which one of the following correctly indicates whether Bob is covered under Tank's unendorsed Business Auto Coverage Form (BACF) for liability coverage?
Bob is not covered because fellow employees' suits are excluded
Which one of the following statements about uninsured motorists insurance coverage in most states is true? Select one: A. It excludes injuries caused by a hit-and-run driver. B. It covers injuries caused by motorists who have liability insurance but for an amount less than the insured's limit for underinsured motorists coverage. C. It is applicable only to bodily injury. D. It is a third-party type of coverage.
C. It is applicable only to bodily injury
In applying for the Business Auto Coverage Form (BACF), the insured mistakenly listed the age of one of its drivers as 28 instead of 22. Which one of the following correctly indicates whether coverage would be void if that driver were involved in an accident?
Coverage would apply because the misrepresentation was not intentional
Which one of the following statements about the general conditions under Section IV of the Business Auto Coverage Form is true? Select one: A. The coverage territory is worldwide for autos rented with a driver. B. Bankruptcy of an insured relieves the insurer of any obligations under the form to that insured. C. The premium shown in the declarations is the minimum amount the named insured will pay during the policy period. D. Coverage for trailers follows the autos to which they are attached.
D. Coverage for trailers follows the autos to which they are attached
Which one of the following statements regarding liability coverage under the Business Auto Coverage Form (BACF) is true? Select one: A. The coverage form defines "suit" to include a civil proceeding but not other alternative dispute resolution proceedings. B. Covered pollution cost or expense is paid in addition to the stated limit of liability. C. The costs of defending the claim are subject only to the limits of insurance carried on the policy. D. The insurer must defend against even false or fraudulent claims or suits as long as they allege covered damages.
D. The insurer must defend against even false or fraudulent claims or suits as long as they allege covered damages
The Business Auto Coverage Form (BACF) includes provisions for all of these in addition to the basic physical damage coverages, EXCEPT: - Towing and labor - Electronic equipment - Transportation expenses - Loss of us of rental autos
Electronic equipment
Under the Auto Medical Payments Coverage endorsement to the business auto policy, "occupying" a covered auto means
Entering into, riding in, or alighting from a covered auto
Tom's CD player was stolen from the front seat of his van while he was making a service call for a customer. Under the Business Auto Coverage Form (BACF), this loss is
Excluded
What does the liberalization condition do?
It indicates that if the insurer charges the form with additional coverage at no additional premium, the new form would apply to the insureds policy as soon as the form was approved
Acme Insurance cannot agree with insured Jill Jenkins on the amount of a covered physical damage loss under Jill's Business Auto Coverage Form (BACF). Jill requested an appraisal. Acme and Jill each appoint an appraiser, and the appraisers appointed an umpire. One appraiser and the umpire ruled for Jill and against Acme. Which one of the following statements regarding this scenario is true?
Jill and Acme must each pay their own appraiser and will share the cost of the umpire
If an insured has failed to cooperate with an insurer in the settlement of a claim, which one of the following policy conditions prevents the insured from suing the insurer if the insured is not satisfied with the insurer's handling of the claim?
Legal Action Against the Insurer
Lime Green Paper Company owns three cars and a pickup truck. Lime Green's sales employees use their own vehicles for business. Lime Green is insured under a Business Auto Coverage Form (BACF) form with symbol 1—Any Auto for liability coverage and symbol 2—Owned Autos Only for physical damage and medical payments coverages. One of Lime Green's employees caused an accident while driving his own car on company business, damaging another auto and injuring the driver and two passengers. Lime Green's employee was injured in the accident, and his car was damaged. Which one of the following correctly indicates the coverage that Lime Green's BACF provides for this loss?
Liability coverage for the damage to the other auto and injuries to the other driver and passengers
The primary rating factors depend on all of the following EXCEPT: - Size class - Use of the vehicle - Radius of operation - Original cost new
Original cost new
Symbol 3 entered for a coverage under the Business Auto Coverage Form indicates that coverage is provided only for
Owned private passenger autos
The Auto Medical Payments Coverage endorsement to the business auto policy provides coverage for
Reasonable and necessary medical and funeral expenses incurred by a person injured while occupying a covered auto
Under the Business Auto Coverage Form (BACF), collision is generally understood to mean
Striking together with violent impact
Smith Company owns 2 cars, 2 trucks, and 2 large dump trucks. What Business Auto Coverage Form symbols would be used to provide the best protection for Smith? A. Symbol 1 for each desired coverage indicated B. Symbol 2 for each desired coverage indicated C. Symbol 1 for liability; symbol 2 for medical payments and UM D. Symbol 2 for liability; symbol 1 for medical payments and UM
Symbol 1 for liability; symbol 2 for medical payments and uninsured motorists (UM)
Which one of the following would be the most appropriate symbol to show on the schedule of coverages and covered autos of the Business Auto Coverage Form (BACF) if the insured wants to cover only autos owned at policy inception and any others that might be acquired later?
