Commercial Auto Coverage Flashcards
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.
Auto Medical Payments
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.
semi traliers
Autos also include self-propelled vehicles with permanently attached snow removal equipment, _______, air compressors, and generators.
cherry pickers
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.
power cranes
_______ 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.
Mobile equipment
The _______ is the primary auto policy for business that covers a number of autos depending on symbols indicated on the Business Auto Declarations page.
Business Auto Coverage Form
_______ is for any auto used in the insured’s business, regardless of ownership.
symbol 1
_______ is for owned autos only.
symbol 2
Symbol 8 is for _______ only, meaning autos that the insured leases, hires, rents, or borrows.
hired autos
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.
non-owned autos
The symbols are listed under _______ – Covered Autos.
section I
_______ – 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.
Section I
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.
supplementary payments
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.
anyone else
If the auto is owned by employees or their family members, the employee is not considered an insured unless added by the _______.
Employees as Insureds Endorsement
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.
Workers comp
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.
normal functioning of autos
_______ – Physical Damage Coverage provides three coverage options for insureds.
Section III
_______ coverage applies when a covered auto impacts anther object or is overturned.
Collision
_______ coverage provides coverage for all perils except collision.
Comprehensive
_______ 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.
Specified causes of loss
Separate _______ may be indicated for each coverage.
deductibles
Physical damage coverages also provide coverage for towing and labor, at the place of disablement, each time a _______ is disabled.
loss of use
Private Passenger Auto
Coverage extensions are provided for transportation expenses and _______ expenses.
Loss of use
Transportation expenses begin _______ after the theft of a private passenger auto.
48 hrs
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.
freezing
Coverage under Section III is also available as a separate policy, known as the _______.
Business Auto Physical Damage Coverage Form
_______ – Conditions indicates a number of conditions that apply to most Commercial Auto policies.
Section IV
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.
inspect
The insured’s concealment, misrepresentation, or fraud may _______ the policy.
void
The insured’s concealment, misrepresentation, or fraud may _______ the policy.
primary
BAP coverage is _______ for non-owned autos.
excess
The _______ is designed to eliminate coverage gaps for auto dealerships that have customer’s autos in their care, custody, or control.
Auto Dealers (Garage) Coverage Form
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.
Liability Coverage
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.
Garagekeepers Coverage
Collision, comprehensive, and specified causes of loss coverages are offered. Specified causes of loss include fire, lightning, explosion, _______, mischief, and vandalism.
theft
Section IV – _______ offers the same physical damage coverage as the BAP for the named insured’s covered autos.
physical damage coverage
The _______ is used for motor carriers and others who transport people and property.
Motor Carrier Coverage Form
_______ 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.
Trailer Interchange Coverage
The _______ deregulated interstate trucking.
Motor Carrier Act of 1980
Motor Carrier Act of 1980 also authorized the _______ to enforce financial requirements for motor carriers.
Department of transportation
The _______ (Form MCS–90) provides proof of financial responsibility.
Endorsement for Motor Carrier Policies of Insurance for Public Liability
The minimum per accident limit is _______, for the transportation of nonhazardous property.
$750,000
The highest minimum per accident limit is _______, for the transportation of large quantities of hazardous substances.
$ 5M
