AD Banker Chapter 10 well elaborated

Which of the following is the least restrictive business auto symbol? A Symbol 4 B Symbol 19 C Symbol 1 D Symbol 8 Nice try! Symbol 1, All Autos, is the least restrictive symbol. - ANSWERSSymbol 1 Symbol 1, All Autos, is the least restrictive symbol. Which symbol applies only to autos specified in the Declarations? A Symbol 4 B Symbol 9 C Symbol 2 D Symbol 7 - ANSWERSSymbol 7 Symbol 7, Specifically Described Autos, applies only to those autos itemized in the Declarations. Specified causes of loss include all of the following perils, except: A Earthquake B Collision C Fire D Vandalism - ANSWERSCollision Supplementary Payments include all the following, except: A Loss of earnings B Bail bonds C Court costs D Attorney's fees - ANSWERSAttorney's fees Attorney's fees are not covered by Supplementary Payments. All of the following are excluded from coverage under the Business Auto Coverage form, except: A Property damage arising from pollution B Intentional Injury C Hired Autos D Property in the insured's care, custody, or control - ANSWERSHired Autos Which of the following would not be covered by Comprehensive coverage? A Loss by a Falling Object B Loss caused by Hitting an Animal C Vehicle Overturn D Glass Breakage - ANSWERSVehicle Overturn Overturn of Vehicle is covered under collision coverage. Which basis of Garagekeepers coverage applies regardless of liability, but only if the customer has no PD coverage of his/her own? A Excess B Direct Primary C Umbrella D Legal liability - ANSWERSExcess Excess Basis coverage applies regardless of liability, but only if the customer has no physical damage coverage of their own. Damage to a customer's car in the care of the insured would be covered by which section of the Garage Policy? A Medical Payments B Physical Damage C Garagekeepers D Liability - ANSWERSGaragekeepers Damage to a customer's car in the care of the insured is covered by the Garagekeepers Coverage. Damage to an insured auto would be covered by the Physical Damage coverage. Bodily Injury or Property Damage resulting from business operations would be covered by Liability coverage. There is no Medical Payments coverage in the unendorsed Garage Policy. Symbol 47 would be found in what type of Commercial Auto Policy? A Motor Carrier Coverage B Truckers Coverage C Business Auto D Garage - ANSWERSTruckers Coverage Symbol 47, covering trailers in the insured's possession, is a feature of the Truckers Coverage form. A trucker who transported both passengers and cargo would use which form? A Motor Carrier Coverage B Garage C Business Auto D Truckers Coverage - ANSWERSMotor Carrier Coverage While a trucker is defined as someone engaged in the business of transporting property for hire, a motor carrier is engaged in transporting property or passengers. The motor carrier form is a variation of traditional trucker's coverage developed to reflect the risks associated with transporting passengers in addition to cargo. All of the following are true of the Business Auto Coverage Form, except: A Provides no-fault in states that require it B Covers injuries to employees C Covers liability from mobile equipment while being towed D Does not include contractual liability - ANSWERSCovers injuries to employees Injuries to employees would be covered under Workers' Compensation. Which of the following is true of Non-owned vehicles under the BAP? A Non-owned Autos Coverage covers autos hired for specific purposes by the insured B Non-owned Autos Coverage covers autos leased for a term of 12 months or more by the insured C The main distinction between a hired auto and a non-owned auto is whether or not the auto is owned by an employee D Non-owned Autos Coverage covers rented vehicles - ANSWERSThe main distinction between a hired auto and a non-owned auto is whether or not the auto is owned by an employee The primary use of Symbol 9, Non-owned Autos Only Coverage is to protect the insured when employees use their autos in the insured's business. Which of the following would be considered a Non-owned Auto? A An auto owned by the insured's employee while being used in the insured's business or personal affairs B An auto borrowed by the insured C An auto leased or hired by the insured D An auto not used in the insured's business - ANSWERSAn auto owned by the insured's employee while being used in the insured's business or personal affairsSymbol 9, Non-owned Autos Only Coverage, provides coverage for only those autos the insured does not own, lease, hire, rent or borrow, which are used in connection with the insured's business. This includes autos owned by the employees or members of their household. A BAP covering only Mobile Equipment would include which Symbol? A Symbol 17 B Symbol 18 C Symbol 16 D Symbol 19 - ANSWERSSymbol 19 covers Mobile Equipment Subject to Compulsory or Financial Responsibility or Other Vehicle Insurance Law. The coverage triggers protection for 'mobile equipment' required to be licensed and registered to be operated on public roadways. This symbol is necessary since mobile equipment is excluded from the definition of 'auto' under the Business Auto Policy. All of the following are basic sections provided in the Garage Coverage Form, except: A Physical Damage Insurance B Liability Insurance C Comprehensive Insurance D Garagekeepers Insurance - ANSWERSComprehensive Insurance Comprehensive coverage is part of the Physical Damage coverage. Specified Causes of Loss under Physical Damage Coverage of the Business Auto Coverage Form does not include ___________. A Theft B Earthquake C Flood