Symbol 2 - Owned Autos Only *Covers only owned autos including those that are acquired during the policy period
Which one of the following correctly indicates the three Business Auto Coverage Form (BACF) symbols that combined are equivalent to symbol 1?
Symbol 2 - Owned Autos Only Symbol 8 - Hired Autos Only Symbol 9 - Nonowned Autos Only
Sullivan Construction Company (SCC) is an excavation contractor specializing in digging foundations for homes. It has five dump trucks, each of which is fitted with a tow hitch. Each vehicle tows a trailer used to move excavation equipment to and from job sites as well as to haul dirt. SCC's president, Bill Sullivan, drives a sport utility vehicle owned and insured by SCC. The company has one outside salesman and 10 construction employees, all of whom drive their own vehicles to work and on company business. SCC's equipment includes four backhoes used to dig building foundations and one bulldozer. Among other insurance, SCC has an unendorsed Business Auto Coverage Form (BAC). Which one of the following auto symbols should SCC select for physical damage coverage under its BAC?
Symbol 2 - Owned autos only Why?? Cause employees use their own cars too
Which one of the following symbols is normally entered only on the personal injury protection (PIP) line of the declarations of the Business Auto Coverage Form?
Symbol 5 - Owned Autos Subject to No-Fault
Which one of the following symbols used in the Business Auto Coverage Form (BACF) is correctly described? Select one: A. Symbol 1—Owned Autos Only B. Symbol 2—Owned Private Passenger Autos Only C. Symbol 7—Hired Autos Only D. Symbol 9—Nonowned Autos Only
Symbol 9 - Nonowned Autos Only
A named insured's employee rents an auto while on a business trip and is involved in an accident. Which one of the following symbols on the business auto policy would provide coverage for the named insured?
Symbol 9 - Nonowned Autos Only *It is Symbol 9 and NOT Symbol 8 (Hired Autos Only) because the auto was not rented by the named insured
Three employees of a hardware store damaged a tile floor while moving concrete pavers from their delivery truck to an outdoor patio shop. Many of the pavers were also damaged during the move. How will the hardware store's Business Auto Coverage Form apply to this loss?
The Business Auto Coverage Form will cover only the property liability for the damage to the tile floor *Damage to the pavers is not covered because of the care, custody, or control exclusion
Johnson Construction Company (JCC) will be able to insure a bulldozer using its business auto coverage form (BACF) only when
The bulldozer is subject to motor vehicle or financial responsibility laws
Joan has a Business Auto Coverage Form (BACF). Which one of the following losses would be covered as auto physical damage?
The cost to repair vehicle damage that results from hitting a deer
In determining commercial auto base premiums for zone rated autos, insurers consider the vehicle's cost new, the type of vehicle, the chosen deductible, the geographical zone, and
The current age of the vehicle
Robert, a single father of two, owns a painting business. While driving his insured van on the job, Robert is involved in a serious accident and spends several days in the hospital. Robert incurs the following expenses. $4,000 Lost wages$6,000 Payment for a nanny to watch his two children$5,000 Cost to replace the painting equipment he was hauling$30,000 Medical bills Assuming Robert has adequate limits and a typical personal injury protection (PIP) endorsement to his Business Auto Coverage Form, how much of the above will be paid by Robert's auto insurer?
$40,000 *Includes: - lost wages - payment for a nanny - medical bills *NOT included: - cost of lost equipment (would be a property damage claim)
Zelda has an automobile accident that is covered by a Business Auto Coverage Form. The accident results in a pollution expense due to gasoline spilling from the covered auto, as well as property damage and bodily injury to a third party. The cost for the bodily injury is $1,000 along with $2,000 property damage. The pollution clean-up cost is $5,000. Ignoring any deductible that may apply, how much will Zelda's insurer pay for these losses?
