Unit 17: Commercial Auto Insurance

Question 1

Commercial auto coverage

Answer 1

monoline or included in a CPP

must include:

• declarations
• conditions
• 1 of 5 separate coverage forms and appropriate declarations forms

Question 2

Business auto coverage form

Answer 2

• insure private autos
• exclusions: garages, truckers, and motor carriers
• liability and physical damage

Question 3

Definitions section

Answer 3

auto, bodily injury, property damage, pollutants

Question 4

Covered autos (chart)

Answer 4

• selections listed on declarations page of policy
• different symbols for different policies
• broadest coverage symbol: 1 - any auto
• most restrictive is symbol: 7 - specific auto

Question 5

Insureds

Answer 5

named and employees

Question 6

Liability exclusions pt 1

Answer 6

• expected or intended injuries
• assumed under contract or agreement
• work-related injuries to employees
• damage to property owned by, transported by, or in the care, custody, or control of the insured
• damage arising out of the movement of property by a mechanical device

Question 7

Liability exclusions pt 2

Answer 7

• bodily injury or property damage arising out of the operation of self-propelled vehicles with attached cherry pickers or permanently installed equipment
• pollution damage, except as specifically provided in the policy
• covered autos while being used for, or while practicing or preparing for, organized or professional racing, demolition, or stunting activities

Question 8

Supplementary (additional) payments

Answer 8

• cost of bail bonds up to $2,000 for violations bc of a covered accident
• expenses the insured incurs at the insured’s request, inc. lost earnings up to $250/day
• court costs the insured is required to pay bc of a suit
• interest that accrues after a judgment and before it is paid
• all expenses incurred by the insurer

Question 9

Out of state coverage

Answer 9

will pay increased limits if necessary