Commercial Auto Test Flashcards
Which of the following coverages is(are) automatically included in the Business Auto coverage form?
Liability
Uninsured motorists
Medical payments
Liability, physical damage, and medical payments
The business auto coverage form includes liability and physical damage coverage.
Uninsured motorists, medical payments, and underinsured motorists coverage must be added by endorsement.
In the business auto coverage form, mobile equipment is
covered under liability coverage when it is being towed or carried by a covered auto
covered under Physical Damage coverage when it is being towed or carried by a covered auto
included in the policy’s definition of auto and is covered under both liability and physical damage coverage
not covered under any circumstances
In general, mobile equipment is not included in the policy’s definition of auto.
An exception is made under the policy’s liability coverage when mobile equipment is being towed or carried by a covered auto.
Which of the following coverages are included in the garage coverage form? Assume there are no endorsements attached to the policy. Underinsured motorists Trailer interchange Garagekeepers Medical payments
The Garage coverage form includes liability, garagekeepers, and physical damage coverage.
Medical payments, uninsured motorist, and underinsured motorists coverage is added by endorsement. Trailer interchange coverage is not used with the garage coverage form.
The insured’s liability for damage to customers’ autos in the insured’s custody is covered under
the garagekeepers section of the garage coverage form
both the liability and physical damage sections of the garage coverage form
the liability section of the garage coverage form
the physical damage section of the garage coverage form
The liability section of the garage coverage form excludes liability for damage to customers’ autos in the insured’s custody.
Coverage for this exposure is provided under the garagekeepers section of the garage form.
Which one of these statements concerning business auto liability coverage is NOT correct?
It covers only sums for which the insured is legally liable.
It does not cover pollution losses.
It covers BI or PD caused by an accident.
The BI or PD must result from the ownership, maintenance, or use of a covered auto.
This coverage pays all sums an insured legally must pay as a covered pollution cost or expense to which the policy applies as long as certain conditions are met.
Damage to a trailer the insured borrows or hires from another trucking business for use in his or her own business is
covered under the liability coverage of the truckers coverage form
covered under the business auto coverage form
excluded under the truckers coverage form
covered under the trailer interchange coverage of the truckers coverage form as long as certain conditions are met
Truckers frequently need to borrow or hire a trailer from another trucking business for use in their own business. Damage to such property is covered under the trailer interchange coverage of the truckers form.
A trucker is eligible for coverage under
either the truckers coverage form or the motor carrier coverage form
the truckers coverage form, the motor carrier coverage form and the business auto coverage form
the truckers coverage form only
the motor carrier coverage form only
A motor carrier is anyone who transports property by auto in a commercial enterprise. This broad definition includes truckers, which means truckers may be covered under the truckers coverage form or the motor carrier coverage form.
All of the following would be considered an insured under business auto liability coverage when using a covered auto with permission EXCEPT
others while using a covered auto with permission
a person working in an auto-type business
others who become liable for the conduct of an insured
the named insured
Individuals working in auto-type businesses are not considered insureds for liability coverage when using a covered auto with permission.
Which of the following losses would be paid under the business auto coverage form’s comprehensive coverage?
Gradual corrosion of the grillwork on a covered auto due to continuous exposure to salt air
Overturn of a covered auto
Collision damage to a covered auto
Theft of a covered auto
Theft of a covered auto
Losses from wear and tear are excluded. The other two losses are considered collision losses.
Which of the following perils is included in the business auto coverage form's specified causes of loss coverage? Falling objects Mechanical breakdown Earthquake Collision
Specified causes of loss coverage is a limited type of comprehensive coverage. It covers fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, vandalism or mischief, and sinking, burning, collision, or derailment of a conveyance transporting the covered auto.
All of the following coverages are available under the business auto coverage form's physical damage section EXCEPT garagekeepers coverage towing and labor costs coverage transportation expenses coverage collision coverage
The physical damage portion of the business auto coverage form contains three principal coverages:
comprehensive, specified causes of loss (a more limited type of comprehensive coverage) and collision.
Coverage for towing and labor costs and transportation expenses is also available under physical damage coverage.
Garagekeepers insurance is not included in the business auto coverage form.
Which of the following is covered under business auto liability coverage?
Damage to the insured’s own auto
Liability for property in the insured’s custody
Liability assumed under a contract that is considered an insured contract
Injury to employees covered under workers compensation laws
The exclusion for liability assumed under contract or agreement does not apply to contracts that meet the policy’s definition of an insured contract.
Which portion of the garage coverage form covers liability for damage to property of others in the insured’s care, custody or control? Garagekeepers Physical damage Both liability and garagekeepers Liability
The liability section of the garage coverage form excludes liability for damage to customers’ autos in the insured’s custody.
Coverage for this exposure is provided under the garagekeepers section of the garage form.
Which of the following can be covered under a motor carrier coverage form?
Motor carriers
Both of these
Truckers
A motor carrier is anyone who transports property by auto in a commercial enterprise, regardless of whether the individual was hired for that purpose.
Since this broad definition encompasses truckers, those who are eligible for coverage under the truckers coverage form could also be covered under the motor carrier coverage form.
However, those who are eligible for coverage under the motor carrier form can only be covered under the truckers form if they transport goods for others by hire.
Which commercial auto endorsement extends personal auto coverage to immediate family members of the named insured?
Drive other car—broadened coverage for named individuals
Individual named insured
The individual named insured endorsement provides coverage similar to that provided under the personal auto policy to family members of the named insured while using any auto.