$8,000 *All losses are covered
Black and White Bakery (BWB) owns a private passenger vehicle and two vans, which are insured under an unendorsed Business Auto Coverage Form (BACF) with a $500,000 limit of insurance for liability coverage. James, a BWB employee, was driving his own vehicle to meet with a customer to discuss a large wedding that BWB was catering. His vehicle is insured under a Personal Auto Policy (PAP) with a $100,000 limit of insurance for liability coverage. On his way to the meeting James went through a stop sign and struck another vehicle, seriously injuring the driver. The other driver made a claim against James and BWB for $60,000 in bodily injury to himself and damage to his vehicle. The investigation determined that James was responsible for the accident. BWB was also liable because James was driving his vehicle in the course of employment for BWB at the time of the accident. How much, if any, will BWB's auto insurer pay for this accident?
$0 *BWB won't pay anything cause the vehicle is owned by James
An insured keeps his truck in a garage. A deer gets trapped in the garage and, in an attempt to escape, climbs on top of the truck, breaking the windshield and causing several dents in the hood. The insured's Business Auto Coverage Form (BACF) provides physical damage coverage for specified causes of loss with a $100 deductible and collision with a $250 deductible. It will cost the insured $750 to replace the broken windshield and $1,200 to repair the dents. How much, if anything, will the business auto insurer pay for this loss?
$0 *Cause specified cause covered causes of loss does not include damage caused by animals
Jill, who is the named insured on an unendorsed Business Auto Coverage Form (BACF), hired Jimmy to assist in her business. Jill asked Jimmy to purchase some business supplies. While he was driving his own car, Jimmy's vehicle was hit by an uninsured motorist. Jimmy's medical expenses were $2,000, and the damage to his car was $4,000. Which one of the following correctly indicates how much Jill's auto insurer will pay Jimmy for his losses?
$0 *The employees is not insured if the covered auto is owned by the employee
Ajax Corporation (Ajax) is insured under a Business Auto Coverage Form (BACF) with a $300,000 liability limit. An Ajax employee is involved in an accident while using his own truck to move property belonging to Ajax. The employee's personal auto policy has a $500,000 liability limit. If $600,000 in damages is awarded because of the accident, Ajax's BACF insurer would pay
$100,000 *Excess of the personal limit of $500,000
Joe has a Business Auto Coverage Form with a $100,000 policy limit. In a claim that results in an $80,000 court award along with $50,000 for expenses due to defending the claim, what is the total amount that will be paid under Joe's Business Auto Coverage Form?
$130,000 *Defense costs are payable in addition to the policy limit
The insured is a sole proprietor who owns a business auto insured by a Business Auto Coverage Form with a personal injury protection (PIP) endorsement. While driving the car, she was in an accident in which the following losses were incurred: $2,000 housekeeper for one month $3,000 physical therapy and rehabilitation $4,000 damage to the covered auto $10,000 hospital bills $20,000 pain and suffering Assuming adequate limits and that no other insurance policies apply, how much can she recover pursuant to the PIP endorsement?
$15,000 *Includes: - housekeeper - PT and rehab - hospital bills *NOT included: - pain and suffering - auto physical damage
Allen, a sole proprietor, is crossing the street when he is struck by a passing uninsured auto. He sustains $2,500 in medical bills, $3,000 damage to the laptop he was carrying, and $1,000 in lost wages. Allen's business auto policy has $100,000 liability limit and $5,000 medical payments limit. Assuming there is no other coverage, how much will his business auto policy pay?
$2,500 *Medical payments coverage will pay for medical bills *Uninsured motorist ins would be needed to loss wages and potentially the damaged laptop
Alice has the use of a company car insured with a Business Auto Coverage Form with one endorsement, for uninsured motorists (UM) coverage. Alice was in an accident while driving the car and sustained the following losses: $ 200 - housekeeper for one day $ 300 - physical therapy and rehabilitation $ 400 - lost wages $1,000 - hospital bills $2,000 - pain and suffering The other driver was at fault but had no insurance. Assuming that no other insurance applies, how much can Alice collect under her employer's UM coverage?
