Commercial Auto Insurance: Multiple Choice Questions and Answers, Exams of Biology

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A trucking business swaps trailers with other carriers. What coverage is necessary to cover loss to the others trailer while in the borrowers possession? A. Owner operator motor carrier coverage B. Trailer interchange coverage C. Interstate carrier coverage D. Mobile equipment - answer B. Trailer interchange coverage Because truckers frequently hire or borrow trailers from others with a written trailer interchange agreement, they need coverage for the trailer while in their possession to cover the liability imposed upon them because of the agreement. Tom's truck service's vehicle is stolen. The policyholder may obtain coverage for transportation expenses subject to which of the following limits? A. $15 per day; $300 maximum B. $15 per day; $450 maximum C. $25 per day; $450 maximum D. $20 per day; $600 maximum - answer D. $20 per day; $600 maximum The physical damage section includes a coverage extension that would pay for substitute transportation, up to $20 per day for a maximum maximum of $600, after the theft of a covered auto

Who is not an insured for liability on a BAP? A. The owner of a car the insured borrows B. Anyone using a covered auto with permission C. Anyone liable for the conduct of the insured D. The named insured and any covered auto - answer A. The owner of a car the insured borrows Which of the following statements is true regarding a mobile equipment endorsement in commercial auto policies? A. The endorsement is automatic B. Liability coverage is not provided an equipment that is being towed C. Mobile equipment is covered for property insurance D. The endorsement is available for additional premium - answer D. The endorsement is available for additional premium The mobile equipment endorsement will provide auto coverages to mobile equipment upon payment of additional premiums A trucking company owns a large fleet of trucks that transport oil across state lines. According to the financial responsibility requirements set by the motor carrier act of 1980, what is the minimum amount of insurance the company must carry on vehicles that transport oil? A. $500, B. $750, C. $1 million D. $5 million - answer C. $1 million The minimum requirements for haulers of oil in certain categories of hazardous waste in interstate commerce is $1 million

With regard to the commercial auto policy, all of the following autos would be classified as "owned autos", except A. A vehicle titled to the named insured but not listed on the declaration page of the policy B. A vehicle furnished for used to an insured by an auto repair shop as a temporary substitute while the insured's covered auto is being serviced C. A vehicle titled to another entity and furnished and available to an insured for the regular use D. A vehicle titled to the named insured and listed on the declaration page of the policy - answer B. A vehicle furnished for used to an insured by an auto repair shop, as a temporary substitute, while the insured's covered auto is being serviced. A "temporary substitute" vehicle, while "covered" under a commercial auto policy, is classified as a nonowned auto. The garage coverage form is used to insure A. Businesses that use automobiles to transport property of others or their own property B. All types of organizations other than auto businesses and motor carriers C. Owner operators who use their own trucks to haul property for the motor carriers that hire them D. Auto businesses, such as auto dealers, service stations, and auto repair shops. - answer D. Auto businesses, such as auto dealers, service stations, and auto repair shops. The garage coverage form is used for businesses that regularly have autos of others in their care, custody or control. These types of businesses would include auto dealerships, auto repair and service garages, and businesses that park while vehicles for others.

To comply with the requirements for insurance for public liability under the motor carrier act of 1980, which endorsement is added to more carrier coverage form? A. MCS- B. Garage C. MCS- D. MCS-90 - answer D. MCS- The Federal motor carrier safety administration(FMCSA) has developed an endorsement, MCS-90, that must be attached to all motor carriers' policies under its jurisdiction. This endorsement ensures that motor carriers comply with the federally mandated coverage for public liability (the motor carrier act of 1980) A commercial auto coverage form that is designed for Insureds engaged in the business of transporting goods for others is a A. Gate keepers coverage form B. Cargo carriers coverage form C. Truckers coverage form D. Commercial carrier coverage form - answer C. Truckers coverage form The truckers coverage form was developed to handle the special insurance needs of businesses that use their vehicles to haul goods for others All of the following are optional coverages that may be attached to a garage policy except A. Personal and advertising injury B. Fire legal liability C. Incidental medical malpractice D. Owned watercraft liability - answer D. Owned watercraft liability

The additional coverages include the following: personal and advertising injury; fire legal liability; incidental medical malpractice; limited non- owned watercraft liability; Broader host liquor liability A dealership loans a car to its customer to use while the dealership is repairing the customer's car. If the dealership has business auto physical damage coverage and a customer's automobile insurance does not cover damages to loaner cars, which of the following is true? A. The loaner vehicle is covered by the business auto policy B. No coverage is provided C. Only coverage for damage to a third-party's vehicle is provided D. The customer is personally liable - answer A. The loaner vehicle is covered by the business auto policy A dealership that provides loaner cars to customers while their vehicles are being repaired is covered under the business auto physical damage section Which one of the following symbols used in business auto coverage is correctly described? A. Symbol 2 - oh and arrows subject to no-fault B. Symbol 7- hired autos only C. Symbol 9- nonowned autos only D. Symbol 1 - owned auto only - answer C. Symbol 9- nonowned autos only Symbol 1 is used for any auto, symbol 2 is used for owned autos only, and symbol 7 is used for specifically described autos only.