Commercial Auto Insurance & Miscellaneous Commercial Insurance

Question 1

Physical Damage Coverages

Answer 1

Collision
Other than Collision (aka comprehensive)
Specified causes of loss

Question 2

Other than Collision

Answer 2

covers any loss, other than collision or overturn, that is NOT excluded by the policy
o Glass breakage
o Hitting a bird or animal
o Falling objects

Question 3

Specified Causes of Loss

Answer 3

Fire
Lightning
Explosion
Theft
Windstorm
Hail
Earthquake
Flood
V&MM
Sinking, burning, collision or derailment of a conveyance transporting covered auto (ex - ship)

Question 4

Exclusions for Physical Damage

Answer 4

To sound reproducing and receiving equipment, tapes, and records
From wear and tear, freezing, mechanical or electrical breakdown, or road damage to tires
To covered autos while being used for, or while practicing or preparing for, organized or professional racing, demolition, or stunting activities

Question 5

Drive Other Car Coverage Endorsement

Answer 5

extends business auto coverage to nonowned vehicles operated by the person (or spouse) named in the endorsement. Coverage does NOT apply to autos owned by the person named in the endorsement or spouse

Question 6

Individual Named Insured

Answer 6

extends personal coverage to immediate family members of the named insured

Question 7

Other Endorsements

Answer 7

Medical payments, uninsured motorists, and underinsured motorists – provide coverage similar to that provided for personal auto coverage

Additional insured-lessor endorsement – considers leased vehicles to be owned vehicles for coverage purposes

Bobtail endorsement – provides coverage for non-trucking use when the truck-tractor is NOT being used to haul or carry a trailer for others

Mobile equipment endorsement – mobile equipment is considered a covered auto

Question 8

Types of Professional Liability Policies

Answer 8

Medical malpractice – is the term commonly applied to medical professional liability policies

Errors and omissions – is a broad term that refers to professional liability policies written for other professionals, such as insurance agents, accountants, architects, stockbrokers, engineers, attorneys, etc.

Fiduciary liability – protects those who manage private pension and employee benefit plans against liability for violation of the Employee Retirement Income Security Act of 1974 (ERISA) which governs employer-sponsored retirement plans

Directors and officers liability – type of errors and omission policy written for directors and officers of corporations who may be sued as individuals by stockholders

Consent to Settle Losses – most policies do NOT require the insured’s consent to settle a loss

Question 9

Employment Practices Liability Insurance

Answer 9

covers a company and its directors, officers, and current and former employees against claims or lawsuits regarding inappropriate workplace behavior. Here are some examples of actions that are covered by an EPL policy:
- Discrimination
- Harassment
- Failure to promote
- Retaliation
- Wrongful termination

Question 10

Aviation Liability Coverage

Answer 10

Legal liability to third parties (other than passengers)
Bodily injury to passengers
Property damage
Medical payments

Question 11

Aviation Physical Damage Coverage

Answer 11

it covers the complete aircraft, including its airframe, engines, controls, and electronic navigation and communications equipment. It does NOT cover personal effects. Either a fixed dollar or a percentage of the loss deductible usually applies. Declarations indicate what coverage applies and any special restrictions or deductibles. Coverage can be provided while the aircraft is:
o in the air or on the ground
o on the ground only
o not in motion under its own power