HANDLING PRINCIPLES STUDY GUIDE 2026
CERTIFICATION A+
◉ What does Extended PIP do ?.
Answer: -Increases medical benefits from 80% to 100%.
-Increases income loss from 60% to 80%.
-Applies only to named insured and family members.
◉ What does additional PIP do ?.
Answer: -Increases the $10,000 limit by amounts such as $10,000,
$25,000, $40,000, and $90,000(again, for a premium increase).
-Increases do not impact $5,000 death benefit.
-Applies only to insured and family members.
◉ Personal Auto Policy.
Answer: Used to insure the automobile exposures of individuals and
families.
◉ Business Auto Policy.
Answer: Insurers the automobile exposures of Business.
,◉ What are the kinds of autos owned by businesses and covered
under a Business Auto Policy ?.
Answer: -Private Passenge Type Auto-Station Wagons, jeeps,
pickups, panel trucks, vans, and utility trailers.
-Public Auto- Buses and Taxicabs
-Commercial Auto- truck tractors, semi-trailers, commercial trailers,
and Service trailers.
-Special types of vehicles like cherry pickers, air compressors.
◉ Garage Coverage Form.
Answer: Used to insure businesses engaged in selling, servicing,
repairing, parking or storing autos.
◉ Truckers Coverage Form.
Answer: Used to insure businesses that are hired to transport goods
for someone else.
◉ Business Auto Coverage Form.
Answer: Used to insure the automobile exposures of all businesses
other than garage or trucking businesses.
◉ What does Commercial General Liability contract includes ?.
,Answer: -Declarations
-Common policy conditions
-One of the two coverage forms, Occurrence, or Claims-Made
-A Nuclear Energy Liability Exclusion endorsement
-Various other endorsements may be attached to broaden or restrict
the coverage provided by these basic forms.
◉ Declarations.
Answer: Identifies the named insured and address, states the policy
period and premium and miscellaneous information about the
insured, and specifies the limits of coverage that apply.
◉ The policy states that if a company wishes to cancel, How many
days must it give prior notice ?.
Answer: 30 days.
◉ Nuclear Endorsement.
Answer: Excludes all hazards related to nuclear energy.
◉ What is Coverage A ?.
Answer: Bodily Injury and Property Damage Insuring Agreement.
◉ Bodily Injury(BI).
, Answer: Physical harm and includes sickness or disease or death
resulting there from.
◉ Property Damage(PD).
Answer: Physical injury to tangible property, including loss of use of
that property.
◉ Occurrence.
Answer: An accident, including. continues or repeated exposure to
substantially the same general harmful conditions.
◉ Accident.
Answer: A sudden, unexpected event.
◉ Coverage Territory.
Answer: Is the U.S. and its territories or possessions , Puerto Rico
and Canada, including international waters and airspace between
these places.
◉ The Coverage Trigger.
Answer: Determines how policy will respond.
◉ The Occurrence form.