AIC 302 CORRECT FINALS ANSWERS AND
QUESTIONS SET A+
✔✔Commercial package policy (CPP) - ✔✔Policy that covers two or more lines of
business by
combining ISO's commercial lines coverage parts.
✔✔Monoline policy - ✔✔Policy that covers only one line of business.
✔✔Garagekeepers coverage - ✔✔Coverage for damage to customers' autos left in the
named
insured's care while the insured is attending, servicing,
repairing, parking, or storing them.
✔✔Motor Carrier Coverage Form - ✔✔The coverage form filed by ISO that can be used
to insure
a person or an organization providing transportation by
auto in the furtherance of a commercial enterprise.
✔✔Owner-operators - ✔✔Individuals who lease themselves and their owned trucks
to motor carriers to transport property for the motor
carrier.
✔✔Hold-harmless agreement (or indemnity agreement) - ✔✔A contractual provision
that obligates one of the parties to
assume the legal liability of another party.
✔✔Trailer interchange agreement - ✔✔A contract under which two motor carriers agree
to swap
trailers and to indemnify each other for any damage that
occurs to the other's trailer while it is in the borrowing
motor carrier's possession.
, ✔✔Trailer interchange coverage - ✔✔Coverage for a motor carrier's liability for damage
to
trailers in its possession under a written trailer interchange
agreement.
✔✔MCS 90 endorsement - ✔✔The commercial auto endorsement required by the
Motor
Carrier Act of 1980, in which the insurer agrees to pay,
up to specified limits, damages that the insured becomes
legally obligated to pay for liability resulting from
negligence in the operation, maintenance, or use of any
motor vehicle subject to that law.
✔✔Transportation network company - ✔✔A company that uses a mobile application or
website to
connect riders with drivers and arrange transportation in a
personal auto for a fee.
✔✔Material misrepresentation - ✔✔A fact that has been misstated or omitted and that
could
be reasonably considered as affecting the insurer's decision
to enter into the contract, the insurer's evaluation of the
degree or character of the risk, or the calculation of the
premium.
✔✔Contribution by equal shares - ✔✔Method of sharing loss when two or more policies
apply
in which each insurer pays an equal amount until the
claim is fully paid or until one insurer exhausts its limit,
in which case the other insurer pays the remainder of the
claim (up to its limit).
✔✔Pro rata contribution - ✔✔An approach to other insurance by which the insurers
contribute to the loss payment in the proportion to which
they contribute to the total amount of coverage purchased
(their limits of liability).
✔✔Prejudiced (due to late notice) - ✔✔When an insurer's ability to investigate, settle, or
defend
a claim is adversely affected by an insured's late notice of
loss.
✔✔Special investigation unit (SIU) - ✔✔A division set up to investigate suspicious
claims,
premium fraud, or application fraud.
QUESTIONS SET A+
✔✔Commercial package policy (CPP) - ✔✔Policy that covers two or more lines of
business by
combining ISO's commercial lines coverage parts.
✔✔Monoline policy - ✔✔Policy that covers only one line of business.
✔✔Garagekeepers coverage - ✔✔Coverage for damage to customers' autos left in the
named
insured's care while the insured is attending, servicing,
repairing, parking, or storing them.
✔✔Motor Carrier Coverage Form - ✔✔The coverage form filed by ISO that can be used
to insure
a person or an organization providing transportation by
auto in the furtherance of a commercial enterprise.
✔✔Owner-operators - ✔✔Individuals who lease themselves and their owned trucks
to motor carriers to transport property for the motor
carrier.
✔✔Hold-harmless agreement (or indemnity agreement) - ✔✔A contractual provision
that obligates one of the parties to
assume the legal liability of another party.
✔✔Trailer interchange agreement - ✔✔A contract under which two motor carriers agree
to swap
trailers and to indemnify each other for any damage that
occurs to the other's trailer while it is in the borrowing
motor carrier's possession.
, ✔✔Trailer interchange coverage - ✔✔Coverage for a motor carrier's liability for damage
to
trailers in its possession under a written trailer interchange
agreement.
✔✔MCS 90 endorsement - ✔✔The commercial auto endorsement required by the
Motor
Carrier Act of 1980, in which the insurer agrees to pay,
up to specified limits, damages that the insured becomes
legally obligated to pay for liability resulting from
negligence in the operation, maintenance, or use of any
motor vehicle subject to that law.
✔✔Transportation network company - ✔✔A company that uses a mobile application or
website to
connect riders with drivers and arrange transportation in a
personal auto for a fee.
✔✔Material misrepresentation - ✔✔A fact that has been misstated or omitted and that
could
be reasonably considered as affecting the insurer's decision
to enter into the contract, the insurer's evaluation of the
degree or character of the risk, or the calculation of the
premium.
✔✔Contribution by equal shares - ✔✔Method of sharing loss when two or more policies
apply
in which each insurer pays an equal amount until the
claim is fully paid or until one insurer exhausts its limit,
in which case the other insurer pays the remainder of the
claim (up to its limit).
✔✔Pro rata contribution - ✔✔An approach to other insurance by which the insurers
contribute to the loss payment in the proportion to which
they contribute to the total amount of coverage purchased
(their limits of liability).
✔✔Prejudiced (due to late notice) - ✔✔When an insurer's ability to investigate, settle, or
defend
a claim is adversely affected by an insured's late notice of
loss.
✔✔Special investigation unit (SIU) - ✔✔A division set up to investigate suspicious
claims,
premium fraud, or application fraud.
