Definitions

Question 1

covers insured’s owned or hired business autos for physical damage only

Answer 1

Business auto physical damage

Question 2

used to insure the private passenger and commercial auto exposures of all businesses other than auto dealers and motor carriers

Answer 2

Business Auto Coverage Form

Question 3

costs arising out of statutory or regulatory requirements or any order by a government authority demanding that the insured tests for, monitor, clean up, remove, contain, treat, detoxify, or neutralize or respond to or assess the effects of pollutants

Answer 3

Covered pollution cost or expense

Question 4

actual or perceived loss in resale or market value that results from a direct accidental loss

Answer 4

Diminution of value

Question 5

solid, liquid, gaseous, or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste

Answer 5

Pollutants

Question 6

The policy agrees to pay all sums an insured legally must pay as damages because of BI or PD to which the insurance applies caused by an accident and resulting from ownership, maintenance, or use of a covered auto

Answer 6

Liability Coverage

Question 7

• The owner of an auto hired or borrowed from an employee or
  family member
  
  • Person who is working in an auto-type business
  • People besides employees or lessees while moving property to
    or from a covered auto
    *The owner of a hired or borrowed auto

Answer 7

Individuals not covered for liability coverage

Question 8

Comprehensive, specified case of loss, collision

Answer 8

3 principles of Physical Damage

Question 9

covers any loss other than collision or overturn that is not excluded by the policy

Answer 9

Comprehensive

Question 10

limited form of comprehensive coverage that only covers fire, lightning, explosion, theft, windstorm, hail, earthquake, or flood

Answer 10

Specified cause of loss

Question 11

covers overturn of covered auto and collision w/ another object

Answer 11

Collision

Question 12

provides coverage for transportation expenses with a max of $30/day for a max of 30 days

Answer 12

Coverage Extension

Question 13

rented autos for which the insured is legally responsible under a contract or agreement with a max of $30/day for a max of 30 days

Answer 13

Loss of use

Question 14

• Sound reproducing and receiving equipment, tapes, and record
• Wear and tear, freezing, mechanical, or electrical breakdown, or
  road damage to tires
• Arising out of war
• Arising out of nuclear events
• Covered autos while be used for, or while practicing or preparing for, organized or professional racing, demo, or stunting activities
• Due to diminution of value

Answer 14

Exclusions for physical damage

Question 15

1) Pay for, repair, or replace the damaged or stolen property
2) Return stolen property to the insured at the company’s expense and pay for all damages resulting from the theft
3) Take the damaged or stolen property at an agreed or appraised value

Answer 15

3 ways for settling physical damage claims

Question 16

Covered Autos, General Liability Coverage, and Acts Errors, or Omissions Liability Coverage

Answer 16

3 Sections of Auto Dealers Coverage

Question 17

a. Covered auto liability coverage for BI or PD arising out of the ownership, maintenance, or use of an auto
b. Physical damage coverages for owned vehicles, including vehicles for sale
c. Also includes garagekeepers coverage that covers the dealership’s liability for damage of an auto that is in the possession of the dealership

Answer 17

Covered Autos Coverage for Auto Dealers Coverage

Question 18

a. BI and PD liability
b. Personal and advertising injury liability
c. Locations and operations medical payments

Answer 18

General Liability Coverage for Auto Dealers Coverage

Question 19

a. Failing to comply w/ laws pertaining to credit and lease agreements
b. Failing to comply w/ laws requiring disclosure of odometer readings
c. Errors and omissions committed in the course of acting as a licensed insurance
producer for coverages sold in the connection with the sale or lease of an auto
d. Title defects for sold or leased autos

Answer 19

Acts, Errors, or Omissions Liability Coverage for Auto Dealers Coverage

Question 20

Customer’s autos left with the insured for service, repair, storage, or safekeeping (garagekeepers coverage)

Answer 20

Symbol 30

Question 21

Physical damage coverage only for the dealers’ autos including owned autos, autos for sale, and autos on consignment

Answer 21

Symbol 31

Question 22

trailers borrowed or leased by the named insured for which liability for loss has been assumed under a written trailer interchange agreement; applies to comprehensive, specified causes of loss collision coverages of trailer interchange coverage only

Answer 22

Symbol 69

Question 23

Trailers owned or hired by the named insured while the trailers are in someone else’s possession under a written trailer interchange agreement

Answer 23

Symbol 70

Question 24

Requires trucking companies to certify that they are able to meet financial obligations if they become liable for injury or damage arising from their trucking operations

Answer 24

Motor Carrier Act of 1980

Question 25

Required endorsement if insurance is being used to prove financial responsibility under the Motor Carrier Act of 1980

Answer 25

MCS-90 Endorsement

Question 26

coverage for businesses that haul the good of others or who transport property by auto in a commercial enterprise

Answer 26

Motor Carrier Coverage

Question 27

covers damage to a specific trailer under the policy of the trucker in whose possession the trailer is at the time of loss

Answer 27

Trailer interchange

Question 28

1) Liability
2) Trailer Interchange
3) Physical Damage

Answer 28

3 Categories of Motor Carrier Coverage