Commercial Auto

Question 1

Which of the following sections of a Business Auto policy contains the “Definitions” of the policy?

Answer Choices: Select the Correct Answer
Section I.
Section II.
Section IV.
Section V.

Answer 1

Section V. is correct.

EXPLANATION:
Section V of the Business Auto policy contains the “Definitions” section of the policy.

Question 2

Which of the following would be covered under Business Auto Symbol 7?

Answer Choices: Select the Correct Answer
Hired autos only.
Non-owned autos.
Specifically described auto only.
Any auto.

Answer 2

Specifically described auto only. is correct.

EXPLANATION:
The purpose of Symbol 7 on Commercial Auto policies is to cover only specifically described vehicles as opposed to covering any vehicle. This occurs when an insurer may agree to cover all of the owner’s vehicles except certain types. A vehicle used to transport pollutants or explosives is an example.

Question 3

Business Auto

Which Symbols allow the insured to purchase liability coverage, physical damage coverage, or both?

Answer 3

Symbols 1 through 5

Question 4

Business Auto

Which Symbols provide only liability coverage; no physical damage
coverage can be purchased with these symbols.

Answer 4

Symbols 6, 7, 8, 9 and 19

Question 5

Mary’s Maids, Inc. wants to cover a fleet of sedans used by the maids to travel to the homes they are servicing. Which of the following symbols would most likely be scheduled on the Declarations page of Mary’s a Business Auto form?

Answer Choices: Select the Correct Answer
Symbol 1.
Symbol 2.
Symbol 3.
Symbol 4.

Answer 5

Symbol 3. is correct.

EXPLANATION:
Symbol 3 would be used as a fleet of private passenger vehicles owned by the named insured would be covered.

Question 6

Symbol 1

Answer 6

Symbol 1 - Any Auto: This symbol provides the broadest coverage because it
has no limitations or restrictions on the type of auto that is covered . If the
veh icle is an “auto”, as defined by t his cove rage fo rm, it is covered subject to
certa in exclusions and cond it ions. The broad scope of coverage provided with
Symbo l 1 is the reason t hat many insu rance companies use it cautiously, and
may use it on ly to cover liability, and not physical da mage.

Question 7

Symbol 2

Answer 7

Symbol 2 - Owned Autos Only: Th is symbol is used to cover any auto that is
owned by the named insu red. When Symbol 2 is used, any owned or nonowned
t raile r be ing pu lled by an owned veh icle is a lso cove red, but only for
liability. Any non-owned t ra iler must be attached to owned power units (the
owned veh icle) for cove rage to app ly.

Question 8

Symbol 3

Answer 8

Symbol 3 - Owned Private Passenger Autos Only: This symbol is used to cover any
private passenger auto that is owned by the named insu red . This symbol might be used
if the insurer is wi lling to cover a fl eet of private passenger autos but does not want to
assume the liability of any larger veh icles that the insured may acquire after the
inception date of the policy.

Question 9

Symbol 4

Answer 9

Symbol 4 - Owned Autos Other Than Private Passenger Autos: This symbol is used to
cover any auto, other than a private passenger auto, that is owned by the named
insured. Owned and non-owned tra ilers are also covered, for liability only, if they are
attached to power units (the owned veh icle) that are owned.

Question 10

Symbol 5

Answer 10

Symbol 5 * Owned Autos Subject to No-Fault (Personal Injury Protection) Benefits: This
symbol applies to vehicles licensed or garaged in a state where no-fault coverage is
available, but on ly to autos required to have such coverage.

Question 11

Jerusha has her business automobiles covered under a Business Auto policy in a state that does not have a no-fault law. She has purchased a new business van recently but was not required under her policy provisions to report her newly acquired auto. Based on this information, which of the following BAP symbol is listed on the Declarations page of Jerusha’s policy?

Answer Choices: Select the Correct Answer
Symbol 1.
Symbol 7.
Symbol 5.
Symbol 3.

Answer 11

The correct answer is: Symbol 1.

EXPLANATION:
When Symbol 1 is listed on the Declarations page, the insured is not required to report “newly acquired autos” to the insurer. This is because Symbol 1 covers “any auto”. Symbol 7 used for specifically described autos and we know Jerusha did not specifically describe her new van to the insurer. Symbol 5 is used in states where there IS a no-fault law. Symbol 3 is used for owned private passenger autos, which would not apply to Jerusha’s new van.

