Commercial Auto Coverage

Question 1

The buisness auto coverage form covers all of the following, EXCEPT:

A) owned private passenger autos
B) mobile equipment registered to drive on public roads
C) automatic coverage for physical damage to trailers
D) automobiles owned by employees used for business purposes

Answer 1

C) automatic coverage for physical damage to trailers

Question 2

Which of the following is not a Symbol under Section I - Covered autos?

A) any auto
B) Specifically described on declarations
C) owned autos subject to no fault
D) dealer auto liability coverage

Answer 2

D) dealer auto liability coverage

Question 3

Which of the following is NOT an “insured” under the Business Auto coverage form?

A) Fellow employee
B) Named insured
C) Person using a borrowed auto with permission of the insured
D) Person liable for the conduct of the insured

Answer 3

A) Fellow employee

Question 4

What is the maximum the insurer will pay for a covered transportation expenses claim?

A) $200
B) $400
C) $600
D) $800

Answer 4

C) $600

Question 5

General conditions in the business auto policy apply to which of the following?

A) Appraisal
B) legal action against the insured
C) transfer of rights
D) bankruptcy

Answer 5

D) bankruptcy

Question 6

Which of the following is NOT one of the five symbol designations on the Business Auto Physical Damage coverage form?

A) Autos left for service
B) Owned autos only
C) Hired autos only
D) Specifically described autos

Answer 6

A) Autos left for service

Question 7

All of the following statements regarding a common carrier covered under the Truckers and Motor Carrier Coverage form are correct, EXCEPT:

A) A business individual that carries the general public from one place to another for a fee
B) A common carrier can also use the Motor Carrier Coverage Form
C) A common carrier must use the Trucker Coverage Form
D) A trucker that transports goods belonging to several customers at the same time

Answer 7

C) A common carrier must use the Trucker Coverage Form

Question 8

What coverage under the Motor Carrier Coverage form provides physical damage coverage for non-owned trailers and equipment in the event of an at-fault accident?

A) Other insurance clause
B) Truckers physical damage coverage
C) Trailer interchange coverage
D) Commercial truckers coverage

Answer 8

C) Trailer interchange coverage

Question 9

The passage of the Motor Carrier Act of 1980 resulted in all of the following, EXCEPT:

A) Deregulation of the trucking industry
B) Prohibition of rating bureaus to develop the rates
C) Mandatory minimum liability limits
D) Increase in truckers wages

Answer 9

D) Increase in truckers wages

Question 10

Which of the following is true about the individual named insured endorsement?

A) Protects the named insured who does not own a car
B) Applies to all resident family members
C) Adds business coverage to a personal private passenger auto
D) Coverage is provided only to those individuals listed on a schedule

Answer 10

B) Applies to all resident family members