Underwriting Motor Carrier And Garage Coverage

Front 1

A Garage

Back 1

any business that sells, services, or parks autos

Front 2

six sections of the garage coverage form

Back 2

1. covered auto
2. liability coverage
3. garagekeepers' coverage
4. physical damage coverage
5. garage conditions
6. definitions

Front 3

liability coverage for motor carrier and garage

Back 3

extends to the insured's legal liability for BI and PD caused by an accident and resulting from garage operations, subject to extensive exclusions

Front 4

there are 2 aggregate limits

Back 4

1. applicable to losses involving the ownership, maintenance, or use of covered autos
2. applicable to losses that do not involve the ownership, maintenance, or use of covered autos

Front 5

A Motor carrier

Back 5

any person or organization that provides auto transportation to further a commercial enterprise

Front 6

Common Carrier

Back 6

someone who offer transportation services to the general public

Front 7

Contract carrier

Back 7

someone who transport property for those with whom they have contracted to transport property

Front 8

private carrier

Back 8

someone who transports their own property

Front 9

owner-operators

Back 9

use their own trucks to haul property for motor carriers that hire them
the motor carrier generally provides the liability insurance

Front 10

bobtail and deadhead coverage

Back 10

covers the owner-operator's liability while bobtailing (driving w/out a trailer) and deadheading (hauling an empty trailer)

Front 11

bobtailing

Back 11

driving w/out a trailor

Front 12

deadheading

Back 12

hauling an empty container

Front 13

who is covered under the motor carrier coverage form

Back 13

owners and lessors of trailers hired or borrowed by the named insured are covered while the trailer is connected to a covered power unit or while the trailer is not connected to a power unit but is being used only in the named insured's business

lessors of autos other than trailers are covered while those autos are leased to a named insured under written agreement that does mot contain a hold harmless agreement and while the autos are used in the insured's business as a motor carrier for hire

Front 14

other insurance - operation rights

Back 14

- gives motror carriers operating authority over specific routes
- the insurance on whos operating rights are being used are primary for all insurance and the other motor carrier is excess
- autos hired or borrowed from the named insured recieve excess coverage under the named insured policy unless a written agreement requires the named insured to hold the lessee harmless, then they are primary
- autos hired or borrowed by the named insured receive excess coverage under the named insured's policy unless a written agreement requires the named insured to hold the lessee harmless, then its primary

Front 15

trailer interchange agreement

Back 15

a contract under which 2 motor carriers agree to swap trailers. Each agree to indemnify the other for damage to the others trailer while in the borrowing carriers possession

Front 16

trailer interchange coverage

Back 16

covers the borrowing carrier's liability for damage to others trailers

Front 17

MCS90 Endorsement

Back 17

this endorsement pays for liability damages, up the stated limit, caused by negligence in operation, maintenance, or use of any motor vehicle subject to the Motor Carrier Act, even if the vehicle is not described in the policy

Front 18

The Motor Carrier Act of 1980

Back 18

requires certain vehicles to carry minimum limits of insurance coverage to satisfy public liability and environmental restoration claims that may arise from accidents

Front 19

certificate of public convenience and necessity

Back 19

specifies the goods/services the carrier may transport, the territory it can serve, and sometimes the routes it may travel

Front 20

backhaul

Back 20

transport goods for others when the carrier would otherwise be empty

Hint 20

my dad sending his truck in a empty container

Front 21

Central Analysis Bureau (CAB)

Back 21

clearinghouse for financial information on the motor carriers.
they indicate the insured's financial ability to maintain equipment, replace vehicles, provide customer service, hire quality employees, and maintain consistent operations

Front 22

pricing

Back 22

1. specific auto basis
2. cost-of-hire basis
3. gross receipts basis

Front 23

specific auto basis

Back 23

uses commercial lines manual rules to classify and rate autos, whith the addition of special indusrty classification factors for truckers

Front 24

cost-of-hire basis

Back 24

rates hired autos, whether used in the insured's trucking operations or not and based on the cost of hire for each state in which the insured does business

Front 25

truckers-named lessee as insured endorsement

Back 25

if the lease agreement between two motor carriers requires the lessor to provide primary insurance to it commercial auto policy