Question 12

Which of the following businesses can cover their private passenger and commercial automobile exposures with a Business Auto policy?

Answer Choices: Select the Correct Answer
An auto dealership.
A trucking company.
A grocery store.
A motor carrier company that delivers cargo.

Answer 12

A grocery store. is correct.

EXPLANATION:
The grocery store is the only type of business listed in the answer choices that can be covered by the Business Auto policy.

Question 13

An insured has her business automobiles covered under a Business Auto policy with Symbol 7 specified on her Declarations page. She has purchased a trailer with a load capacity of 2,500 pounds and hitched it to a covered van. While she is driving the van, the trailer breaks free and crashes into another vehicle, causing bodily injury. Which of the following statements is true regarding this insured’s situation?

Answer Choices: Select the Correct Answer
Liability coverage is extended under Symbol 7 for a trailer with a load capacity of less than 5,000 pounds, therefore coverage will apply.
Liability coverage is not extended under Symbol 7 for a trailer with a load capacity of more than 2,000 pounds, therefore coverage will not apply.
Liability coverage is excluded for all trailers under the Business Auto Coverage form.
Liability coverage will not apply for the trailer, but coverage for the van will pay the damages awarded under the lawsuit.

Answer 13

Liability coverage is not extended under Symbol 7 for a trailer with a load capacity of more than 2,000 pounds, therefore coverage will not apply. is correct.

EXPLANATION:
Liability coverage is not extended under Symbol 7 for a trailer with a load capacity of more than 2,000 pounds, therefore coverage will not apply because the load capacity of the trailer in the question is listed at a load capacity of 2,500 pounds.

Question 14

Which of the following Business Auto symbols would permit the insured to purchase both liability coverage and physical damage coverage?

Answer Choices: Select the Correct Answer
Symbol 2.
Symbol 6.
Symbol 9.
Symbol 19.

Answer 14

Symbol 2. is correct.

EXPLANATION:
Symbol 2 is the only symbol listed in the answer choices (there ARE others that were NOT listed in the answer choices) that permits the insured to purchase both liability coverage and physical damage coverage.

Question 15

Uninsured motorist coverage and medical payments coverage under a Business Automobile policy:

Answer Choices: Select the Correct Answer
Are not covered by the policy unless added by endorsement.
Are covered by Section IV of the policy.
Are covered by the policy but only for Symbols 1 through 5.
Are covered by Section II of the policy.

Answer 15

The correct answer is: Are not covered by the policy unless added by endorsement.

EXPLANATION:
Uninsured motorist coverage and medical payments coverage under a Business Automobile policy are not covered by the policy unless added by endorsement.

Question 16

Which of the following is NOT a Commercial Automobile form that may be added to a Commercial Package policy?

Answer Choices: Select the Correct Answer
Motor Carrier.
Garage.
Truckers.
Commercial Vehicle.

Answer 16

The correct answer is: Commercial Vehicle.

EXPLANATION:
“Commercial Vehicle” is not one of the 5 Commercial Auto forms that can be added to a Commercial Package policy.

Question 17

Symbols listed on the Declarations page of a Business Auto policy represent:

I. The type of vehicle covered.
II. The vehicle use classification.
III. The ownership status of the vehicle.
IV. The territory where the coverage will apply.

Answer Choices: Select the Correct Answer
I and II only.
I, II, III, and IV.
II and III only.
I and III only.

Answer 17

The correct answer is: I and III only.

EXPLANATION:
The symbols listed on the Declarations page of a Business Auto policy represent the type of vehicle being covered by that symbol and the ownership status of the vehicle.

Question 18

A road construction contractor has mobile equipment that is used in his business. The state has changed the law and now requires some of the equipment to carry liability insurance to comply with the financial responsibility laws of the state. What symbol will the insurance company use to add these items to the insured’s commercial auto policy?

Answer Choices: Select the Correct Answer
Symbol 1.
Symbols 8 and 9.
Symbol 7.
Symbol 19.

Answer 18

Symbol 19. is correct.

EXPLANATION:
The insurance company will use Symbol 19, “mobile equipment subject to compulsory auto financial responsibility.”

Question 19

Symbol 19

Answer 19

Symbol 19 - Mobile Equipment Subject to Compulsory Auto Financial
Responsibility Requirements:
This symbol is applied to land
vehicles that are considered
mobile equipment unde r the
definition of mobile equipment.
This symbol extends the BAP to
cover mobile equipment but
only in those states where such
equipment is subject to
registration and/or licensing
Jaws.