D Glass breakage - ANSWERSGlass breakage Transportation expenses begin how many hours after the theft of the vehicle? - ANSWERS48 For which of the following persons is the Drive Other Car endorsement intended? A Truckers and motor carriers B Owners of school buses C Individuals who do not own an auto D The officers and directors of a corporation - ANSWERSIndividuals who do not own an auto The Drive Other Car endorsement may be added to any of the business auto coverage forms and is designed for individuals who do not personally own and insure an auto. Transportation expenses include coverage for a replacement vehicle at up to how much per day? - ANSWERS$20 Which of the following is not a covered peril under the Garage Form's Specified Causes of Loss property damage coverage? A Flood B Wind C Repossession D Hail - ANSWERSRepo The specified perils for Garage form PD are: fire, lightning, explosion, theft, mischief, windstorm, hail, earthquake, flood, vandalism, or the sinking, burning, collision or derailment of any conveyance transporting the covered auto. A BAP covering only Non-owned Autos would include which Symbol? A Symbol 6 B Symbol 9 C Symbol 8 D Symbol 7 - ANSWERSSymbol 9 covers Non-owned Autos Only -- Only those autos the insured does not own, lease, hire, or borrow, which are used in connection with the insured's business. This includes autos owned by an employee of the insured, or a member of the employee's household. Medical payments under the Business Auto Coverage Form include: A An injury to anyone while occupying a vehicle without a reasonable belief that the person was entitled to do so B Injuries sustained by employees while on the job C Bodily injury to anyone while occupying any motorized vehicle having fewer than 4 wheels D Reasonable, necessary, medical and funeral expense because of bodily injury that is caused by an accident that is sustained by an insured - ANSWERSReasonable, necessary, medical and funeral expense because of bodily injury that is caused by an accident that is sustained by an insured Which of the following claims is excluded under the Business Auto Policy? A Injury to another while driving in another state B Bodily injury after a person is struck by a mechanical device attached to a covered truck C Damage to property in the insured's care, custody, or control D Bail bonds required after an insured's accident - ANSWERSDamage to property in the insured's care, custody, or control All of the following are eligible for a Business Auto Coverage Form, except: A A van that is used by a delivery firm B A forklift used in the business C A private passenger auto that is used in the business D A trailer that is used to carry a backhoe - ANSWERSA forklift used in the business Supplementary payments cover bail bonds up to what amount? - ANSWERS$2,000 Policyholder B has a BAP with limits of 100/300/50. In an accident for which B was liable, there were BI claims in the amounts of $80,000; $100,000; and $125,000; and PD claims of $20,000 and $35,000. How much will his policy pay? A $305,000 BI and $55,000 PD B $300,000 BI and $50,000 PD C $280,000 BI and $50,000 PD D $305,000 BI and $50,000 PD - ANSWERS$280,000 BI and $50,000 PD The BI claims of $80,000 and $100,000 will be paid in full. The $125,000 claim exceeds the per person limit and will only be paid up to $100,000, resulting in total BI payments of $280,000. The PD payments will be capped at the policy limit of $50,000 per accident. A BAP covering only Owned Autos Subject to No Fault would include which Symbol? A Symbol 5 B Symbol 7 C Symbol 8 D Symbol 9 - ANSWERSSymbol 5 All of the following are excluded under a BAP, except: A Completed Operations B Pollution C Property Damage D Racing - ANSWERSProperty Damage Which is the broadest basis for the Garagekeepers Coverage? A Direct primary basis B Legal liability basis C Full coverage basis D Direct excess basis - ANSWERSDirect excess basis When an employee is injured in an auto accident while on company business, he/she would be covered under: A Workers' Compensation Insurance B Garagekeepers Form C Company group health insurance D Garage Liability Form - ANSWERSWorkers' Compensation Insurance What is the primary difference between the Truckers Coverage Form and the Motor Carrier Coverage Form? A The Motor Carrier Coverage Form is not suitable for insuring trailers B The Motor Carrier Coverage Form is designed for those firms that haul or tow motor vehicles C The Motor Carrier Coverage Form is designed for those firms that haul motorized construction and/or farm equipment D The operating right granted by the public authority, for example, the truckers form says a trucker is someone engaged in the business of transporting property for hire while the motor carrier is engaged in transporting of property or passengers - ANSWERSThe operating right granted by the public authority, for example, the truckers form says a trucker is someone engaged in the business of transporting property for hire while the motor carrier is engaged in transporting of property or passengers The Business Auto Coverage Form is used: A For only owned, leased, or hired trucks, trailers and semi-trailers that are used by businesses B For only owned, leased, hired or borrowed trucks, trailers and semi-trailers that are used by businesses C For only owned, leased, hired or borrowed private passenger autos that are used by businesses D For owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers that are used by businesses - ANSWERSFor owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers that are used by businesses