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CPCU 552 Quiz 4

Business Auto

QuestionAnswer
Which Commercial Business Auto Coverage Symbol is the broadest Form of Coverage that Includes "Any Auto" Symbol 1
All Vehicles under Symbol 7 under the Business Auto Liability, needs to be named in the policy unless the two exceptions of the following: 1. New Vehicle is Replacing old Vehicle 2. There is a 30 Grace Period before Actual Reporting
Define Employer's Nonowneship Liability Employees using their own vehicle for running errands for the business, can also include Post Office Runs or getting Starbucks
What are the Main Consequences of Damage and Destruction of an Auto: 1. Decrease in Loss of Auto Value 2. Loss of Use of Auto Until it can be Replaced
Define Symbol 19: Mobile Equipment. Classified as Land vehicles, that are not subject to state compensatory financial law. Not Registered and no license required to operate.
Can Coverage be Extended to Add Liability to Mobile Equipment and Trailers Hauled by Covered Vehicles. Yes, if used temporarily
Pollution is one of the Exclusions under the Business Auto Form, but what is the Exception: If there is a spill in a result of an accident, would be covered and impair the daily business functions of the business
What are the 3 Components of the Physical Damage Portion of the Commercial Business Auto 1. Comprehensive 2. Collision 3. Specified Cause of Loss
Define Specified Cause of Loss Limited listed Perils form of Comprehensive Coverage under Physical Damage of Business Auto
Define Loss of Use Coverage Liability Portion that Covers the Physical Damage of a Rented Vehicle. Loss of Use until vehicle is repaired since it can't be re-rented for the time being
Describe Business Auto Conditions under the Territory in Mexico in Coverage No Coverage in Mexican Territory. And Endorsement can be added to provide coverage within 25 miles away from US Territory, best covered in Mexican Policy (Their Limits are Strict and Differ)
What are the Exclusions of Physical Damage 1. War 2. Radioactive Contamination 3. Maintenance Issues 4. Electronic Equipment (Example: GPS)
What is the typical Physical Damage value when replacing a vehicle Actual Cash Value (ACV)
Define Stated Amount Insurance on a Business Auto: Customized Special Vehicles, can either be ACV of Replacement Cost of Vehicle (Example: Wideload, Heavy Vehicles)
Define Individual Named Insured Endorsement: Coverage that extends to named insured as Sole Proprietor to it's Family Members or themselves, only in the nature of Business Use
Define Auto Medical Payments: Provides Medical Payment without the need of a Legal Liability, and also does not to be named as third party
Define the Exception of the "Contractual Liability" under one of the Exclusions listed in Section 2 for the Business Auto Where the Loss is Assumed Under Contract, Exclusions are: 1. If there Parts of the Liability missing in the Actual Contract 2. Occurrence Trigger was after the Contract was done
Name the 3 Basic Duties of Section 2 of the Business Auto: 1. Duty to Pay Damages 2. Duty to Pay Covered Pollution Costs 3. Duty to Defend Insured
Define Out-Of-State Extensions: In the Event the Insured drives to another state where in the case it can be that the Liability Requirements for that State is Higher, like a Personal Auto, Coverage will automatically Extend to satisfy the limits of that state
Will Liability Coverage Cover Court Cost from a Fraudulent Claim from the 3rd Party? No, and also it wouldn't incur into the Aggregate
Who are the Parties Affected by the Personal Loss Exposures: 1. A Person Who Suffered an Injury due to an Auto Accident 2. A Pedestrian 3. Person Occupying an Auto
Under Being Names Insured, The Insured, Employee are Covered under Symbol 9, will be Rental Company be Covered if the Company Reps from the Rental Company drove the Vehicle No
Define Employee Hired Auto Coverage Auto Coverage that Transfers to the Employee with Permission of the Employer for vehicle rental only for the sole purpose of the business
Define Uninsured Motorist under the Business Auto Form Covers BI/PD Damages when the Injured Party was subject to Hit and Run or Liable Party did not have enough Insurance
Define Uninsured Motorists under the Conditions of Executive Officers or Other Employees who are Provided with Company Cars for their Personal Use They May Have no other Auto Insurance so that Can Purchase Uninsured Motorists to Insure the Vehicle Themselves for their Personal Use
In the States Where Personal Injury Protection (PIP) is by Law, What are the typical Coverages: 1. Medical Loss 2. Loss of Income 3. Loss of Services 4. Funeral Expenses
What Coverage Endorsement would be the Solution for the Employer if the Employee is in Possession of the Company car and has no other car and no Personal Insurance, in the event of borrowing a Neighbor's Car and causing an Accident with no Insurance Drive Other Car-Broadened Coverage for Named Individuals Endorsement
Commercial Auto Coverage Respond to Auto Accidents Pertaining to: 1. Auto Medical Payments 2. Personal Injury Coverage (PIP) 3. Uninsured Motorist
Define the 5 Sections of the Business Auto: 1. Covered Autos 2. Liability Coverage 3. Physical Damage 4. Business Auto Conditions 5. Definitions
Define Insurance Provision, under Cross Liability - Severity of Interest Clause: Dividing the Liability Limits Depending on the Limits Obtained. (Comparative Negligence)
Why Might a Sole Proprietor purchase Uninsured Motorist when they have a Business Auto Policy When they have chosen not to Obtain Worker's Compensation Insurance
Is Mechanical Devices Covered in a Business Auto Policy No, It is best Covered under the CGL when it's an Independent Mechanical Device
What is the Rental Coverage Limit under the Physical Damage Portion of the Business Auto $20 a Day, $600 per Claim
In Personal Auto Liability Follows the Car, Does it Apply to the same conditions to a Business Auto Policy No, Liability Follows the car. If such coverage is needed "Employees as Insureds Endorsement" is needed
Created by: rsls80