Question 20

Under a Business Auto policy, which coverage symbol indicates that a car is subject to mandatory no-fault insurance as required by state law?

Answer Choices: Select the Correct Answer
5
9
7
2

Answer 20

5 is correct.

EXPLANATION:
Symbol #5 of the Business Auto policy covers vehicles subject to their state no-fault insurance laws.

Question 21

Symbol 6

Answer 21

Symbol 6 - Owned Autos Subject to Compulsory Uninsured Motorist Law: This
symbol applies to any auto owned by the named insured, that is licensed or
garaged in a state that requires insureds to carry uninsured motorist coverage.
Please note that th is symbol does not app ly to vehicles licensed or operated in
states that a llow the named insured to forma lly reject uninsured motorist
cove rage.

Question 22

Which of the following would be covered under the “supplementary payments” of Section II - Liability of a Business Auto policy?

Answer Choices: Select the Correct Answer
All post-judgment interest in a suit defended by the insurer.
Payment for an insured employee’s truck being used by the employee on a business-related trip.
Costs for a private investigator hired by an employee to prove he was not involved in a hit and run accident of which he has been accused.
Up to $2,000 for the cost of bail bonds for an employee involved in an accident while he was on a trip to Mexico that he won for exceeding sales goals set by the company.

Answer 22

All post-judgment interest in a suit defended by the insurer. is correct.

EXPLANATION:
Supplementary payments do not include physical damages, nor personal expenses of employees. The bail bonds would ordinarily be covered, except the incident occurred in Mexico which is outside the coverage area.

Question 23

The coverage territory of the Business Auto form provides for “worldwide liability coverage” for private passenger autos that the insured:

Answer Choices: Select the Correct Answer
Hires, leases, rents or borrows without a driver while outside the United States, its territories and possessions.
Purchases while outside the United States, its territories and possessions.
Sells while outside the United States, its territories and possessions.
Occupies while outside the United States, its territories and possessions.

Answer 23

Hires, leases, rents or borrows without a driver while outside the United States, its territories and possessions. is correct.

EXPLANATION:
World-wide liability coverage is provided for a period of 30 days for autos the insured hires, leases, rents or borrows without a driver. The insured’s liability is determined in a settlement agreed to by the insurer, or in a suit filed in the United States or its territories, possessions, Puerto Rico or Canada.

Question 24

Which of the following is NOT excluded by Section II - Liability of the Business Automobile policy?

Answer Choices: Select the Correct Answer
Cost to defend the insured.
Work-related injuries to employees.
Intentional injuries caused by the insured.
Damage to property owned by the insured.

Answer 24

Cost to defend the insured. is correct.

EXPLANATION:
Defense costs are covered by the policy, they are not excluded.

Question 25

Lawrence’s business is covered by a Business Auto policy and carries the required liability limit for his state of $30,000 for bodily injury to all persons. Lawrence drives the truck to another state where the financial responsibility limit is $50,000 for bodily injury to all persons. While in the other state, Lawrence has an at-fault accident and injures 3 people who sue for $60,000 in total damages. How much will Lawrence’s Business Auto policy pay on this claim?

Answer Choices: Select the Correct Answer
$30,000.
$60,000.
$20,000.
$50,000.

Answer 25

The correct answer is: $50,000.

EXPLANATION:
Lawrence’s policy will automatically pay the financial responsibility limit for the state in which Lawrence was driving, which would be $50,000. Lawrence would have to pay the remaining $10,000 out of pocket. This is due to the coverage extension that modify’s the policy’s liability coverage limit to meet another states’ minimum required limits when the covered auto is being driven in that state.

Question 26

Which of the following would be “an insured” under a Business Auto policy?

Answer Choices: Select the Correct Answer
The owner of an automobile the named insured has borrowed.
An employee of the named insured while driving his or her own auto to conduct business on behalf of the insured.
Any person who is driving a covered auto owned by the named insured after receiving permission.
The named insured while driving an auto that is not listed as a covered auto on the Business Auto policy.

Answer 26

Any person who is driving a covered auto owned by the named insured after receiving permission. is correct.

EXPLANATION:
The only person that would be covered is: “Any person who is driving a covered auto owned by the named insured after receiving permission.”

Question 27

In which of the following situations would Section II of the Business Auto policy provide coverage?

