CISR Commercial Casualty II Business Auto Policy Exam 32 Questions with Answers,100% CORRECT

CISR Commercial Casualty II Business Auto Policy Exam 32 Questions with Answers 5 Parts that make up the Business Auto Policy -CORRECT ANSWER 1. Common Policy Declarations 2. Common Policy Conditions 3. Business Auto Declarations 4. Business Auto Coverage Forms 5. Endorsements The Business Auto Coverage Form - CORRECT ANSWER Designed to provide coverage for most Business Risks (Including auto service and auto repair) The Motor Carrier Coverage Form - CORRECT ANSWER Designed for businesses that transport materials, commodities, and goods for themselves as well as others The Auto Dealers Coverage Form - CORRECT ANSWER Designed for auto dealers and similar auto businesses Exposures Covered by the Business Auto Coverage Form - CORRECT ANSWER 1. Liability for the ownership, maintenance or use of covered autos - Owned, Non Owned (as defined in the BAC form), Hired or borrowed (as defined in the BAC form) 2. Physical Damage for losses to covered autos - Owned or Hired or borrowed (as defined in the BAC form) - Comprehensive - Specified causes of loss - Collision - Towing (Private passenger autos only) Endorsement Coverages - CORRECT ANSWER Medical Payments Personal Injury Protection Uninsured/Underinsured Motorist Accident - CORRECT ANSWER includes continuous or repeated exposure to the same conditions resulting in bodily Injury or property damage Auto - CORRECT ANSWER - A land motor vehicle; trailer or semitrailer - Designed for Travel on public roads - Land vehicle subject to compulsory or financial responsibility or other motor vehicle insurance law - Does NOT include mobile equipment as defined Bodily Injury - CORRECT ANSWER bodily injury, sickness or disease sustained by a person including death resulting from any of these Property Damage - CORRECT ANSWER damage to or loss of use of tangible property Insured - CORRECT ANSWER any person or organization qualifying as an insured in the who is an insured provision of the applicable coverage. Except with respect to the limit of insurance, the coverage afforded applied separately to each insured who is seeking coverage or against whom a claim or suit is brought Insured Contract - CORRECT ANSWER - a lease of premises - a sidetrack agreement - similar to the CGL policy definition (but without elevator maintenance agreement) and includes Auto rental agreements - Auto rental agreements entered into as part of the named insured's business by the named insured or by the named insured's employee - Does NOT include property damage to the rented/ leased auto Itself Loss - CORRECT ANSWER - direct and accidental loss or damage - Definition is used for Physical Damage and does not include loss of use Pollutants - CORRECT ANSWER any solid, liquid, gaseous, or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned, or reclaimed. Trailer - CORRECT ANSWER includes semitrailer Mobile Equipment includes these 6 types of Land Vehicles - CORRECT ANSWER - designed for use principally off public roads - maintained for use solely on or next to premises you own or rent - travel on crawler treads - maintained primarily to provide mobility to permanently mounted equipment as defined - NOT self-propelled and are maintained primarily to provide mobility to permanently attach equipment of the types defined - maintained primarily for purposes other than the transportation of persons or cargo Self-Propelled land vehicles - CORRECT ANSWER -snow removal - road maintenance, but no construction or resurfacing - Example: Paint striper - Street cleaning - Cherry pickers and similar devices (must be mounted on a truck chassis) - Air compressors, pumps and generators Symbol 1 - CORRECT ANSWER - Any Auto Liabililty* - can only be used to provide liability coverage - triggers liability coverage for ALL autos - provided the broadest liability coverage possible Symbol 2 - CORRECT ANSWER - Owned "autos" only Liability - Only those autos you own (and for covered autos liability coverage any trailers you dont own while attached to power units you own). This includes those autos you acquire ownership of after the policy begins - Physical Damage - Med pay - UM/ UIM Symbol 3 - CORRECT ANSWER - Owned private passenger autos only Liability - Only the private passenger auto you own - This includes those private passenger autos you acquire ownership of after the policy begins - Physical Damage - Med Pay - UM/UIM Symbol 4 - CORRECT ANSWER - Owed Autos OTHER than Private Passenger Autos only Liability - Only those autos you own that are not the private passenger type (and for covered autos liability coverage any trailers you don't own while attached to power units you own). This includes those autos not of the private passenger type you acquire ownership of after the policy begins - Physical Damage - Med Pay - UM/ UIM Symbols - CORRECT ANSWER The business auto policy uses numerical symbols to designate which autos are covered for the carious coverages provided by the policy. A symbol must be on the Declaration page to trigger coverage Symbols 2, 3, and 4 - CORRECT ANSWER - Triggers coverage for autos owned at the inception of the policy as well as automatic coverage for autos (of the same type) acquired during the policy period. - Can be used to provide liability, medical payments, UM/UIM, and physical damage coverage (towing and labor only on Symbol 3) Symbol 5 - CORRECT ANSWER - Used for owned autos - That are required to have and can not reject no-fault benefits because of state law in the state where they are licensed or garaged - Includes newly acquired autos IF they are subject to the law - Autos subjected to no-fault personal injury protection Symbol 6 - CORRECT ANSWER - Used for owned autos - that are required to have and can not reject uninsured motorist coverage because of state law in the state where they are licensed or garaged - Includes newly acquired autos if they are subject to the law - Autos subjected to compulsory uninsured motorist Law Symbol 7 - CORRECT ANSWER - used for specifically described autos - Triggers coverage for autos scheduled in the declarations - Liability for non-owned trailers attached to a scheduled auto - Specified autos liability - Physical Damage - Med Pay - PIP - UM/UIM Symbol 8 - CORRECT ANSWER - used for hired or borrowed autos liability - Physical Damage - triggers coverage for autos the named insured leases, hired, rents or borrows. - Does not include autos leased, hired, rented or borrowed from employees, partners or members, or members of their households Symbol 9 - CORRECT ANSWER - non-owned autos only liability Symbol 10 - CORRECT ANSWER - Customized description of covered autos Liability - Physical Damage - Med pay - UM. UIM Symbol 19 - CORRECT ANSWER Any auto used by the named insured (owned, borrowed, hired) - Mobile equipment subjected to the motor vehicle insurance law liabilitiy 3 types of vehicles granted coverage through the liability extension - CORRECT ANSWER 1. Trailers - load capacity of 2,000 lb or less - designed primary for public roads - there is no automatic physical damage (collision/comp) 2. Mobile Equipment - while being carried or towed by a covered auto 3. Temporary Substitutes - Any non owned auto - While used with permission of the owner - As a temporary substitute for a covered auto to the named insured owns because the named insureds covered auto is out of service 1. Breakdown 2. Repair 3. Servicing 4. Loss 5. Destruction Endorsements that modify who is an insured - CORRECT ANSWER 1. Designated insured for covered autos liability coverage CA 20 48 2. Employee Hired Auto CA 20 54 3. Employees as insureds CA 99 33 4. Lessor - Additional insured and loss payee CA 20 01 5. Employee as Lessor CA 99 47 6. Drive Other Car Coverage - Broadened Coverage for Named Individuals CA 9910 7. Individual Named Insured CA 99 17