$3,900 *All losses are covered under uninsured motorist coverage
The insured has a Business Auto Coverage Form (BACF). When the insured's truck was destroyed in a fire, the insurer offered him $20,000 for the loss. The insured valued his loss at $35,000. Each party selected an appraiser, and the two appraisers chose an umpire. The insured's appraiser came up with a value of $30,000, while the insurer's appraiser came up with a value of $24,000. The umpire agreed with the insured's appraiser. The fee for the insured's appraiser was $750, the insurer's appraiser was $950, and the umpire was $600. The total cost to the insurance company for this loss is
$31,250 *$950 (cost of insurer's appraiser) $300 (split cost of umpire) $30,000 (decided on value)
Robert has a Business Auto Coverage Form (BACF) with limits of liability of $500,000. A claimant is suing Robert for $1,000,000 because of an accident involving one of Robert's trucks. Before a jury can render a judgment, Robert files for bankruptcy. If the jury subsequently finds in favor of the claimant for $1,000,000, the insurer will pay
$500,000 *Insurer will still pay, but only up to its limit
Artful Ways is covered by two primary business auto policies. Policy A has a $100,000 limit and Policy B has a $300,000 limit. The organization experienced an $80,000 covered loss. Under the other insurance provision of Artful's Business Auto Coverage Form (BACF), how much will be contributed under Policy B?
$60,000 80,000 * (3/4) = 60,000
For commercial auto insurance, a truck, tractor, or trailer is non-zone rated if it is
A light truck operating over any distance
Johnny's Contracting Service has a Business Auto Coverage Form (BAC) covering his vehicles. He also has a Commercial Package Policy (CPP) covering his equipment. Which one of the following would be covered under Johnny's BAC?
A truck used for hauling dirt from jobsites
Mitchell is a highway contractor whose company is covered with a workers compensation policy and an unendorsed Business Auto Coverage Form (BACF). Which one of the following losses would be covered by his business auto policy?
An employee runs over a subcontractor's equipment with an owned auto
Physical damage and liability premiums are calculated for zone rated vehicles by doing which one of the following?
Applying the primary factor to base premiums *Whereas non-zone rated multiplies base premiums by combined factors
The ISO Business Auto Coverage Form uses symbols to identify which autos are covered under the policy. Which one of the following would be covered under Symbol 9—Non-Owned Autos Only?
Autos owned by the named insured's employees while being used in the named insured's business
Which one of the following losses would be covered by the Auto Medical Payments Coverage endorsement to the business auto policy? Select one: A. The insured is injured when his pickup falls on him as he is changing a tire. B. The insured is injured when he trips and falls exiting a covered auto. C. The insured is struck by a bicyclist while walking alongside the road. D. An employee of the insured is struck by an auto while driving one of the insured's autos.
B. The insured in injured when he trips and falls exiting a covered auto
One of the conditions in the Business Auto Coverage Form addresses physical damage losses where the named insured and the insurer disagree about the amount of a covered loss. Which one of the following statements concerning those conditions is most accurate?
Both the named insured and the insurer hire and pay their own appraisers and then share the cost of hiring an umpire
An animal damaged the interior of an insured's automobile while it was parked with the windows down. Which one of the following types of physical damage coverage under the Business Auto Coverage Form (BACF) would cover this loss?
Comprehensive *Comprehensive coverage applies to any peril except collision or overturn or a peril specifically excluded
Which one of the following statements about the loss conditions in Section IV of the Business Auto Coverage Form (BACF) is true? Select one: A. The named insured may begin legal actions against the insurer before complying with all provisions of the coverage form. B. Under certain circumstances, the named insured can commit the insurer to make payments for damages. C. If the insurer pays a loss, the named insured can waive the insurer's right of recovery against a negligent third party who caused the loss. D. Anyone seeking coverage under the form must submit to physical examinations by physicians as often as the insurer may reasonably request.