Answer Choices: Select the Correct Answer
Injury incurred by the insured’s employee while working.
Damage to property in the insured’s care, custody, or control.
Liability of the insured assumed under a “sidetrack agreement”.
Bodily injury resulting from the insured’s operation of a cherry picker.

Answer 27

Liability of the insured assumed under a “sidetrack agreement”. is correct.

EXPLANATION:
Liability of the insured assumed under a “sidetrack agreement” IS covered.

Question 28

The exclusions of Section II of the Business Auto policy are found in:

Answer Choices: Select the Correct Answer
Part B.
Part D.
Part A.
Part C.

Answer 28

The correct answer is: Part B.

EXPLANATION:
Part B of Section II of the Business Auto policy covers the exclusions to this section of the policy.

Question 29

Section II of the Business Auto policy form contains three parts:

Answer 29

Part A:
o The Insuring Agreement;
o “Who Is An Insured?”; and
o Coverage Extensions & Supplementary Payments
Part B - Exclusions; and
Part C - Limit of Insurance

Question 30

Section II of the Business Auto policy provides the details of the insurer’s “duty to defend” the insured in a lawsuit. This duty is more broad than the insurer’s responsibility to pay any damages for which the insured is liable. Which of the following describes this broadened duty on the BAP?

Answer Choices: Select the Correct Answer
The BAP “duty to defend” extends to providing a defense for the insured against punitive damages imposed by a court.
The “duty to defend” section of the BAP extends to providing a defense for a negligent driver who did not have permission to use the covered auto.
The BAP “duty to defend” extends to providing a defense against fraudulent claims.
The “duty to defend” section of the BAP extends to providing a defense to a negligent driver who is a family member of an employee did not have permission to use the covered auto.

Answer 30

The BAP “duty to defend” extends to providing a defense against fraudulent claims. is correct.

EXPLANATION:
The “duty to defend” under the BAP policy extends to providing a defense for the insured against claims that are fraudulent.

Question 31

Which of the following statements is TRUE regarding “diminution in value” coverage under Section III of the Business Auto policy?

Answer Choices: Select the Correct Answer
This is the amount a covered auto that is new will depreciate immediately following its purchase.
This is the actual cash value of the vehicle paid to the insured following the covered vehicle being totaled.
Coverage for “diminution in value” is provided under Section III if the insured selects a limit and schedules it on the form.
Coverage for “diminution in value” is not provided under Section III because it is an indirect loss.

Answer 31

Coverage for “diminution in value” is not provided under Section III because it is an indirect loss. is correct.

EXPLANATION:
The only TRUE statement in the answer choices is: “Coverage for “diminution in value” is not provided under Section III because it is an indirect loss.”

Question 32

An insured has purchased BAP physical damage coverage against specified causes of loss. Protection applies to all of the following perils, EXCEPT:

Answer Choices: Select the Correct Answer
Theft.
Fire.
Falling objects.
Vandalism.

Answer 32

The correct answer is: Falling objects.

EXPLANATION:
This is named peril coverage (specified causes of loss) and is not nearly as broad as comprehensive coverage. This coverage form names the perils that will be covered and falling objects is not a named peril. Comprehensive covers anything other than collision.

Question 33

Loza’s automobile, covered by a Business Auto policy, was stolen. Temporary transportation expenses will be paid beginning:

Answer Choices: Select the Correct Answer
24 hours after the theft.
7 days after the theft.
48 hours after the theft.
36 hours after the theft.

Answer 33

48 hours after the theft. is correct.

EXPLANATION:
The transportation expenses will be paid (for theft of a vehicle covered by a BAP) beginning 48 hours after the theft.

Question 34

Each of the following is a comprehensive loss under the physical damage coverage of a Business Auto policy, EXCEPT:

Answer Choices: Select the Correct Answer
Damage to a covered auto caused by hail during a thunderstorm.
Damage caused when the auto overturned on a sharp curve.
Damage to the auto caused by flood waters.
Damage caused when vandals spray-painted graffiti on the auto.

Answer 34

The correct answer is: Damage caused when the auto overturned on a sharp curve.

EXPLANATION:
Damage caused by overturn is considered to be a “collision” claim. The other three answer choices are all “comprehensive” or “other than collision” losses.

Question 35

Under a Business Auto policy, which of the following types of physical damage loss is not covered?

Answer Choices: Select the Correct Answer
Collision with an animal.
Loss to radar detection equipment.
Transportation expenses following theft of an entire private passenger auto.
Glass breakage caused by vandals.

