Commercial Casualty II: Questions With Easy-to-Follow
Solutions
Your insured has an unendorsed Business Auto Coverage Form in which
liability is written using Symbol 1 (Any "Auto"). An employee, using his
personal vehicle on behalf of the business, has an at fault accident. Who is an
insured under your insured's policy? Right Ans - Only your named insured
Select the statement that most completely explains business auto liability
exposures faced by any business. Right Ans - Legal liability may result from
BI or PD arising out of ownership, operation, maintenance or use of autos
owned, and autos not owned but used in or on behalf of the business and may
include autos hired or borrowed.
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? Right Ans - 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
Which of the following is not covered under Comprehensive Coverage
provided by a Business Auto Coverage Form? Right Ans - Damage to the
business owned pickup truck when the vehicle overturns
orge 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? Right Ans - Business Auto Coverage
Form
Which of the following statements IS NOT true about workers compensation
statutes? Right Ans - Most states impose a dollar limit on medical expenses
Which of the following statements IS true about workers compensation
statutes? Right Ans - Most states have rehabilitation benefits written into
their law
, Which of the following statements IS true about workers compensation
statutes? Right Ans - Death benefits can include weekly income benefits for
the employee's eligible dependents
Which of the following statements IS true about workers compensation
statutes? Right Ans - Lost wage benefits are paid to replace the loss of
income suffered by an injured or sick employee
Four Types of Benefits Provided Under Most Workers Compensation Statutes
Right Ans - Medical Expenses, Disability Income, Rehabilitation Expenses,
Death Benefits
What are the monopolistic states? Right Ans - North Dakota, Ohio,
Washington and Wyoming.
When working with your client to selecting the coverages needed from him
Workers Compensation and Employers Liability Insurance Policy, you come to
Item 3.B. of the Information Page. You explain what is this section triggers and
how by using which of the following statements? Right Ans - It triggers
Employers Liability Insurance 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 each employee limit
Your insured buys a Workers Compensation Policy for coverage in New York
with NY listed in Item 3.A. Three months after the policy effective date, your
insured also begins work in New Jersey. New Jersey is listed in Item 3.C.
Which statement below is true about your insured's workers compensation
coverage? Right Ans - Your insured has automatic coverage in New Jersey
as long as the insurer is notified "at once" that work has begun there
As you review his insurance needs, your client asks you about the primary
functions of an Umbrella Liability Policy. Which of the following would not be
used to answer his question? Right Ans - It replaces claims expenses
incurred by the insured.
A self-insured retention can be explained to your client using which of the
following statements? Right Ans - It applies only if coverage is provided by
the Umbrella Liability Policy but not by underlying policies, and it does not
apply when coverage is in excess of the underlying policy.
Solutions
Your insured has an unendorsed Business Auto Coverage Form in which
liability is written using Symbol 1 (Any "Auto"). An employee, using his
personal vehicle on behalf of the business, has an at fault accident. Who is an
insured under your insured's policy? Right Ans - Only your named insured
Select the statement that most completely explains business auto liability
exposures faced by any business. Right Ans - Legal liability may result from
BI or PD arising out of ownership, operation, maintenance or use of autos
owned, and autos not owned but used in or on behalf of the business and may
include autos hired or borrowed.
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? Right Ans - 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
Which of the following is not covered under Comprehensive Coverage
provided by a Business Auto Coverage Form? Right Ans - Damage to the
business owned pickup truck when the vehicle overturns
orge 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? Right Ans - Business Auto Coverage
Form
Which of the following statements IS NOT true about workers compensation
statutes? Right Ans - Most states impose a dollar limit on medical expenses
Which of the following statements IS true about workers compensation
statutes? Right Ans - Most states have rehabilitation benefits written into
their law
, Which of the following statements IS true about workers compensation
statutes? Right Ans - Death benefits can include weekly income benefits for
the employee's eligible dependents
Which of the following statements IS true about workers compensation
statutes? Right Ans - Lost wage benefits are paid to replace the loss of
income suffered by an injured or sick employee
Four Types of Benefits Provided Under Most Workers Compensation Statutes
Right Ans - Medical Expenses, Disability Income, Rehabilitation Expenses,
Death Benefits
What are the monopolistic states? Right Ans - North Dakota, Ohio,
Washington and Wyoming.
When working with your client to selecting the coverages needed from him
Workers Compensation and Employers Liability Insurance Policy, you come to
Item 3.B. of the Information Page. You explain what is this section triggers and
how by using which of the following statements? Right Ans - It triggers
Employers Liability Insurance 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 each employee limit
Your insured buys a Workers Compensation Policy for coverage in New York
with NY listed in Item 3.A. Three months after the policy effective date, your
insured also begins work in New Jersey. New Jersey is listed in Item 3.C.
Which statement below is true about your insured's workers compensation
coverage? Right Ans - Your insured has automatic coverage in New Jersey
as long as the insurer is notified "at once" that work has begun there
As you review his insurance needs, your client asks you about the primary
functions of an Umbrella Liability Policy. Which of the following would not be
used to answer his question? Right Ans - It replaces claims expenses
incurred by the insured.
A self-insured retention can be explained to your client using which of the
following statements? Right Ans - It applies only if coverage is provided by
the Umbrella Liability Policy but not by underlying policies, and it does not
apply when coverage is in excess of the underlying policy.
