Unit 16

Question 1

business auto physical damage form

Answer 1

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

Question 2

commercial auto coverage must contain

Answer 2

• common policy declaration
• common policy conditions
• 1 of 5 (business auto, business auto physical damage, garage, truckers, motor carrier)
  -appropriate declarations for coverage form selected

Question 3

business auto coverage form is used to

Answer 3

insure the private passenger and commercial auto exposures other than garages, truckers, and most carriers

Question 4

business auto coverage form includes

Answer 4

• liability coverage
• physical damage coverage (comprehensive open peril or specified named causes of loss and collision)

Question 5

specifically described autos

Answer 5

applies only to autos specifically listed in the business auto coverage form declarations

Question 6

an auto acquired during the policy period is only a covered auto for _____

Answer 6

particular coverage if the insured already insures all autos for this coverage

Question 7

liability coverage policy agrees to pay all sums….

Answer 7

an insured legally must pay as damage because of BI or PD, insurance applies caused by an accident resulting from ownership, maintenance or use of a covered auto (coverage for defense costs and supplementary payments is also included)

Question 8

liability action of the business auto coverage form will cover these supplementary payments

Answer 8

• expenses the insurer incurs
• cost of bail bonds up to 2000 for violations because of covered accident
• cost of bonds within limit insurance
• expenses the insured incurs at insurer’s request (250 a day from time off work)
• costs insured has to pay from a suit
• interest after judgement and before payment

Question 9

physical damage of the business auto coverage has 3 principle coverages

Answer 9

• comprehensive
• specified causes of loss
• collision

Question 10

comprehensive (open peril)

Answer 10

covers any loss other than collisions or overturn (flip)

Question 11

specified causes of loss (named peril)

Answer 11

-fire
-lightning
-explosion
-theft
-windstorm
-hail
-earthquake
-flood
-vandalism or mischief
-stinking, burning, collision, derailment of a convoyance

Question 12

collision

Answer 12

covers overturn of covered auto and collision with another object

Question 13

insured may selected different

Answer 13

physical damage coverage options for different vehicles

Question 14

collision and comprehensive coverages are written with a

Answer 14

deductible under comprehensive coverage

Question 15

comprehensive losses examples

Answer 15

• glass breakage
• hitting a bird/animal
• falling objects

Question 16

coverage for towing and labor costs

Answer 16

incurred when a covered private passenger auto is disabled

Question 17

coverage extension

Answer 17

coverage for transportation expenses, theft beginning 48 hours after theft and ending when auto is returned and loss is paid, $20 per day or $600 total

Question 18

what businesses are excluded by the business auto coverage form?

Answer 18

• automobile-type :
• car dealerships
• gas stations
• parking garages

Question 19

garage coverage form

Answer 19

car dealerships, gas stations, parking garages

Question 20

garage coverage forms provides what coverages

Answer 20

• liability
• garagekeepers
• physical damage

Question 21

what can be added to garage coverage forms by endorsement

Answer 21

• uninsured motorists,
• underinsured motorists
• medical payments

Question 22

the garage coverage form covers both _____

Answer 22

auto and business liability arising out of:
-covered autos
-garage operations

Question 23

garage customers are not covered if:

Answer 23

they have their own liability coverage

Question 24

if customers do not have liability coverage of their own…

Answer 24

the garage form protects them, only minimal limits of financial responsibility

Question 25

garagekeepers insurance coverage

Answer 25

coverage for liability for customers autos in care or custody, servicing, repair, parking, storage

Question 26

in garagekeepers insurance the insured has the option of

Answer 26

purchasing direct damage garagekeepers insurance… pays for physical damage in the insured custody whether or not the insured is liable

Question 27

direct damage garagekeepers insurance can be provided on…

Answer 27

a primary or excess basis

Question 28

The causes of loss in direct damage garagekeepers insurance that can be covered…

Answer 28

comprehensive or specified causes of loss and collision

Question 29

garage physical damage

Answer 29

offers the same as business auto coverage form: comprehensive or specified causes of loss and collision
- excludes false pretense coverage (coverage for losses when a dealer voluntarily. parts with a covered auto because of a trick (such coverage is available by endorsement)

Question 30

truckers coverage form includes three coverages:

Answer 30

• liability
• trailer interchange
• physical damage

Question 31

trailer interchange insurance

Answer 31

covers damage to a specific trailer under the policy of the trucker

Question 32

motor carrier

Answer 32

anyone who transports property by auto in a commercial enterprise (doesn’t matter if hired for that purpose)

Question 33

those covered under the motor carrier form could also be covered under

Answer 33

the truckers form if they transport goods by hire

Question 34

the motor carrier coverage form is identical to the

Answer 34

truckers coverage form (provides trailer interchange coverage) (unlike the truckers form, owned private passenger autos may be covered since in the motor carrier coverage form)

Question 35

if insurance is used to establish proof of financial responsibility, the MCS-90 endorsement….

Answer 35

must be attached to the policy (provides public liability coverage for bodily injury, property damage, environmental restoration

Question 36

the individual named insured endorsement

Answer 36

extends personal auto-type coverage to immediate family members of the named insured