Answer 35

Loss to radar detection equipment. is correct.

EXPLANATION:
This type of equipment is usually excluded for physical damage coverage because it is normally not legal in most states to use them.

Question 36

Under the “Other Insurance” clause of a Business Auto policy, which of the following statements is TRUE?

Answer Choices: Select the Correct Answer
The BAP provides primary coverage for owned autos and excess insurance for non-owned autos.
The BAP provides primary coverage for owned autos and no coverage for non-owned autos.
The BAP provides primary coverage for owned autos and non-owned autos.
The BAP provides excess coverage for owned autos and non-owned autos.

Answer 36

The BAP provides primary coverage for owned autos and excess insurance for non-owned autos. is correct.

EXPLANATION:
The answer choice that is TRUE of the “Other Insurance” clause of a BAP is: “The BAP provides primary coverage for owned autos and excess insurance for non-owned autos.”

Question 37

All of the following are additional duties of an insured after a physical damage loss claimed under a Business Auto policy, EXCEPT:

Answer Choices: Select the Correct Answer
Notifying the police immediately if the automobile or any of its covered equipment is stolen.
Taking reasonable steps to protect the auto from further damage.
Allowing the insurer to inspect the damaged auto before it is repaired.
Taking a damaged vehicle to a repair shop immediately to have an estimate of the damage made.

Answer 37

Taking a damaged vehicle to a repair shop immediately to have an estimate of the damage made. is correct.

EXPLANATION:
Taking a damaged vehicle to a repair shop immediately to have an estimate of the damage made is NOT a duty of the insured when a physical damage loss occurs and is covered by a Business Auto policy.

Question 38

All of the following are included in the definition of “auto” under the Business Auto policy, EXCEPT:

Answer Choices: Select the Correct Answer
A motorcycle.
A tractor-trailer combination.
Mobile equipment.
A three-wheeler.

Answer 38

The correct answer is: Mobile equipment.

EXPLANATION:
“Mobile equipment” is specifically EXCLUDED from the definition of “auto” under the Business Auto form.

Question 39

Under the comprehensive coverage of a Business Auto policy, which of the following would not be a covered loss?

Answer Choices: Select the Correct Answer
After sliding on an icy pavement, a driver hits a guard rail.
Electrical wiring in the vehicle catches fire when the ignition is turned on.
All four tires are removed and a truck is put on blocks while it is parked over the weekend, even though there is no evidence of forcible entry into the company parking lot.
A vehicle has its tires slashed by an undetermined person.

Answer 39

The correct answer is: After sliding on an icy pavement, a driver hits a guard rail.

EXPLANATION:
Since the vehicle sustained damage by hitting the guard rail, it is considered a collision claim. This is because the definition of collision includes the upset of a vehicle, its impact with another vehicle or object; anything else would be other than collision and thus be covered by comprehensive coverage.

Question 40

The Loss of Use coverage extension of Section III of a Business Auto policy will pay a maximum of:

Answer Choices: Select the Correct Answer
$700.
$800.
$900.
$1,000.

Answer 40

$900. is correct.

EXPLANATION:
The Loss of Use coverage extension of Section III of a Business Auto policy will pay a maximum of $900.

Question 41

The BAP Section Ill - Physical Damage Coverages

Answer 41

The phy ical damage coverage of the Business Auto policy covers accidental direct physical damage to covered autos and their equipment, under three main coverages and a fourth coverage that may be selected by the insured. The three main coverages are:
1. Collision - Overturn of the covered vehicle or collision with another object.
2. Comprehensive - Any loss, other than collision or overturn, that is not otherwise
excluded.
3. Specified Causes of Loss - Is similar to comprehensive coverage but is more limited.
Specified perils are named perils that include the following: fire, lightning, explosion,
theft, windstorm, hail, earthquake, flood, mischief or vandalism, and the sinking,
burning, collision or derailment of a conveyance transporting the covered auto (such as a ship). Note that glass breakage and falling objects are not covered perils.
Insureds can select one of the above coverages or a combination of the coverages to best suit the needs of the business. This means the insured may cover some vehicles for specified causes of loss, and others for collision and comprehensive.

The fourth physical damage coverage that an insured may select under Section
Ill of the Business Auto policy is “Towing & Labor Coverage”. The coverage may
be selected to cover:
Private passenger automobiles;
Light trucks; and
Medium trucks.

