Commercial Casualty II: Questions With Correct
Solutions
Included in the definition of an "insured contract" under the Business Auto
Coverage Form is wording pertaining to rental or lease vehicles. Which of the
following statements is part of that definition?
a. Agreements entered into by the insured, only for bodily injury which results
from the insured's use of the rented or leased auto used for business
b. An agreement as part of the business, pertaining to the auto rental or lease
by the insured or employee(s), but not for the obligation for the damage to the
rented or leased auto Right Ans - B.
George drove the scheduled delivery truck to the client's home to deliver a
new refrigerator. While moving the appliance with the dolly (hand truck) into
the home, it fell and damaged the flooring. Which coverage form, if any, would
provide coverage for customer's floor?
a. Business Auto Coverage Form
b. Commercial General Liability Coverage Form Right Ans - A.
What does Item 3.B. trigger under the Workers' Compensation and
Employer's Liability Insurance policy? Right Ans - It triggers employers'
liability coverage for those states listed in 3.A. for the limits that are shown for
bodily injury by accident for each accident, bodily injury by disease with a
policy limit, and bodily injury by disease for each employee.
Employer's Liability Coverage Right Ans - Bodily injury by accident, each
accident - $100,000 Each accident
Bodily injury by disease, per policy limit - $500,000 policy limit
Bodily injury by disease, each employee - $100,000 each employee
There is a _____ day grace period to move a state from 3.C. to 3.A. at the
beginning of the policy year.
a. 10
, b. 15
c. 30
d. 60 Right Ans - C.
Insured Persons under a BAP Right Ans - - the named insured for a covered
auto
- a permissive user of a covered auto
- anyone held vicariously liable for a named insured
Exceptions to Who Is an Insured on a BAP: Right Ans - - except the owner
or anyone else from whom an insured borrows a covered auto (this coverage
may be purchased by endorsement)
- except an employee, if the covered auto is owned by the employee or a
member of the employee's household (this coverage may be purchased by
endorsement)
- except anyone using a covered auto while working in the auto business
unless it is the named insured's business
- except non-employees loading and unloading covered autos
- except a partner/member, if the covered auto is owned by the
partner/member or a member of her/his household (this coverage may be
purchased by endorsement)
Supplementary Payments on a BAP: Right Ans - - all expenses of the
company
- cost of bail bonds for insureds up to $2,000
- cost of bonds for release of attachments (up to the limit of insurance)
- reasonable expenses of the insured to comply with requests of the company,
including up to $250 per day for lost earnings
- all court costs
- post-judgement interest
Business Auto Loss Conditions: Right Ans - 1. Appraisal for Physical
Damage Loss
2. Duties in the Event of An Accident, Claim, Suit, Or Loss
3. Legal Action Against Us
4. Loss Payment - Physical Damage Coverages
5. Transfer of Rights of Recovery Against Others to Us
Solutions
Included in the definition of an "insured contract" under the Business Auto
Coverage Form is wording pertaining to rental or lease vehicles. Which of the
following statements is part of that definition?
a. Agreements entered into by the insured, only for bodily injury which results
from the insured's use of the rented or leased auto used for business
b. An agreement as part of the business, pertaining to the auto rental or lease
by the insured or employee(s), but not for the obligation for the damage to the
rented or leased auto Right Ans - B.
George drove the scheduled delivery truck to the client's home to deliver a
new refrigerator. While moving the appliance with the dolly (hand truck) into
the home, it fell and damaged the flooring. Which coverage form, if any, would
provide coverage for customer's floor?
a. Business Auto Coverage Form
b. Commercial General Liability Coverage Form Right Ans - A.
What does Item 3.B. trigger under the Workers' Compensation and
Employer's Liability Insurance policy? Right Ans - It triggers employers'
liability coverage for those states listed in 3.A. for the limits that are shown for
bodily injury by accident for each accident, bodily injury by disease with a
policy limit, and bodily injury by disease for each employee.
Employer's Liability Coverage Right Ans - Bodily injury by accident, each
accident - $100,000 Each accident
Bodily injury by disease, per policy limit - $500,000 policy limit
Bodily injury by disease, each employee - $100,000 each employee
There is a _____ day grace period to move a state from 3.C. to 3.A. at the
beginning of the policy year.
a. 10
, b. 15
c. 30
d. 60 Right Ans - C.
Insured Persons under a BAP Right Ans - - the named insured for a covered
auto
- a permissive user of a covered auto
- anyone held vicariously liable for a named insured
Exceptions to Who Is an Insured on a BAP: Right Ans - - except the owner
or anyone else from whom an insured borrows a covered auto (this coverage
may be purchased by endorsement)
- except an employee, if the covered auto is owned by the employee or a
member of the employee's household (this coverage may be purchased by
endorsement)
- except anyone using a covered auto while working in the auto business
unless it is the named insured's business
- except non-employees loading and unloading covered autos
- except a partner/member, if the covered auto is owned by the
partner/member or a member of her/his household (this coverage may be
purchased by endorsement)
Supplementary Payments on a BAP: Right Ans - - all expenses of the
company
- cost of bail bonds for insureds up to $2,000
- cost of bonds for release of attachments (up to the limit of insurance)
- reasonable expenses of the insured to comply with requests of the company,
including up to $250 per day for lost earnings
- all court costs
- post-judgement interest
Business Auto Loss Conditions: Right Ans - 1. Appraisal for Physical
Damage Loss
2. Duties in the Event of An Accident, Claim, Suit, Or Loss
3. Legal Action Against Us
4. Loss Payment - Physical Damage Coverages
5. Transfer of Rights of Recovery Against Others to Us