D. Anyone seeking coverage under the form must submit to physical exams by physicians as often as the insurer may reasonably request
Which one of the following sets of information is used in private passenger auto premium calculations for commercial auto physical damage? Select one: A. Condition and age of the vehicle B. Age and gender of the driver C. Insurance limit and type of coverage D. The vehicle's original cost new and the rating territory
D. The vehicle's original cost new and the rating territory *Physical damage rating uses the vehicle's cost new, rating territory, and the deductible amount chosen
Sullivan Construction Company (SCC) is an excavation contractor specializing in digging foundations for homes. It has five dump trucks, each of which is fitted with a tow hitch. Among other insurance, SCC has an unendorsed Business Auto Coverage Form (BAC). Which one of the following claims would be covered for liability under SCC's BAC? A. Damage to a fire hydrant caused by the bulldozer while it was in operation B. Damage to a parked car caused by the bulldozer while the bulldozer was being towed C. Damage to an underground water line caused by a backhoe while it was in operation D. Damage to the sport utility vehicle, which struck a deer while Bill was driving home from work
Damage to a parked car caused by the bulldozer while the bulldozer was being towed
Which one of the following property loss exposures can a business most likely avoid by leasing an auto instead of buying it?
Decrease in or loss of the auto's value
In some no-fault states, the noneconomic loss threshold is expressed in terms of a dollar amount of damages resulting from the injury. In other states, the threshold is expressed as a
Definition of serious injury
The specified causes of loss coverage of the business auto policy includes coverage for which one of the following?
Derailment of a conveyance transporting the insured vehicle
The business auto policy condition that states that the insured must cooperate with the insurer in its investigation and defense of the accident or loss is the
Duties in the Event of Accident, Claim, Suit, or Loss Condition
Bilo Manufacturing is weighing whether to lease vehicles for its employees or have them drive their own autos while on company business. Which one of the following exposures is created if Bilo decides in favor of employee-owned autos?
Employer's Nonownership Liability
Big Corporation leases automobiles for its employees to drive on business. In addition, a few employees use their own cars in performing their job duties. Which one of the following automobile loss exposures exists for Big Corporation?
Employers nonownership liability loss exposure
On January 1, an insurance company decides to increase its supplementary payments for lost earnings under a coverage extension for liability coverage from $250 a day to $500 a day, without increasing premiums. The change is to be effective on February 1. Allen's Business Auto Coverage Form (BACF) renews on May 1. The change will affect Allen's policy on
February 1 *When the change is effective
Automobile liability exposures can result from: A. Demand to or destruction of an owned vehicle B. Work comp laws C. Hiring or borrowing an automobile D. Loss of use of an owned automobile
Hiring or borrowing an automobile
Which one of the following would qualify as an uninsured motorist pursuant to a UM endorsement on a business auto policy?
Hit-and-run driver
One of the conditions found in the Business Auto Coverage Form addresses the bankruptcy or insolvency of the named insured. Which one of the following statements about claims settlement in the event of bankruptcy of the insured is most accurate?
If the insured is relieved through bankruptcy of an obligation to pay a liability claim, the insurer is still obligated to pay the loss
Kenneth, the named insured under a Business Auto Coverage Form (BACF) with symbol 1 shown for liability coverage, causes an automobile accident while driving a rental car on a business trip. Which one of the following correctly indicates whether Kenneth is covered under the liability insuring agreement of his BACF for this accident?
Kenneth is covered because Kenneth, the named insured, is an insured for any auto
One of the general conditions in Section IV of the Business Auto Coverage Form (BACF) states that if the insurer revises the form to provide more coverage without additional premium charge, the policy will automatically provide the additional coverage as of the date the revision is effective in the named insured's state. This condition is referred to as
Liberalization
Matthew Jones, the named insured under a Business Auto Coverage Form (BACF), requires his employees to use their own cars for business purposes. One of Matthew's employees, Paul, causes an accident while driving his own truck for the business. Matthew's BACF shows symbol 1 for liability coverage. Which one of the following correctly indicates whether Mathew is an insured under the policy for Paul's use of his own truck in this situation?
Matthew is an insured under the policy because Matthew is an insured for any auto
Matthew Jones, the named insured under a Business Auto Coverage form (BACF), requires his employees to use their own cars for business purposes. One of Matthew's employees, Paul, causes an accident while driving his own truck for the business. Matthew's BACF shows symbol 3 for liability coverage. Which one of the following correctly indicates why Matthew is not an insured under the policy for Paul's use of his own truck in this situation?
Matthew is covered for owned private passenger autos only
Matthew Jones, the named insured under an unendorsed Business Auto Coverage Form (BACF), requires his employees to use their own cars for business purposes. One of Matthew's employees, Paul, causes an accident while driving his own truck for the business. Matthew's BACF shows symbol 1 for liability coverage. Which one of the following correctly indicates whether Paul is an insured under the policy for the accident?