Question 42

All of the following are “evidence of financial responsibility” as outlined in the California Insurance Code, EXCEPT:

Answer Choices: Select the Correct Answer
A certificate of self-insurance or the assignment of deposit letter issued by the Insurance Department.
An insurance form or certificate from an insurance company or charitable risk pool.
The title to the automobile issued by a financial institution.
An insurance “covering note” or “binder” that complies with the California Insurance Code.

Answer 42

The title to the automobile issued by a financial institution. is correct.

EXPLANATION:
The title to the automobile issued by a financial institution would only provide evidence that the driver is the owner of the vehicle. It would not provide evidence that the proper amount of insurance is carried to cover the vehicle.

Question 43

Every insurer that issues automobile policies in California must provide insureds with an “Auto Body Repair Consumer Bill of Rights”. This requirement applies to all of the following types of automobile policies, EXCEPT:

Answer Choices: Select the Correct Answer
Commercial automobile policies.
Private passenger automobile policies.
Motorcycle policies.
Motor carrier policies.

Answer 43

The correct answer is: Motor carrier policies.

EXPLANATION:
The requirement to provide insureds with an “Auto Body Repair Consumer Bill of Rights” does not apply to those covered as Motor Carriers.

Question 44

In California, the required minimum financial responsibility limit (until January 1st, 2025) for the bodily injury or death of one person resulting from one automobile accident is:

Answer Choices: Select the Correct Answer
$5,000.
$30,000.
$60,000.
$15,000.

Answer 44

The correct answer is: $15,000.

EXPLANATION:
In California, the required minimum financial responsibility limit (until January 1st, 2025) for the bodily injury or death of one person resulting from one automobile accident is $15,000.

Question 45

Which of the following is NOT considered to be “evidence of financial responsibility” under California Automobile laws?

Answer Choices: Select the Correct Answer
The identifying motor carrier of property permit number displayed on the vehicle as required by the Department of the California Highway Patrol.
The identifying number issued to a household goods carrier and displayed are required by the Public Utilities Commission.
The name of the insurance company and the number of the insurance policy provided that the same information is contained in the registration records of the Department.
The name and contact information of the named insured’s bank where he/she holds personal accounts.

Answer 45

The name and contact information of the named insured’s bank where he/she holds personal accounts. is correct.

EXPLANATION:
The answer choice that is NOT considered to be “evidence of financial responsibility” is: “The name and contact information of the named insured’s bank where he/she holds personal accounts.”

Question 46

The minimum limit for Medical Payments coverage on an automobile liability policy in California is:

Answer Choices: Select the Correct Answer
$5,000.
$1,000.
$2,000.
$4,000.

Answer 46

The correct answer is: $2,000.

EXPLANATION:
The minimum limit for Medical Payments coverage on an automobile liability policy in California is $2,000.

Question 47

Callipso lives in California and elects to have UMC/UIM coverage included on her automobile policy. One evening she reads through her policy and sees that she is also covered to the maximum limit for Uninsured Motorist Property Damage. What is the limit for Callipso is covered for if her car is damaged by an uninsured motorist?

Answer Choices: Select the Correct Answer
$3,500.
$3,000.
$5,000.
$15,000.

Answer 47

The correct answer is: $3,500.

EXPLANATION:
The limit for UMPD coverage in California is $3,500 and is only payable if the uninsured driver is identified.

Question 48

In California, all drivers involved in an automobile accident must exchange all of the following information with the other driver, EXCEPT:

Answer Choices: Select the Correct Answer
Vehicle identification number (VIN).
Name of the bank holding title to the vehicle.
Driver’s license number.
Current residing address.

Answer 48

The correct answer is: Name of the bank holding title to the vehicle.

EXPLANATION:
Driver’s do not have to provide the name of the bank where the automobile was financed.

Question 49

Which of the following statements is TRUE regarding UMC/UIM coverage in California, EXCEPT:

Answer Choices: Select the Correct Answer
UMC/UIM coverage is mandatory in California.
UMC/UIM coverage can be rejected by insureds in California.
The coverage amount provided by the UMC/UIM coverage is the same amount selected as the limit of liability under the liability section of the auto policy.
UMC/UIM coverage in California includes Uninsured Motorist Property Damage (UMPD) coverage.

Answer 49

UMC/UIM coverage is mandatory in California. is correct.

EXPLANATION:
UMC/UIM coverage is NOT mandatory in California.