Unit 17
The limits of liability required by the Motor Carrier Act affect all vehicles that have a gross vehicles weight of
$10,000 punds or more
Howard is driving his company-owned truck in another state and causes an accident. The state that he is driving in a minimum of $30,000 liability coverage, and requires his policy has a limit of $20,000. Howard is sued to $55,000 in damages arising out of the accident. How much will his policy pay?
$30,000
Medical payments, Uninsured motorists, and uninsured motorists coverage
As we mentioned earlier, the insured may also add-by endorsement
Which of the following commercial auto coverage forms can be purchased by most business provide very broad coverage for losses arising from owned and non owned autos?
Business auto
A covered auto collided with another car and overturned causing a lot of damage. The auto is insured for collision and comprehensive coverages under the business auto coverage form. Which coverage would pay for this loss?
Collision
Which of the following perils is NOT included in the business auto coverage form's specified causes of loss coverage?
Collision
Symbol 30
Customers' auto left with the insured for service, repair, storage, or safekeeping.
Misha was involved in an auto accident in which three people were killed. When the accident occurred, she was driving a company car that she does not own. The victims' survivors file suit against Misha and her employee. Which of the following will provide coverage for Misha and her employer?
Drive other car endorsement
Which of the following coverage extensions is NOT provided by business auto physical damage coverage?
Electrical breakdown
Which commercial auto endorsement extends personal auto coverage to immediate family members of the named insured?
Individual named insured
All of the following are excluded under business auto liability EXCEPT
Liability for accidental and unintentional injuries
If insurance is used to establish proof of financial responsibility, the- must be attached to the policy
MCS-90 endorsement
Which of the following coverages is included in an unendorsed garage coverage form?
Physical Damage
Symbol 31
Physical damage coverage only for the dealers' autos, including owned autos for sale, and autos on consignment.
Which business auto coverage form symbol is the "any auto" symbol?
Symbol 1
Which Symbol covers a customer's auto left with the insures for service?
Symbol 30
If an insured wants collision coverage for any a few auto out of an entire fleet, which symbol would be use on the declarations?
Symbol 7
Which statement is NOT correct regarding the business auto coverage from conditions?
The business auto coverage form provides excess coverage for covered autos owned by the insured.
Supplementary payments
The liability section of the business auto coverage form will cover the following expenses the insurer incurs as-cost of bail bonds up to $2,000 for violations because of a covered accident, expenses the insured incurs at the insured's request including the insured's lost earnings up to $250 a day because of time off from work, court cost the insured is required to pay because of a suit, Interest that accrues offer a judgment and before its paid, All expenses incurred by the insurer.
Who of the following would NOT be considered an insured under business auto liability coverage?
The owner of a borrowed auto.
Which of the following losses would be paid. under the business auto coverage form's comprehensive coverage?
Theft of a covered auto
Which of the follow is NOT included in the business auto coverage form?
Uninsured motorist coverage
Truckers coverage form
a modified version of the business auto coverage from that takes into consideration the special practices and regulations that apply to the trucking industry.
Which of the following businesses would NOT be covered under a garaged coverage form?
catering company
Other insurance
condition states that the business auto coverage form
Trailer interchange insurance
covers damage to a specific trailer under the policy of the trucker in whose possession the trailer is at the time of loss.
Garagekeepers insurance
covers damage to customers' property that the insured has for servicing, repair, parking, or storage.
All of the following are exclusions in business auto liability coverage EXCEPT
defense costs
Drive other car-broadened coverage for named individuals endorsement
extends business auto coverage to non owned vehicles operated by the person named in the endorsement
Individual named insured endorsement
extends personal auto coverage to immediate family members of the named insured.
Motor carrier coverage
form is for business that transport their own goods and property, and may haul the goods of others.
Business Auto Coverage
form is used to insure the private passenger and commercial auto exposures of businesses other than garages, truckers, and motor carriers
Which portion of the garage coverage form covers liability for damage to property of others in the insured's car, custody, or control?
garagekeepers
Auto
is a land motor vehicle, trailer, or semitrailer, including any attached machinery or equipment, that is designed for travel on public roads; or subject to compulsory or financial responsibility laws or other motor vehicle laws.
Mobile equipment endorsement
is attached, mobile equipment is considered a covered auto.
Additional insured-lessor endorsement
leased vehicles can be considered owed vehicles for coverage purposes by attaching the-to the policy
Pollutants
means any solid, liquid, gaseous, or thermal irritant, or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste.
Bodily Injury
means bodily injury, sickness, or disease, including death resulting from any of these.
Which of the following is NOT included under the physical damage coverage portion of the business auto coverage form?
mechanical breakdown
The garage coverage form includes all of the following EXCEPT
medical payments
Out of State Coverage Extensions
modify the policy's liability coverage to meet other stats' financial responsibility requirements when the covered auto is being driven in that state.
Other insurance condition states that the business auto coverage form provides
primary coverage for covered autos owned by the insured.
Bobtail endorsement
provides coverage for non-trucking use when the truck-tractor is not being used to haul or carry a trailer for others.
Definitions
section of the business auto coverage form defines certain key terms used in the policy.
Motor Carrier Act of 1980
that require trucking companies to certify that they are able to meet financial obligations if they become liable for injury or damage arising from their trucking operations.
Symbol 48
trailers borrowed or leased by the named insured for which liability for loss has been assumed under a written trailer interchange agreement.
Symbol 49
trailers owned or hired by the named insured while the trailers are in someone else's possession under a written trailer interchange agreement.
Rachelle missed three days of work at her insurer's request. How much money will the supplementary payments form cover for Rachelle's lost earnings?
up to $250 a day
