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10 Cards in this Set
- Front
- Back
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Which of the following statements is correct?
I. The Business Auto Policy uses 10 symbols to define covered vehicles II. Symbols 30 and 31 apply to the Garage Policy.
A. I only. B. II only. C. Neither I nor II. D. Both I and II. |
D. Both of these statements are correct regarding the symbols used to trigger the coverage. |
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Which of the following is not a Commercial Auto endorsement?
A. Drive Other Car. B. Change Other Driver. C. Individual Named Insured. D. Mobile Equipment. |
B. There is not an endorsement called "change other driver". |
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Under the Business Auto Policy, each of the following is true about classification of "covered autos" EXCEPT:
A. "Any auto" is the broadest coverage classification. B. An insured may select different classifications for different coverages. C. All classes of newly acquired autos are automatically covered. D. "Hired autos" includes autos the insured leases, hires, rents or borrows. |
C. Not all classes of newly acquired autos are automatically covered. The symbols dictate the type of vehicles that would be covered. |
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According to the Business Auto Definitions, an "accident":
A. Includes continuous or repeated exposure to the same conditions. B. Must be sudden and unexpected. C. Must be unexpected and unpreventable. D. Is any event that causes injury or damage. |
A. In the business auto definitions the definition of an "accident" includes continuous or repeated exposure to the same conditions. |
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Joseph Young, who is insured under a Business Auto policy, is involved in an accident. He and the insurance company disagree on the amount to be paid for the damage to his car. Under the terms of the policy, which of the following statements is true:
A. Each party engages an appraiser, and the appraisers will select an umpire. B. Mr. Young must accept the insurance company’s estimate. C. Each party engages an appraiser, and the appraisers will decide the amount. D. The estimates of both parties will be averaged. |
A. The appraisal clause works the same way in other insurance policies. Each party hires an appraiser and pays for their services. If they cannot agree then an umpire is chosen who attempts to settle the issue of the value of the damaged property. The two parties split the cost of the umpire. |
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Under the Truckers Policy, which of the following is an additional coverage?
A. Combined additional coverage B. Cargo coverage. C. Drive other trailer coverages. D. Trailer interchange. |
D. The trailer interchange coverage is unique to the trucker’s policy. |
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Which of the following is considered a "garage operation"?
I. Ownership, maintenance or use of garage premises. II. Sale of products or services in connection with garage operations. III. Ownership or maintenance of covered autos. IV. Production or support of racing or competitive operations.
A. I and II only. B. I, II, and III only. C. I and III only. D. I, II, III, and IV. |
B. The supporting of racing or competitive operations is not covered by the garage policy. |
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Which of the following would be covered under a garage liability policy?
A. Damage to property the insured is transporting to another location. B. The use of covered autos leased to another party except as a replacement for a car under repair. C. Products and completed operations. D. Covered autos used in organized racing. |
C. Like the CGL policy, the garage policy includes products and completed operations coverage. |
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Which of the following pollution losses would be covered under the garage liability policy?
I. Escape of toxic sludge from a dumpsite the named insured utilizes to store garage waste. II. Pollution of a creek caused by a gasoline leaking from the ruptured fuel tank of a covered truck following a collision with another truck.
A. I only. B. Both I and II. C. Neither I nor II. D. II only. |
D. Gasoline leaking from a gas tank when involved in an accident is a covered pollution expense. |
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**** Garage Keepers coverage excludes all of the following losses EXCEPT:
A. Loss to a high-value stereo system permanently installed in a customer’s auto. B. Loss to CDs from a covered auto. C. Faulty work performed by a mechanic. D. Theft of equipment from a covered auto by a garage employee. |
A. The purpose of the garage keepers legal liability form is to pay on behalf of the insured sums they for which they are legally liability as a result of being a bailee. The purpose of the form is to cover customer property. |
