Commercial Auto Coverage

Question 1

Commercial Auto insurance provides a number of coverage options to provide liability and physical damage coverage on autos used in a business. _______ and uninsured motorists coverages are typically only available by endorsement.

Answer 1

Auto Medical Payments

Question 2

Autos include land motor vehicles, trailers, and _______ designed for use on public roads, as well as any other vehicle subject to compulsory or financial responsibility laws.

Answer 2

semi traliers

Question 3

Autos also include self-propelled vehicles with permanently attached snow removal equipment, _______, air compressors, and generators.

Answer 3

cherry pickers

Question 4

Mobile equipment includes vehicles designed for use off public roads (like farm machinery), vehicles on crawler treads, and vehicles that provide mobility to _______, backhoes, and road construction equipment.

Answer 4

power cranes

Question 5

_______ is generally not covered by Commercial Auto insurance, unless subject to financial responsibility laws, being carried or towed by a covered auto, or by the Mobile Equipment Endorsement.

Answer 5

Mobile equipment

Question 6

The _______ is the primary auto policy for business that covers a number of autos depending on symbols indicated on the Business Auto Declarations page.

Answer 6

Business Auto Coverage Form

Question 7

_______ is for any auto used in the insured’s business, regardless of ownership.

Answer 7

symbol 1

Question 8

_______ is for owned autos only.

Answer 8

symbol 2

Question 9

Symbol 8 is for _______ only, meaning autos that the insured leases, hires, rents, or borrows.

Answer 9

hired autos

Question 10

Symbol 9 is for _______ only, meaning autos that the insured does not own, lease, hire, rent, or borrow, but that are used in the business, like employee’s autos.

Answer 10

non-owned autos

Question 11

The symbols are listed under _______ – Covered Autos.

Answer 11

section I

Question 12

_______ – Liability Coverage provides insurance for bodily injury or property damage for which the insured is legally responsible. The insurer has a duty to defend the insured.

Answer 12

Section I

Question 13

Section II: This part of the policy also provides _______, including up to $2,000 for the cost of bail bonds and up to $250 a day for loss of income due to assisting with the defense.

Answer 13

supplementary payments

Question 14

Insureds under Section II include the named insured for any covered auto; _______ using a covered owned, hired, or borrowed auto with permission; and anyone liable for the conduct of those insureds.

Answer 14

anyone else

Question 15

If the auto is owned by employees or their family members, the employee is not considered an insured unless added by the _______.

Answer 15

Employees as Insureds Endorsement

Question 16

Liability coverage exclusions include liability resulting from intended injury, organized racing activities, workplace injuries covered by _______, bodily injury to a fellow employee, and damage to property in the insured’s care.

Answer 16

Workers comp

Question 17

Bodily injury or property damage resulting from pollution is also excluded, except that some coverage is carved out for liability from pollutants needed for the _______, like fuel.

Answer 17

normal functioning of autos

Question 18

_______ – Physical Damage Coverage provides three coverage options for insureds.

Answer 18

Section III

Question 19

_______ coverage applies when a covered auto impacts anther object or is overturned.

Answer 19

Collision

Question 20

_______ coverage provides coverage for all perils except collision.

Answer 20

Comprehensive

Question 21

_______ coverage protects against named perils of fire, lightning, explosion, theft, windstorm or hail, earthquake, flood, mischief or vandalism, and burning or collision of a conveyance transporting the covered auto.

Answer 21

Specified causes of loss

Question 22

Separate _______ may be indicated for each coverage.

Answer 22

deductibles

Question 23

Physical damage coverages also provide coverage for towing and labor, at the place of disablement, each time a _______ is disabled.

loss of use

Answer 23

Private Passenger Auto

Question 24

Coverage extensions are provided for transportation expenses and _______ expenses.

Answer 24

Loss of use

Question 25

Transportation expenses begin _______ after the theft of a private passenger auto.

Answer 25

48 hrs

Question 26

Section III exclusions include war, racing, _______, wear and tear, mechanical or electrical breakdown, road damage to tires, and losses to electronic equipment that is not permanently installed in the vehicle.

Answer 26

freezing

Question 27

Coverage under Section III is also available as a separate policy, known as the _______.

Answer 27

Business Auto Physical Damage Coverage Form

Question 28

_______ – Conditions indicates a number of conditions that apply to most Commercial Auto policies.

Answer 28

Section IV

Question 29

In the event of a loss, the insured must give prompt notice of the loss, immediately send claim or suit papers to the insurer, and allow the insurer to _______ the covered auto before its repair.

Answer 29

inspect

Question 30

The insured’s concealment, misrepresentation, or fraud may _______ the policy.

Answer 30

void

Question 31

The insured’s concealment, misrepresentation, or fraud may _______ the policy.

Answer 31

primary

Question 32

BAP coverage is _______ for non-owned autos.

Answer 32

excess

Question 33

The _______ is designed to eliminate coverage gaps for auto dealerships that have customer’s autos in their care, custody, or control.

Answer 33

Auto Dealers (Garage) Coverage Form

Question 34

Section II – _______ offers liability coverage for Garage Operations – Other Than Autos for the premises, operations, and products liability of the business, as well as Garage Operations – Covered Autos for auto liability.

Answer 34

Liability Coverage

Question 35

Section III – _______ pays for physical damage to customers’ autos or equipment when in the care of the insured for servicing, repair, parking, or storing. This coverage is also available to other auto businesses, like repair shops, that have care and custody of customers’ autos.

Answer 35

Garagekeepers Coverage

Question 36

Collision, comprehensive, and specified causes of loss coverages are offered. Specified causes of loss include fire, lightning, explosion, _______, mischief, and vandalism.

Answer 36

theft

Question 37

Section IV – _______ offers the same physical damage coverage as the BAP for the named insured’s covered autos.

Answer 37

physical damage coverage

Question 38

The _______ is used for motor carriers and others who transport people and property.

Answer 38

Motor Carrier Coverage Form

Question 39

_______ provides coverage when the insured assumes liability for a loss to a trailer that the insured does not own, but has in their possession under a written agreement.

Answer 39

Trailer Interchange Coverage

Question 40

The _______ deregulated interstate trucking.

Answer 40

Motor Carrier Act of 1980

Question 41

Motor Carrier Act of 1980 also authorized the _______ to enforce financial requirements for motor carriers.

Answer 41

Department of transportation

Question 42

The _______ (Form MCS–90) provides proof of financial responsibility.

Answer 42

Endorsement for Motor Carrier Policies of Insurance for Public Liability

Question 43

The minimum per accident limit is _______, for the transportation of nonhazardous property.

Answer 43

$750,000

Question 44

The highest minimum per accident limit is _______, for the transportation of large quantities of hazardous substances.

Answer 44

$ 5M