Insurance MCQ

A firm that transports goods of others, rather than its own goods, would purchase a: a. Truckers Coverage Form b. Specified Peril Policy c. Truckers Liability Coverage d. Non-Owned Good Policy Answer: a. Truckers Coverage Form

All of the following are true of the Business Auto Coverage Form, except: a. Uninsured Motorist Coverage is included in Section II b. Medical payments coverage may be added by endorsement c. Coverage may be written on owned private passenger autos d. Coverage is primary on owned autos and excess on non-owned autos Answer: a. Uninsured Motorist Coverage is included in Section II

All of the following are true of the Business Auto Coverage Form, except: a. It does not include contractual liability coverage b. It covers injuries to employees c. It covers liability from mobile equipment while being towed d. It provides no-fault coverage in states that require it Answer: b. It covers injuries to employees

Which of the business auto coverage forms provides insurance for a contract carrier that transports its own goods in addition to the goods owned by others? a. Business Auto Coverage Form b. Motor Carrier Coverage Form c. Truckers Coverage Form d. Garage Coverage Form Answer: b. Motor Carrier Coverage Form

Section III of the Garage Coverage Form provides which coverage? a. Products liability b. Liability for owned vehicles that are used in the business c. Liability for garage operations d. Garagekeepers coverage Answer: d. Garagekeepers coverage

BAP liability coverage would not apply to which of the following? a. Damage to property in the insured's care b. Injury to another while driving in another state c. Bodily injury after a person is struck by a mechanical device attached to a covered truck d. Bail bonds required after an insured's accident Answer: a. Damage to property in the insured's care

Which vehicle would not be eligible for a Business Auto Coverage Form? a. A private passenger auto that is used in the business b. A forklift used in the business c. A trailer that is used to carry a backhoe d. A van that is used by a delivery firm Answer: b. A forklift used in the business

For which of the following persons is the Drive Other Car endorsement intended? a. The officers and directors of a corporation b. Individuals who do not own an auto c. Owners of school buses d. Truckers and motor carriers Answer: b. Individuals who do not own an auto

What is the name for insurance covering the amount an insured is legally obligated to pay for loss to a customer's vehicle in the insured's care? a. Garage coverage form b. Business auto coverage c. Garagekeepers coverage d. Garage product liability Answer: c. Garagekeepers coverage

The Garagekeepers Coverage of the Garage Coverage Form covers the liability of: a. Product liability exposures b. Owned vehicles that are used in the business c. Physical damage to a customer's car that is in the care and custody of an insured d. Damage to autos held for sale Answer: c. Physical damage to a customer's car that is in the care and custody of an insured

After an employee of a service station failed to tighten the oil filter, the leaking oil caused $700 in damage to the engine. Section II of a Garage Coverage Form would pay: a. $700 only if the employee is proven negligent b. Nothing c. $700 less the $250 mandatory deductible d. $700 less the $100 mandatory deductible Answer: d. $700 less the $100 mandatory deductible

Physical damage coverage under a Business Auto Coverage Form includes all of the following, except: a. Uninsured Motorist Coverage b. Comprehensive Coverage c. Specified Causes of Loss d. Collision Coverage Answer: a. Uninsured Motorist Coverage

Mobile equipment does not include which of the following? a. Vehicles that travel on crawler treads b. Resurfacing equipment mounted on a vehicle c. Farm machinery designed for off-road use d. Motor vehicles designed for road use Answer: d. Motor vehicles designed for road use

Which of the following businesses would not be eligible for coverage under the Garage Coverage Form? a. Rental car agency b. Car dealer c. Public parking lot d. Service station Answer: a. Rental car agency

Which of the following autos is covered under Symbol 9 of the Business Auto Coverage Form? a. An auto leased or hired by the insured b. An auto owned by the insured's employee while used in the insured's business c. Any auto not used in the insured's business d. An auto borrowed by the insured Answer: b. An auto owned by the insured's employee while used in the insured's business

A business individual that carries people and property belonging to the general public for a fee from one place to another is called which of the following? a. Motor carrier b. Livery carrier c. Contract carrier d. Common carrier Answer: d. Common carrier

Section II (Liability) of the Garage Coverage Form covers which of the following? a. Injuries covered by Workers' Compensation b. Property in the care and custody of the insured c. Property damage for which the insured is legally responsible d. Injuries to an employee that are caused by a fellow employee Answer: c. Property damage for which the insured is legally responsible

Which Business Auto Symbol is the most broad of all Symbols? a. Symbol 1 b. Symbol 4 c. Symbol 3 d. Symbol 2 Answer: a. Symbol 1

All of the following regarding the Garage Coverage Form are correct, except: a. It provides physical damage coverage for covered autos the named insured owns, hires, rents, leases, or borrows b. It provides coverage for product recall c. Coverage is typically written using a blanket limit of insurance d. It provides automobile liability, physical damage, and general liability insurance for auto businesses Answer: b. It provides coverage for product recall

Which coverage is not available under the Garage Coverage Form? a. Physical damage coverage b. Product liability c. Advertising liability d. Garagekeepers coverage Answer: c. Advertising liability