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CAIB 3 > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

Our insured has $2 million tpl with the SPF44. She injured by a driver who only carries basic tpl. Your insured successfully sues the responsible party for $2.5 million. How much will each policy pay? From what policy will the insured recover, and how much?

A

Responsible drivers tpl $200,000
Our insureds SEF44 $1.8 million
The insured will need to collect the remaining $500,000 through further civil action

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2
Q

SEF 20

A

Loss of use

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3
Q

SEF 27

A

Damage to rental vehicle
Same perils as SPF 1
Certain vehicle types
Only name insured or spouse covered

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4
Q

Identify why a client would need an SEF20 Loss of Use Endorsement

A

SPF1 only provides loss of use by theft of the entire vehicle and for minimal limits

Increase the limits of coverage beyond $25-$30 per day

Expand the type of loss from only theft losses to all insured losses.

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5
Q

SEF4A

A

Explosives

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6
Q

SEF4B

A

Radioactives

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7
Q

SEF5

A

Long Term Leases

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8
Q

SEF5C

A

Short Term Lease under 30 days

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9
Q

SEF5D

A

Removes conversion exclusion

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10
Q

SPF4

A

Garage risks

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11
Q

Carrying passengers for compensation or hire. What is not excluded?

A

Carpool/sharing cost of trip
Carrying clients
Carrying domestic servants
Transporting children for school

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12
Q

SEF6A

A

Taxi and private bus

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13
Q

SEF6B

A

School bus

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14
Q

SEF6C

A

Public bus

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15
Q

SEF6D

A

Commercial driving school

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16
Q

If a client is renting an automobile on a short term basis (not in relation to a claim), what options do they have to cover physical damage on that rental?

A

Purchase coverage through the rental car company

Endorsement to SPF1 with SEF27 Legal Liability for damage to Non Owned vehicles

17
Q

Identify 5 conditions to the SEF27

A

Coverage is restricted to the insured and their spouse

Coverage is for the same perils as on the owned vehicle for which the endorsement is added

No more than one non owned auto may be used at any one time

Coverage is restricted to certain types of vehicles

Coverage for physical damage to the non owned vehicle is subject to a dollar limit specified in the endorsement

18
Q

SPF6

A

Liability for non owned vehicle added to CGL or sold separately

19
Q

SEF94

A

Adding physical damage to non owned vehicle

94 plus 6 equals 100 ** tip to remember

20
Q

SEF30

A

Exclude operation of attached machinery
Attached machinery covered by CGL

21
Q

SEF31

A

Non owned equipment
Insures liability arising from use of non owned equipment
May include physical damage

22
Q

SEF21B

A

Blanket Fleet
Allows all changes to vehicles to be reported at the end of term

23
Q

Identify 3 situations where a client would require coverage under the SPF6

A

Employees driving their own vehicles on behalf of the business
Vehicles that are hired or rented by the business
Vehicles operated under contract- hiring delivery services (contingent liability)

24
Q

What is the purpose of the SPF4

A

When operating a client’s vehicle, their SPF1 will not pay
Businesses require coverage while operating non owned vehicles as part of their business

25
Q

SPF 4
Who needs it

A

Business who sells vehicles, owned vehicles service loaners, shuttles, tow trucks, customer vehicles- moving to service bays, valet

26
Q

Sections on SPF4

A

A- tpl
B- accident benefits
C- Damage to own vehicles
E- Customer vehicles

27
Q

SEF74

A

Open lot pilferage

28
Q

Customer vehicle open lot pilferage

A

SEF75

29
Q

Customer vehicle to add comprehensive

A

SEF77

30
Q

What are 3 examples of owned vehicle covered by section A TPL of SPF4

A

Tow trucks
Service loaners
Shuttle bus
Vehicles held for sale

31
Q

When a SPF4 coverage on owned vehicles is insured on a monthly average basis, how are premiums determined?

A

Provisional premiums are charged based on clients estimated of maximum value of owned vehicles during the policy year

Insured are required to regularly report actual stock on hand

32
Q

SPF8

A

Standard Lessor’s Contingent Policy
- pays lessor if lessee does not maintain coverage

33
Q

SEF5D

A

Conversion coverage
- overrides Conversion exclusion under section c
- can be added to short or long term leases

34
Q

SEF4A

A

Grants permission for specified explosives

35
Q

SEF4B

A

Grants permission for specified radioactives

CAIB 3 (8 decks)

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