CAIB 3 Chapter 3 Questions and Answers 100%
Solved
Identify the coverage limits and the maximum time provided for Loss of Use under Section C
$25-$30 per day
30 days
Identify the endorsement available for section C if Loss of use of theft is not adequate for the
insured's needs SEF No. 20 loss of use endorsement
Identify two reasonable expenses covered under the endorsement identified above 1.
The rental of a substitute automobile
2. Taxicabs or public means of transportation
Identify when coverage starts under this endorsement 1. Coverage starts immediately
when the damage is such that the automobile cannot be operated under its own power
2. When the automobile is stolen coverage begins on the day following the report of the theft to
the insurer or to the police
,Identify how limits are set under this endorsement Coverage limits are set at a certain
amount per day with a maximum limit per occurrence
Identify four types of vehicles to which this endorsement is not generally available 1.
Taxis
2. Tractors
3. U-drives
4. Certain trailers
Identify one use of an automobile which is not deemed to be the renting or leasing of the
automobile to another The use by an employee of his automobile on the business of his
employer and for which he is paid
When would a SEF 5c be used When a rental firm leases a vehicle to an individual or
business for 30 days or less
, When would a SEF 5 be used When a vehicle is leased by an individual or business for
longer than 30 days
When would a SEF 5d be used To indemnify the lessor the lessee sold the vehicle and
disappeared
When would a SEF 8 be used To indemnify the lessor when the lessee fails to maintain
the required insurance as stated in the lease
If an individual lessee does not own their own vehicle and wishes to rent a vehicle for less than
30 days they can purchase insurance coverage from the lessor. However if the lessee does own
their vehicle and wishes to rent a vehicle for less than 30 days identify two coverages which are
automatically extended from the lessee's own insurance to the rented vehicle 1. Third-
party liability
2. Accident benefits
Identify the endorsement to be added to the individual lessee's SPF #1 to provide legal liability
for damage to non-owned automobiles SEF No. 27 legal liability for damage to non-
owned automobiles endorsement
Solved
Identify the coverage limits and the maximum time provided for Loss of Use under Section C
$25-$30 per day
30 days
Identify the endorsement available for section C if Loss of use of theft is not adequate for the
insured's needs SEF No. 20 loss of use endorsement
Identify two reasonable expenses covered under the endorsement identified above 1.
The rental of a substitute automobile
2. Taxicabs or public means of transportation
Identify when coverage starts under this endorsement 1. Coverage starts immediately
when the damage is such that the automobile cannot be operated under its own power
2. When the automobile is stolen coverage begins on the day following the report of the theft to
the insurer or to the police
,Identify how limits are set under this endorsement Coverage limits are set at a certain
amount per day with a maximum limit per occurrence
Identify four types of vehicles to which this endorsement is not generally available 1.
Taxis
2. Tractors
3. U-drives
4. Certain trailers
Identify one use of an automobile which is not deemed to be the renting or leasing of the
automobile to another The use by an employee of his automobile on the business of his
employer and for which he is paid
When would a SEF 5c be used When a rental firm leases a vehicle to an individual or
business for 30 days or less
, When would a SEF 5 be used When a vehicle is leased by an individual or business for
longer than 30 days
When would a SEF 5d be used To indemnify the lessor the lessee sold the vehicle and
disappeared
When would a SEF 8 be used To indemnify the lessor when the lessee fails to maintain
the required insurance as stated in the lease
If an individual lessee does not own their own vehicle and wishes to rent a vehicle for less than
30 days they can purchase insurance coverage from the lessor. However if the lessee does own
their vehicle and wishes to rent a vehicle for less than 30 days identify two coverages which are
automatically extended from the lessee's own insurance to the rented vehicle 1. Third-
party liability
2. Accident benefits
Identify the endorsement to be added to the individual lessee's SPF #1 to provide legal liability
for damage to non-owned automobiles SEF No. 27 legal liability for damage to non-
owned automobiles endorsement