Paul is not covered because employees are not insured while using their own autos in the named insured's business
Commercial auto liability premium tables list premiums for private passenger autos by rating territory and by
Policy limit
Premiums for private passenger autos insured under a business auto policy are obtained directly from which one of the following?
Private passenger premium tables
Joe Motors is an automobile repair shop. Which one of the following would be the best way for the owner to maintain the goodwill of its customers?
Purchasing garagekeepers insurance
Which one of the following is used when determining a vehicle's primary factor for commercial auto insurance? Select one: A. Gross revenue for the auto business B. Radius class C. Payroll for covered drivers D. Driver safety record
Radius class *The primary factors are radius class, size class, and business use
Baker Company's salesperson negligently injures a pedestrian while driving a Baker Company vehicle on a sales call. Under which one of the following legal doctrines could the pedestrian hold Baker Company responsible for injury caused by the negligence of its employee?
Respondeat superior
The rule of placing liability on an employer for the acts of an employee is best known as
Respondeat superior
Which one of the following symbols in the Business Auto Coverage Form (BACF) indicates personal injury protection (PIP) coverage is provided for those autos that are required by law to have it? Select one: A. Symbol 3—Owned Private Passenger Autos Only B. Symbol 4—Owned Autos Other Than Private Passenger Autos C. Symbol 5—Owned Autos Subject to No-Fault D. Symbol 6—Owned Autos Subject to a Compulsory Uninsured Motorists Law
Symbol 5 - Owned Autos Subject to No-Fault
Wilson was driving his business auto when it was struck by a hit-and-run driver. He looked to his business auto policy for coverage for his injuries. Which one of the following symbols shown on his policy automatically provides such coverage?
Symbol 6 - Owned Autos Subject to a Compulsory Uninsured Motorists Law
Which one of the following coverage symbols in the ISO Business Auto Coverage Form requires that the insured notify the insurer within 30 days of newly acquired autos in order for those autos to have coverage under the policy? A. Symbol 3—Owned Private Passenger Auto Only B. Symbol 2—Owned Autos Only C. Symbol 7—Specifically Described Autos D. Symbol 8—Hired Autos Only
Symbol 7 - Specifically Described Autos *Symbol 7 requires that the insured notify the insurer within 30 days of newly acquired autos in order for those autos to have coverage under the policy
Which one of the following Business Auto Coverage Form (BACF) symbols requires that the insured notify the insurance company within 30 days of acquiring a new auto of the same type already insured for coverage to apply?
Symbol 7 - Specifically Described Autos *Symbols 1-6 and 19 automatically over newly acquired autos of the same types without the need for the insured to report them to the insurance company. Symbol 7 requires such notice.
The Albert Corporation wishes to provide liability coverage for owned and nonowned autos, but not for hired autos. Under Albert's Business Auto Coverage Form, which symbol or symbols should be used for liability coverage?
Symbols 2 and 9 *Symbol 2 provides coverage for owned autos, and Symbol 9 provides coverage for nonowned autos
Symbol 6 is often used for the uninsured motorists (UM) coverage of the Business Auto Coverage Form. This means which one of the following?
The UM coverage is provided only for autos that are required by law to have UM coverage
Which one of the following losses would be covered by the Business Auto Coverage Form (BACF)? A. The insured has to pay an employee's medical bills because of an accident involving one of the insured's vehicles. B. Computers the insured has delivered are damaged by rain after the insured leaves them in an open area following delivery. C. The insured has agreed to pay for liability losses caused by the insured's negligence that a shipper may incur while the insured is hauling goods for the shipper. D. Part of a load of plasma TV screens is damaged when the insured's truck stops suddenly and the TVs slide in the back of the truck.
The insured has agreed to pay for liability losses caused by the insured's negligence that a shipper may incur while the insured is hauling goods for the shipper
Which one of the following is true regarding the application of symbols under the Business Auto Coverage (BAC) Form?
The symbols indicate the autos to which each coverage applies
All of the following are supplementary payments under the Business Auto Coverage Form, Except: - All expenses incurred by the insurer - Work comp expenses - All reasonable expenses incurred by the insured at the insurer's request - All court costs taxed against the insured in any suit against the insured defended by the insurer
Work comp expenses
The methodology for rating trucks, tractors, and trailers depends on whether the vehicle must be
Zone rated or not