Front 26

truckers-excess coverage for the named insured and named lessors for leased autos endorsement

Back 26

if the lease agreement between two motor carriers requires the lessor to provide primary insurance the lessee will add this to its motor carrier coverage form

Front 27

gross receipts basis

Back 27

this is used when the insurer expects frequent changes in the policy during coverage period

Front 28

gross receipts

Back 28

the total amount earned for shipping or transporting property whether collected or not

Front 29

rates for trailer interchange agreements

Back 29

they are rated acording to how many owned and nonowned trailers involved. if trailers are exchanged equally there is no premium charged, if trailers are exchanged unequally, the party with the greater liability exposure pays an additional premium

Front 30

physical damage coverage

Back 30

there is no coverage for any covered auto while in anyones else's possession under a written interchange agreement

Front 31

underwriting consideration for physical damage coverage

Back 31

1. fleet management systems
2. collision - avoidance systems
3. symbol 70
4. target commodities

Front 32

fleet management systems

Back 32

provides information about a vehicle's use and location by means of computer-based electronic vehicle monitoring equipment

Hint 32

GPS

Front 33

collision - avoidance systems

Back 33

alert drivers to obstacles in the paths of their vehicles. they help drivers avoid side-impact and rear-end collisions

Front 34

symbol 70

Back 34

suggests one of the carriers with which the insured exchanges trailers is having trouble getting insurance

Front 35

target commodities

Back 35

susceptible to theft

Front 36

garage coverage form

Back 36

meets the unique exposures of auto dealers, garages, service stations, repair shops, and parking facilities by combinding premises and opertions liability, products and completed operations liability, auto liability and auto physical damage coverage into one contract

Front 37

garage operations

Back 37

all operations necessary or incidental to a garage business (including ownership, maintenance, or use of a covered auto, garage locations, and ajoining accessess and roads)

Front 38

limits

Back 38

subject to per accident limit

Front 39

underwriting consideration for
liability classifications:

Back 39

insured business classified as dealer or nondealer

Front 40

an auto deal is

Back 40

someone who sells new or used vehicles

Front 41

a franchised dealer is

Back 41

someone that has a contracted w/ a manufacturer to sell particularly its new autos

Front 42

a nonfranchised deals is

Back 42

someone who normally sells only used cars

Front 43

non dealer

Back 43

businesses that dont deal autos like
repair shops, service stations,storage garages, public parking places, and tow truck operators

Front 44

underwriting consideration for
coverage symbols:

Back 44

symbol 21 (any auto) is reserved for dealers

symbol 29 (nonowned autos used in your garage business) provides nondealers w/ liability protection for the maintenance and operation of customers cars

Front 45

underwriting consideration for
insureds:

Back 45

similar to those under the BAC except the customers of dealers are only covered when the customer is uninsured or underinsured

Hint 45

if you go the HWP to test driver their car and you get in an accident you insurance will pay. If you dont have enough insurance/ no insurance to cover it then the garage insurance will cover

Front 46

underwriting consideration for
driver exposure:

Back 46

A. employed drivers - drivers use
1. owned vehicles for business and nonbusiness use
2. nonowned vehicles for business use

B. nonemployed drivers
employees family members may drive vehicles, customers drive loaners and their own vehicles on test drives, subcontractors drive customers vehicles, vehicles loaned to schools or other organizations are driven by several drivers

Front 47

underwriting consideration for
types of vehicles

Back 47

1. tow trucks
check the extent of use and make sure drivers are properly trained, experienced and licensed
2. haulaways
transport other vehicles, check the number of haulaways, their physical condition, their drivers experience, and usage

Front 48

underwriting consideration for
pricing

Back 48

dealers are priced on rating unit

Front 49

the rating unit

Back 49

represents a person or part of a person, based on the class of operator.

Front 50

broadened coverage - garage endorsement

Back 50

broadens garage liability coverage in eight areas:
1. personal injury and advertising liability
2. limited worldwide liability
3. host liquor liability
4. fire legal liablity,
5. incidental medical malpractice liability
6. nonowned watercraft liability
7. additional persons insured
8. automatice coverage for newly aquired garage business

Front 51

medical payments endorsement

Back 51

provides medical payment coverage for auto exposure only, garage locations and operations exposures only or both