Quiz 7: Business Auto Coverage Form

The combination of the following three symbols: Symbol 2 - Owned Autos Only Symbol 8 - Hired Autos Only Symbol 9 - Nonowned Autos Only Is the equivalent of which one of the following symbols under the Business Auto Coverage Form? -Symbol 1 - Any Auto -Symbol 3 - Owned Private Passenger Autos -Symbol 4 - Owned Autos Other Than Private Passenger Autos Only -Symbol 5 - Owned Autos Subject to No-Fault

Symbol 1 - Any Auto

Which one of the following statements is correct regarding Section III - Physical Damage Coverage of the Business Auto Coverage Form (BACF)? -The overturn of a business auto would be covered by Specified Causes of Loss Coverage under the policy. -Substitute transportation costs are only covered if the insured auto is disabled due to a collision. -The covered vehicle overturned due to collision resulting in a shattered windshield. The only physical damage coverage carried by the insured is comprehensive coverage. The insurer will pay for the damaged windshield under the insured's comprehensive coverage. -Substitute transportation costs are only covered if the insured auto is disabled due to a collision

The covered vehicle overturned due to collision resulting in a shattered windshield. The only physical damage coverage carried by the insured is comprehensive coverage. The insurer will pay for the damaged windshield under the insured's comprehensive coverage.

Very Good Building & Development Company (VGBDC) is covered under a business auto policy with a $250,000 limit. Donna, an employee of VGBDC, has a personal auto policy with a limit of $100,000. She was driving her own car on company business when she had an accident. The accident resulted in $250,000 of covered damages. Of this amount, VGBDC's business auto policy would pay: -$0 -$100,000 -$150,000 -$250,000

$150,000

Sally, who is insured under a Business Auto Coverage Form (BACF) in the state of Florida, was driving the covered auto in Georgia. Sally's BACF has bodily injury liability coverage of $20,000 per person, per occurrence. Georgia requires a $25,000 of bodily injury liability coverage per person, per occurrence. If Sally has an at-fault accident in Georgia which results in $40,000 in bodily injuries to a single individual, how much would be covered under Sally's BACF? -20,000 -25,000 -40,000

25,000

XYZ Company is covered under two business auto policies, each one providing primary coverage with the following limits: Policy 1 - $200,000 limit Policy 2 - $50,000 limit If XYZ Company incurs a $60,000 covered loss, how much will be covered under Policy 1 under the Other Insurance provision of the Business Auto Coverage Form? -$12,000 -$15,000 -$45,000 -$48,000

$48,000

Which coverage form replaced the Garage Coverage Form in 2013? -Truckers coverage form -Motor carrier coverage form -Auto dealers coverage form -Covered autos liability coverage form

Auto dealers coverage form

Which one of the following statements is correct regarding the liability coverage under a Business Auto Coverage Form (BACF)? -Separate coverage limits apply for bodily injury, property damage, and pollution costs. -Coverage is excluded for any liability under workers compensation laws. -Supplementary payments reduce the limit of insurance under the form. -The insurer is only required to defend the insured against legitimate claims or suits.

Coverage is excluded for any liability under workers compensation laws.

In the liability coverage agreement of the business auto policy, the insurer has all of the following duties, EXCEPT: -Duty to pay covered pollution costs/expenses -Duty to pay covered bodily injury and property damage expenses -Duty to defend the insured -Duty to pay up to $2500 for bail bond costs

Duty to pay up to $2500 for bail bond costs

Coverage for damage to a customer's auto being serviced by the insured while in the insured's care is referred to as: -Motor carrier coverage -Bailee's coverage -Garagekeepers coverage -Covered autos liability coverage

Garagekeepers coverage

Which one of the following statements is correct regarding conditions contained in the Business Auto Coverage Form? -The Duties in the Event of Loss condition prevents the named insured from bringing action against the insurer if the insured has failed to comply with the policy provisions. -The Transfer of Rights Against Others condition states that the insured must cooperate with the insurer in its investigation and defense of the loss. -The Liberalization condition indicates that coverage will be void if the named insured commits a fraud related to the coverage. -The Bankruptcy condition states that the bankruptcy or insolvency of the insured will not relieve the insurer of any of its obligations under the policy.

The Bankruptcy condition states that the bankruptcy or insolvency of the insured will not relieve the insurer of any of its obligations under the policy.