Commercial Auto Coverage

Question 1

Business auto policy (bap)

Answer 1

The business auto coverage form, also called the business auto policy, is used to cover the autos owned by or used by a business, including owned, least, hired, rented, or borrow private passenger autos, trucks, trailers, and semi trailers.

Question 2

Section 1 - covered autos

The following 10 symbols designate what type of coverage is provided by the policy

Answer 2

Symbol 1 – all autos
Symbol 2 – owned autos only
Symbol 3 – owned private passenger autos only
Symbol 4 – owned autos other than the private passenger autos only
Symbol 5 – owned autos subject to no fault
Symbol 6- owned auto subject to a compulsory uninsured motorist law
Symbol 7 – specifically describe models – autos itemized in the declarations
Symbol 8 - hired autos only - only those autos the insured leases, hires, rents, or borrows, except any auto the insured leases, hires, rents, or borrows from an employee.
Symbol 9 – non-owned autos only – Only those autos the insured does not own, lease, higher, or borrow that are used in connection with the insureds business.
Symbol 19- Mobile equipment Decid subject compulsory or financial responsibility or other vehicle insurance law

Question 3

Section 2. - liability coverage

Answer 3

The section provides coverage for bodily injury or property damaged caused by an accident for which the insured is legally responsible

Question 4

Section 2. ( continued)

Answer 4

Supplementary payments
Includes claims expenses incurred by insurer, the cost of bail bonds, reasonable expenses incurred by insured and insurers request

Question 5

Section 3 - physical damage coverage

Answer 5

Comprehensive:open perils basis, collision excluded
Specified causes of loss :fire lighting theft windstorm etc
Collision: single named peril auto collides w object or overturns
Towing: paid for labor costs
Glass breakage: applies only if insured has comprehensive coverage

Question 6

Garage coverage form

Answer 6

The garage coverage form is designed to provide automobile liability/physical damage coverage, as well as general liability protection, for garage operations.
Garage operations means the ownership, maintenance, or use of locations for the purpose of a business engaged in cell, service, repair, parking, or storage of customers automobiles.

Question 7

Garage coverage

Answer 7

Damage to customers car in the care of insured is covered by garage keepers coverage section 3. Damage to uninsured auto would be covered by physical damage coverage section 4. Bodily injury or property damage resulting from business operations will be covered by liability coverage section 2. There’s no medical payment coverage in the unendorsed garage coverage form.

Question 8

Truckers coverage form

Answer 8

Insurance coverage for:
Common carriers(truckers)-May use either form
Contract carriers(motor carriers)-May only use the motor carrier coverage form

Question 9

Selected commercial auto endorsements

Answer 9

Auto medical payments coverage-coverage is written with a limit per person, per accident and pays up to limit for necessary medical/funeral expenses resulting from bodily injury incurred within three years of an accident
Uninsured motorist coverage-this endorsement allows the insured to purchase uninsured motorist coverage since the commercial auto forms not automatically includes coverage

Question 10

Selected commercial auto endorsements continued

Answer 10

 California individual named insured-this endorsement is used to add family coverage to business auto coverage form
Mobile equipment-this is an endorsement that allows mobile equipment such as bulldozers, forklifts, and road construction equipment to be insured as covered autos

Question 11

Selected commercial auto endorsements continued

Answer 11

Drive other car-broadened coverage for named individuals: this endorsement protects named individuals who do not own the car being used for business.

Question 12

Which 1980 regulation Deregulated the trucking industry

Answer 12

Motor carrier act

Question 13

A garage coverage form is advantageous for which of the following reasons?

Answer 13

It provides liability and physical damage coverage that is usually excluded from BAP and CGL policies

Question 14

Session one of truckers coverage form provides the option of adding which two symbols to commercial auto policy

Answer 14

47,48