AINS 23 Ch. 8 Commercial Auto Exam Questions with Correct Answers
Question 1:
window and causes additional damage. What is the insurance company's liability for the loss?
The insurance company is liable for the damage by the vandals but not the damage from the
rain.
The specified causes of loss coverage of the business auto policy includes coverage for which
one of the following?
Answer:
Collision of a conveyance transporting the insured vehicle.
Bilo Manufacturing is weighing whether to lease vehicles for its employees or have them drive
their own autos while on company business. Which one of the following exposures is created if
Bilo decides
Question 2:
in favor of employee-owned autos?
Answer:
Employer's Nonownership Liability
Question 3:
Automobile liability exposures can result from
Answer:
Hiring or borrowing an automobile.
Artful Ways is covered by two primary business auto policies. Policy A has a $100,000 limit and
Policy B has a $300,000 limit. The organization experienced an $80,000 covered loss. How much
will be
Question 4:
paid by insurer B under the other insurance provision of Artful Ways' business auto policy?
$60,000
If an insured has failed to cooperate with an insurer in the settlement of a claim, which one of
the following policy conditions prevents the insured from suing the insurer if the insured is not
satisfied with the insurer's handling of the claim?
Answer:
Legal Action Against the Insurer
Alice has the use of a company car insured with a Business Auto Coverage Form with one
endorsement, for uninsured motorists (UM) coverage. Alice was in an accident while driving the
car and sustained the following losses:
, Question 5:
paid by insurer B under the other insurance provision of Artful Ways' business auto policy?
$60,000
If an insured has failed to cooperate with an insurer in the settlement of a claim, which one of
the following policy conditions prevents the insured from suing the insurer if the insured is not
satisfied with the insurer's handling of the claim?
Answer:
Legal Action Against the Insurer
Alice has the use of a company car insured with a Business Auto Coverage Form with one
endorsement, for uninsured motorists (UM) coverage. Alice was in an accident while driving the
car and sustained the following losses:
$ 200 - housekeeper for one day$ 300 - physical therapy and rehabilitation$ 400 - lost
wages$1,000 - hospital bills$2,000 - pain and sufferingThe other driver was at fault but had no
insurance. Assuming that no other insurance applies, how much
$ 200 - housekeeper for one day$ 300 - physical therapy and rehabilitation$ 400 - lost
wages$1,000 - hospital bills$2,000 - pain and sufferingThe other driver was at fault but had no
insurance. Assuming that no other insurance applies, how much
$ 200 - housekeeper for one day
$ 300 - physical therapy and rehabilitation
$ 400 - lost wages
$1,000 - hospital bills
$2,000 - pain and suffering
The other driver was at fault but had no insurance. Assuming that no other insurance applies,
how much
$ 200 - housekeeper for one day
$ 300 - physical therapy and rehabilitation
$ 400 - lost wages
$1,000 - hospital bills
$2,000 - pain and suffering
The other driver was at fault but had no insurance. Assuming that no other insurance applies,
how much
Question 6:
can Alice collect under her employer's UM coverage?
Answer:
$3,900
Premiums for private passenger autos insured under a business auto policy are obtained
directly from
Question 1:
window and causes additional damage. What is the insurance company's liability for the loss?
The insurance company is liable for the damage by the vandals but not the damage from the
rain.
The specified causes of loss coverage of the business auto policy includes coverage for which
one of the following?
Answer:
Collision of a conveyance transporting the insured vehicle.
Bilo Manufacturing is weighing whether to lease vehicles for its employees or have them drive
their own autos while on company business. Which one of the following exposures is created if
Bilo decides
Question 2:
in favor of employee-owned autos?
Answer:
Employer's Nonownership Liability
Question 3:
Automobile liability exposures can result from
Answer:
Hiring or borrowing an automobile.
Artful Ways is covered by two primary business auto policies. Policy A has a $100,000 limit and
Policy B has a $300,000 limit. The organization experienced an $80,000 covered loss. How much
will be
Question 4:
paid by insurer B under the other insurance provision of Artful Ways' business auto policy?
$60,000
If an insured has failed to cooperate with an insurer in the settlement of a claim, which one of
the following policy conditions prevents the insured from suing the insurer if the insured is not
satisfied with the insurer's handling of the claim?
Answer:
Legal Action Against the Insurer
Alice has the use of a company car insured with a Business Auto Coverage Form with one
endorsement, for uninsured motorists (UM) coverage. Alice was in an accident while driving the
car and sustained the following losses:
, Question 5:
paid by insurer B under the other insurance provision of Artful Ways' business auto policy?
$60,000
If an insured has failed to cooperate with an insurer in the settlement of a claim, which one of
the following policy conditions prevents the insured from suing the insurer if the insured is not
satisfied with the insurer's handling of the claim?
Answer:
Legal Action Against the Insurer
Alice has the use of a company car insured with a Business Auto Coverage Form with one
endorsement, for uninsured motorists (UM) coverage. Alice was in an accident while driving the
car and sustained the following losses:
$ 200 - housekeeper for one day$ 300 - physical therapy and rehabilitation$ 400 - lost
wages$1,000 - hospital bills$2,000 - pain and sufferingThe other driver was at fault but had no
insurance. Assuming that no other insurance applies, how much
$ 200 - housekeeper for one day$ 300 - physical therapy and rehabilitation$ 400 - lost
wages$1,000 - hospital bills$2,000 - pain and sufferingThe other driver was at fault but had no
insurance. Assuming that no other insurance applies, how much
$ 200 - housekeeper for one day
$ 300 - physical therapy and rehabilitation
$ 400 - lost wages
$1,000 - hospital bills
$2,000 - pain and suffering
The other driver was at fault but had no insurance. Assuming that no other insurance applies,
how much
$ 200 - housekeeper for one day
$ 300 - physical therapy and rehabilitation
$ 400 - lost wages
$1,000 - hospital bills
$2,000 - pain and suffering
The other driver was at fault but had no insurance. Assuming that no other insurance applies,
how much
Question 6:
can Alice collect under her employer's UM coverage?
Answer:
$3,900
Premiums for private passenger autos insured under a business auto policy are obtained
directly from
