Commercial Auto

earthmover

A Business Auto Policy may be used to cover each of the following EXCEPT: a. a truck. b. an earthmover. c. a tractor trailer. d. a pickup or van.

injury to a pedestrian struck by the insured business auto Damage to goods being transported would be covered by Inland Marine. The Business Auto policy excludes pollution issues, except it will cover cleanup of oil, diesel fuel, gasoline, or antifreeze which leaks from the insured auto's mechanical systems as a result of an accident. The driver would be covered by Work Comp. But, we will cover the pedestrian or anyone or anything hit by the covered auto.

A Business Auto policy covers: a. damage to goods of others being transported b. injury to a pedestrian struck by the insured business auto c. pollution damage caused by a vehicular accident d. injury to the driver of the business auto

traffic fines Government fines aren't covered by insurance policies, at least not the ones we are studying.

A business auto policy's supplementary payments covers each of the following EXCEPT: a. loss of earnings b. bail bonds c. interest on a judgment d. traffic fines

fines

A business or personal auto policy may cover each of the following EXCEPT: a. loss of earnings b. bail bonds c. fines d. judgment interest

liability

A driver's personal auto policy has liability limits of $15,000, $20,000, $10,000. A passenger in the car suffered $17,000 bodily injury when the vehicle hit a building. The passenger's bodily injuries are covered by: a. comprehensive b. collision c. liability d. physical damage

pollution caused by the leaking chemicals

A truck driver causes an accident which damages a car, injures the car's driver, and causes the truck to leak chemicals into the ground. The truck's business auto policy will NOT cover: a. damage to the truck b. bodily injury to the car's driver c. damage to the car d. pollution caused by the leaking chemicals

pays medical and funeral expenses for the insured and any passengers in the insured's auto

Auto med pay: a. pays regardless of coverages in other policies b. covers any pedestrians hit by the insured's auto c. is required by both federal and state law d. pays medical and funeral expenses for the insured and any passengers in the insured's auto

a delivery truck driven by the insured.

Collision coverage under a personal auto policy applies to each of the following EXCEPT: a. a delivery truck driven by the insured. b. a non-owned auto driven by the insured. c. a neighbor's auto or van borrowed by the insured. d. the insured's auto or van.

Uninsured Motorist

Molly's state requires 25/50/10 auto liability insurance. Molly is involved in an accident with an at-fault driver who only has 15/30/5 coverage. Molly is protected by her: a. uninsured motorist b. underinsured motorist

physical damage

State law requires that commercial autos be covered for each of the following EXCEPT: a. property damage liability b. physical damage c. bodily injury liability d. supplementary

ACV Physical Damage (Collision and Other Than Collision) pays for damage to the Insured's vehicle. It always pays on an ACV basis. If it paid on a Replacement Cost basis, some of us would figure out a way to have our vehicles damaged so we could get a new replacement. (Ok, my family members would - you are much too honest for that sort of foolishness.)

The Physical Damage section of the auto policy's collision coverage pays on what basis? a. replacement cost b. fair market value c. ACV d. stated or agreed value

company car available for the insured's regular use

The definition of "covered auto" in a personal auto policy does NOT include: a. a new van purchased last week b. a rental vacation car c. the insured's trailer d. a company car available for the insured's regular use

employee's vehicle

The primary purpose of "nonowned auto" coverage under a Business Auto policy is to cover an accident involving: a. a leased auto b. an employee's vehicle c. a temporary substitute d. a borrowed vehicle

Garage Keepers Coverage

Which section of the Garage Coverage Form covers an auto service station from damage they do to vehicles of others that are in their care, custody, and control? a. Physical Damage Coverage b. Property Damage Coverage c. Liability Coverage d. Garage Keepers Coverage

covered by comprehensive

While Jo was passing a truck, lumber fell from the truck onto Jo's auto. With reference to Jo's auto policy, this is: a. covered by comprehensive. b. not covered. c. covered without a deductible. d. covered by collision.

Nonpayment of premium Remember that the only reasons allowed in most states for cancellation by the Insurer are (1) Nonpayment of Premium, (2) Concealment or Misrepresentation, (3) Substantial increase in the risk, and, in some states, (4) Financial impairment of the Insurer.

After a business auto policy has been in effect for 60 days, it may be cancelled due to: a. claims filed b. the Insured's purchase of a new auto c. the Insured's sale of the business d. nonpayment of premium

authorize the insurer to settle within the policy limits. The Insurer doesn't need the consent of the Insured to settle. Remember, however, that this isn't true with an E&O (Professional Liability) Policy where consent of the Insured is needed before the Insurer can settle with the victim.

After an accident involving a covered business auto, the insured must do each of the following EXCEPT: a. authorize the insurer to settle within the policy limits. b. protect the vehicle from further damage. c. submit to examination under oath. d. notify the insurer and forward any summons to the insurer.

Insurer

After an auto accident, the auto policy requires the insured to notify the: a. police b. insurer

flood

Each of these is considered to be a Casualty Insurance coverage EXCEPT: a. commercial crime b. commercial auto c. flood d. liability