Unit 16 Flashcards
business auto physical damage form
covers the insured’s owned or hired business autos for physical damage only
commercial auto coverage must contain
- 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
business auto coverage form is used to
insure the private passenger and commercial auto exposures other than garages, truckers, and most carriers
business auto coverage form includes
- liability coverage
- physical damage coverage (comprehensive open peril or specified named causes of loss and collision)
specifically described autos
applies only to autos specifically listed in the business auto coverage form declarations
an auto acquired during the policy period is only a covered auto for _____
particular coverage if the insured already insures all autos for this coverage
liability coverage policy agrees to pay all sums….
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)
liability action of the business auto coverage form will cover these supplementary payments
- 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
physical damage of the business auto coverage has 3 principle coverages
- comprehensive
- specified causes of loss
- collision
comprehensive (open peril)
covers any loss other than collisions or overturn (flip)
specified causes of loss (named peril)
-fire
-lightning
-explosion
-theft
-windstorm
-hail
-earthquake
-flood
-vandalism or mischief
-stinking, burning, collision, derailment of a convoyance
collision
covers overturn of covered auto and collision with another object
insured may selected different
physical damage coverage options for different vehicles
collision and comprehensive coverages are written with a
deductible under comprehensive coverage
comprehensive losses examples
- glass breakage
- hitting a bird/animal
- falling objects
coverage for towing and labor costs
incurred when a covered private passenger auto is disabled
coverage extension
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
what businesses are excluded by the business auto coverage form?
- automobile-type :
- car dealerships
- gas stations
- parking garages
garage coverage form
car dealerships, gas stations, parking garages
garage coverage forms provides what coverages
- liability
- garagekeepers
- physical damage
what can be added to garage coverage forms by endorsement
- uninsured motorists,
- underinsured motorists
- medical payments
the garage coverage form covers both _____
auto and business liability arising out of:
-covered autos
-garage operations
garage customers are not covered if:
they have their own liability coverage
if customers do not have liability coverage of their own…
the garage form protects them, only minimal limits of financial responsibility
garagekeepers insurance coverage
coverage for liability for customers autos in care or custody, servicing, repair, parking, storage
in garagekeepers insurance the insured has the option of
purchasing direct damage garagekeepers insurance… pays for physical damage in the insured custody whether or not the insured is liable
direct damage garagekeepers insurance can be provided on…
a primary or excess basis
The causes of loss in direct damage garagekeepers insurance that can be covered…
comprehensive or specified causes of loss and collision
garage physical damage
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)
truckers coverage form includes three coverages:
- liability
- trailer interchange
- physical damage
trailer interchange insurance
covers damage to a specific trailer under the policy of the trucker
motor carrier
anyone who transports property by auto in a commercial enterprise (doesn’t matter if hired for that purpose)
those covered under the motor carrier form could also be covered under
the truckers form if they transport goods by hire
the motor carrier coverage form is identical to the
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)
if insurance is used to establish proof of financial responsibility, the MCS-90 endorsement….
must be attached to the policy (provides public liability coverage for bodily injury, property damage, environmental restoration
the individual named insured endorsement
extends personal auto-type coverage to immediate family members of the named insured
