AINS 23 Commercial Auto
Automobile liability exposures can result from
Select one:
A. Hiring or borrowing an automobile.
B. Loss of use of an owned automobile.
C. Damage to or destruction of an owned vehicle.
D. Workers compensation laws. - Answer-Hiring or borrowing an automobile
Big Corporation leases automobiles for its employees to drive on business. In addition, a few employees
use their own cars in performing their job duties. Which one of the following automobile loss exposures
exists for Big Corporation?
Select one:
A. Operations liability loss exposure
B. Bailee loss exposure
C. Employers nonownership liability loss exposure
D. Products and completed operations liability loss exposure - Answer-Employers nonownership liability
loss exposure
,Which one of the following property loss exposures can a business most likely avoid by leasing an auto
instead of buying it?
Select one:
A. Liability to parties injured by the operation of the auto
B. Cost of auto repairs
C. Decrease in or loss of the auto's value
D. Employers nonownership liability - Answer-Decrease in or loss of the auto's value
Joe Motors is an automobile repair shop. Which one of the following would be the best way for the
owner to maintain the goodwill of its customers?
Select one:
A. Purchasing garagekeepers insurance.
B. Lowering the physical damage deductible under its business auto insurance.
C. Purchasing garage liability insurance.
D. Raising liability limits under its business auto insurance. - Answer-Purchasing garagekeepers
insurance.
Symbol 3 entered for a coverage under the Business Auto Coverage Form indicates that coverage is
provided only for
Select one:
A. Specifically described autos.
B. Owned autos other than private passenger autos.
C. Trailers the named insured does not own.
D. Owned private passenger autos. - Answer-Owned private passenger autos.
Wilson was driving his business auto when it was struck by a hit-and-run driver. He looked to his
business auto policy for coverage for his injuries. Which one of the following symbols shown on his
policy automatically provides such coverage?
, Select one:
A. Symbol 2—Owned Autos Only
B. Symbol 3—Owned Private Passenger Autos Only
C. Symbol 5—Owned Autos Subject to No-Fault
D. Symbol 6—Owned Autos Subject to a Compulsory Uninsured Motorists Law - Answer-Symbol 6—
Owned Autos Subject to a Compulsory Uninsured Motorists Law
Kenneth, the named insured under a Business Auto Coverage Form (BACF) with symbol 1 shown for
liability coverage, causes an automobile accident while driving a rental car on a business trip. Which one
of the following correctly indicates whether Kenneth is covered under the liability insuring agreement of
his BACF for this accident?
Select one:
A. Kenneth is covered because Kenneth is at fault for the accident.
B. Kenneth is not covered because the rental car is not a specifically described auto.
C. Kenneth is covered because Kenneth, the named insured, is an insured for any auto.
D. Kenneth is not covered because liability coverage for rental cars used for business purposes is
excluded. - Answer-Kenneth is covered because Kenneth, the named insured, is an insured for any auto.
Johnny's Contracting Service has a Business Auto Coverage Form (BAC) covering his vehicles. He also has
a Commercial Package Policy (CPP) covering his equipment. Which one of the following would be
covered under Johnny's BAC?
Select one:
A. A bulldozer to move dirt at the jobsite
B. A truck used for hauling dirt from jobsites
C. A road resurfacing machine
D. A generator on a trailer at a jobsite - Answer-A truck used for hauling dirt from jobsites
Which one of the following losses would be covered by the Business Auto Coverage Form (BACF)?
Automobile liability exposures can result from
Select one:
A. Hiring or borrowing an automobile.
B. Loss of use of an owned automobile.
C. Damage to or destruction of an owned vehicle.
D. Workers compensation laws. - Answer-Hiring or borrowing an automobile
Big Corporation leases automobiles for its employees to drive on business. In addition, a few employees
use their own cars in performing their job duties. Which one of the following automobile loss exposures
exists for Big Corporation?
Select one:
A. Operations liability loss exposure
B. Bailee loss exposure
C. Employers nonownership liability loss exposure
D. Products and completed operations liability loss exposure - Answer-Employers nonownership liability
loss exposure
,Which one of the following property loss exposures can a business most likely avoid by leasing an auto
instead of buying it?
Select one:
A. Liability to parties injured by the operation of the auto
B. Cost of auto repairs
C. Decrease in or loss of the auto's value
D. Employers nonownership liability - Answer-Decrease in or loss of the auto's value
Joe Motors is an automobile repair shop. Which one of the following would be the best way for the
owner to maintain the goodwill of its customers?
Select one:
A. Purchasing garagekeepers insurance.
B. Lowering the physical damage deductible under its business auto insurance.
C. Purchasing garage liability insurance.
D. Raising liability limits under its business auto insurance. - Answer-Purchasing garagekeepers
insurance.
Symbol 3 entered for a coverage under the Business Auto Coverage Form indicates that coverage is
provided only for
Select one:
A. Specifically described autos.
B. Owned autos other than private passenger autos.
C. Trailers the named insured does not own.
D. Owned private passenger autos. - Answer-Owned private passenger autos.
Wilson was driving his business auto when it was struck by a hit-and-run driver. He looked to his
business auto policy for coverage for his injuries. Which one of the following symbols shown on his
policy automatically provides such coverage?
, Select one:
A. Symbol 2—Owned Autos Only
B. Symbol 3—Owned Private Passenger Autos Only
C. Symbol 5—Owned Autos Subject to No-Fault
D. Symbol 6—Owned Autos Subject to a Compulsory Uninsured Motorists Law - Answer-Symbol 6—
Owned Autos Subject to a Compulsory Uninsured Motorists Law
Kenneth, the named insured under a Business Auto Coverage Form (BACF) with symbol 1 shown for
liability coverage, causes an automobile accident while driving a rental car on a business trip. Which one
of the following correctly indicates whether Kenneth is covered under the liability insuring agreement of
his BACF for this accident?
Select one:
A. Kenneth is covered because Kenneth is at fault for the accident.
B. Kenneth is not covered because the rental car is not a specifically described auto.
C. Kenneth is covered because Kenneth, the named insured, is an insured for any auto.
D. Kenneth is not covered because liability coverage for rental cars used for business purposes is
excluded. - Answer-Kenneth is covered because Kenneth, the named insured, is an insured for any auto.
Johnny's Contracting Service has a Business Auto Coverage Form (BAC) covering his vehicles. He also has
a Commercial Package Policy (CPP) covering his equipment. Which one of the following would be
covered under Johnny's BAC?
Select one:
A. A bulldozer to move dirt at the jobsite
B. A truck used for hauling dirt from jobsites
C. A road resurfacing machine
D. A generator on a trailer at a jobsite - Answer-A truck used for hauling dirt from jobsites
Which one of the following losses would be covered by the Business Auto Coverage Form (BACF)?
