Commercial Auto Insurance Flashcards
__policy can be written as a monoline policy or can be included in the commercial package policy (CPP).
Commercial auto policy
The commercial auto policy can be written as a monoline policy or can be included in the commercial package policy (CPP). A commercial auto policy must contain the following elements:
■ Common policy declarations
■ Common policy conditions
■ One of five separate coverage forms: business auto, business auto physical damage, garage, truckers, or motor carrier
■ Appropriate declarations for coverage form selected
__is used to insure the private passenger and commercial auto exposures of all businesses other than garages (auto dealers, auto service businesses, etc.), truckers, and motor carriers (trucks hauling cargo). Because of the specialized nature of these businesses and their unique coverage needs, separate forms were designed to cover these risks.
Business auto coverage form
The business auto coverage form is used to insure the private passenger and commercial auto exposures of all businesses other than garages (auto dealers, auto service businesses, etc.), truckers, and motor carriers (trucks hauling cargo). Because of the specialized nature of these businesses and their unique coverage needs, separate forms were designed to cover these risks.
The business auto coverage form includes:
■ liability coverage; and
■ physical damage coverage (comprehensive, specified causes of loss, and collision).
Uninsured motorists, medical payment, and underinsured motorists coverage can be added by endorsement.
__is a land motor vehicle, trailer, or semitrailer, including any attached machinery or equipment, that is:
Auto
__means __, sickness, or disease, including death resulting from any of these. Property damage means damage to or loss of use of tangible property.
Bodily Injury
__means any solid, liquid, gaseous, or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned, or reclaimed.
Pollutants
Any auto the insured will use during the policy period, including autos that are owned, leased, hired, rented, or borrowed
Type of Auto Selected:
Symbol number::
Any auto Symbol 1
Any auto the insured owns
Type & Symbol:
Owned autos only
2
Any private passenger auto the insured owns
type and symbol:
Owned private passenger autos only
3
Other types of vehicles the insured owns, such as trucks, trailers, buses, and motorcycles
Type and symbol:
Owned autos other than private passenger autos only
4
Designates owned autos required to have no-fault benefits in a particular state
Type and symbol
owned autos subject to No-fault law
5
Designates owned autos required to have uninsured motorists coverage in a particular state
Type and symbol:
6 Owned autos subject to compulsory uninsured motorists law
Applies only to autos specifically listed in the business auto coverage form declarations
type and symbol:
7 Specifically described autos
- Only used for autos the insured has leased, hired, rented, or borrowed
- Does not include autos rented or borrowed from employees
type and symbol
8 Hired autos only
- Only used for autos used in the insured’s business that are not leased, hired, rented, or borrowed
- Includes autos owned by employees but used in the insured’s business or personal affairs
type of symbol
9 Nonowned autos only
Autos that would be considered mobile equipment if they were not subject to compulsory or financial responsibility laws or other motor vehicle laws
type or symbol:
19 Mobile equipment subject to motor vehicle laws only
note
With the exception of specifically described autos, autos acquired during the policy period are automatically covered. Coverage applies to newly acquired, specifically described autos based on several conditions. First, this coverage must be in place for existing autos with this symbol, or the new auto must replace an auto that was previously covered. Second, the insured must notify the insurer within
30 days after acquiring the new auto.
With the exception of specifically described autos, autos acquired during the policy period are automatically covered. Coverage applies to newly acquired, specifically described autos based on several conditions. First, this coverage must be in place for existing autos with this symbol, or the new auto must replace an auto that was previously covered. Second, the insured must notify the insurer within
30 days after acquiring the new auto.
NOTE
If the insured has liability coverage under the policy, the following vehicles are also covered autos for liability coverage:
Temporary substitute autos (borrowed, rented, or hired auto to replace a covered vehicle that is disabled)
■ Trailers with a load capacity of 2,000 pounds or less
■ Mobile equipment while it is being towed or carried by a covered auto
■ Temporary substitute autos (borrowed, rented, or hired auto to replace a covered vehicle that is disabled)
■ Trailers with a load capacity of 2,000 pounds or less
■ Mobile equipment while it is being towed or carried by a covered auto
In addition to the named insured, others have liability coverage while using a covered auto with permission. Employees are also considered an insured while driving a vehicle owned by the business or a vehicle for which the business is responsible.
Those who are not insureds include:
Those who are not insureds include:
■ a person who is working in an auto-type business; and
■ the owner of a hired or borrowed auto.
The __ in the business auto coverage form is similar to that provided by the personal auto policy. The policy will pay all sums (up to the limit) for bodily injury and property damage an insured legally must pay caused by a covered auto accident. Coverage for defense costs and supplementary payments is also included
liability coverage
Business auto liability coverage contains many of the same exclusions as personal auto liability coverage and some unique exclusions as well, including liability:
Commercial Auto Insurance
This Round
Overall
24.3%
MASTERY
Confidence Ratings New 34 1 2 2 7 3 0 4 9 5 3
Cards rated in Round: 1 / 10 Deck: Commercial Auto Insurance Card: 22 / 55 See all Cards in this Deck Q
Business auto liability coverage contains many of the same exclusions as personal auto liability coverage and some unique exclusions as well, including liability:
A
■ for expected or intended injuries;
■ assumed under contract or agreement (does not apply to liability the insured would have had if there were no contract or agreement or to contracts that meet the policy definition of an insured contract);
■ for work-related injuries to employees;
■ for damage to property owned by, transported by, or in the care, custody, or control of the insured;
■ for damage arising out of the movement of property by a mechanical device;
■ for bodily injury or property damage arising out of the operation of self-propelled vehicles with attached cherry pickers that are used to raise or lower workers, or that have permanently attached equipment, such as air compressors, pumps, and generators;
■ for pollution damage, except as specifically provided in the policy; and
■ for covered autos while being used for, or while practicing or preparing for, organized or professional racing, demolition, or stunting activities.
■ for expected or intended injuries;
■ assumed under contract or agreement (does not apply to liability the insured would have had if there were no contract or agreement or to contracts that meet the policy definition of an insured contract);
■ for work-related injuries to employees;
■ for damage to property owned by, transported by, or in the care, custody, or control of the insured;
■ for damage arising out of the movement of property by a mechanical device;
■ for bodily injury or property damage arising out of the operation of self-propelled vehicles with attached cherry pickers that are used to raise or lower workers, or that have permanently attached equipment, such as air compressors, pumps, and generators;
■ for pollution damage, except as specifically provided in the policy; and
■ for covered autos while being used for, or while practicing or preparing for, organized or professional racing, demolition, or stunting activities.