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47 Cards in this Set
- Front
- Back
employers nonownership liability |
employer's liability for its employees' operation of their autos in the employer's business |
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commercial package policy (CPP) |
policy that covers 2 or more lines of business by combining ISO's commercial lines coverage parts |
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Monoline policy |
policy that covers only one line of bisiness |
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garagekeepers coverage
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coverage for damage to cusomers' auto left in the named insured's care while the insured is attending, servicing, repairing, parking, or storing them
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3 basic categories of commercial auto loss exposures |
1. liability loss exposure 2. property loss exposures 3. personal loss exposures |
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Most common way a business can incur auto liability |
through negligent injury of persons or damages to property by an employee operating an auto |
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ID situations in which an organization can become liable for injury or damage to others that results from non owned auto
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* employee use his own auto to further an employer's business
* organization hires autos from other organizations |
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Purpose of garagekeepers coverage |
insure loss to customer's auto while they are in the custody of the insd auto dealer |
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Describe the main consequences of damage to an auto from the perspective of the auto's owner |
main consequences of damage to an auto are decrease in auto value and loss of use until it is repaired |
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Describe the various commercial auto coverages that cover personal loss exposures arising from auto accident |
auto medical payments coverage, personal injury protection coverage, and uninsured motorists coverage cover personal loss exposures arising from auto accident |
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Types of insureds are eligible for the business auto coverage form |
any organization other than auto dealers and motor carriers are eligible for the business auto coverage form |
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purpose of adding endosment to commercial auto coverage form |
* endosment used to add coverage * designate additional insured * add or omit exclusions * bring standard coverage form into conformity with the state |
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numerical symbol sustems used to indicate covered autos under the Business Auto Coverage Form |
uses nymbers to indicate covered autos. 1 or more of the numbers entered beside each coverage listed int he policy scheduled to indicate which autos are covered |
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Symbol 1 |
any auto |
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symbol 2 |
owned autos only |
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symbol 3 |
owned private passenger autos only |
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symbol 4 |
owned autos other than private passenger autos only |
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symbol 5 |
owned autos suject to no fault
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symbol 6 |
owned autos subject to a compulsorty uninsured motorists law |
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symbol 7 |
specifically described auto
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symbol 8 |
hired autos only |
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symbol 9 |
nonowned autos only |
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symbol 19 |
mobile equipment subject to compulsory or financial responsibility or other motor vehicl insurance law only
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newly acquired autos symbol 1-6 or 19 vs symbol 7 |
if symbols 1-6 or 19 is used, newly acquired auto s of the type are automatically covered.
if symbol 7 used, newly acquired autos are covered from acquisition only if inrer insures all autos owned by named insd |
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situation where symbol 19 is useful |
when insured has coverage through symbol 7 |
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3 distinct duties that an insurer has under the business auto coverage form liablity coverage agreement |
1. duty to pay damages 2. duty to pay covered polution cost or expense 3. duty to defend the insured |
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what determines whether a vehicle qualifies as a covered auto under the business auto form |
depends on what coverage symbolss re indicated in the schedule of coverages adn what covered autos are listed in the business auto dec |
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identify the circumstances under which business auto coverage form will cover pollutions cost or expense |
for pollution cost to be covered under the business auto, it must be caused by an accident and must result from the ownership or use of the covered auto. also the accident must result in BI or PD |
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Who is an insured under the business auto policy |
named insured. anyone other than named insured is insured while using the named insured's permission a covered auto woned, hired, or borrowed by the named insured |
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identify the 6 supplementary payments business auto liability coverage provide |
1. all expenses incured by the insurer 2. up to $2,000 for the cost of bail bonds required bc of a covered accident 3. cost of bonds to release attachments in any suit against the insd that the insurer defends 4. all reasonable expenses incurred by the insured at the insurer's request 5. all court costs taxed against the insured in any suit agaings the insured defended by the insurer 6. all interest on the full amount of any judgment that accrues after entry of the judgment in any suit against the insd that insurer defends |
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categories of exclusions in the business auto |
* expected or intended injury and contractual liability exclusions * workers comp and related exclusions * care, cusoty, or control exclusiions * exclusions related to loading and unloading * operations and completed operations exclusions * pollution, war, and racing exclusion |
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3 basic physical damage coverages from which the insd may choose under the business auto form |
* collision coverage * comprehensive coverage * specified cause of loss coverage |
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what is included in the business auto collision coverage |
collision coverage insures direct and accidental loss to a covered auto caused by collision with another object |
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what is included in the business auto comprehensive coverae |
covers direct and accidental loss to a covered auto by any covered peril except collision |
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examples of perils insured under business auto specified cause of loss coverage |
fire, lightning, explosion, theft, wind, hail, earthquake, flood, mischief, vandalism, etc. |
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examples of types of electronic equipment excluded under business auto |
* tapes, records, discs, or similar devices * radar detectors, laser detectors, etc. * any equipment regardless of whether it is permanently installed, that reproduces audio, visual, or data signals * any accessories used with the previously described equipment |
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describe business auto determination of the most of the nsurer will pay for physical damage loss |
* actual cash value of the property * cost of repairing or replacing the property |
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insured's duties after a loss |
*give prompt notice os loss * cooperate with the insurer * send insurer copes of an notices or legal papers * sugmit to physical examinations by physcians selected by insurer * authorize insurer to obtain medicl reports |
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describe insurer's loss payment options with regard to damagedd or stolen property under business auto |
* pay to repair/replace the property * return the property at the expense of insurer and repair any damage caused by theft * keep all of the property and pay and agreed value |
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describe insurer's right known as subrogation |
subrogation entails insured's right to recover a loss from some other party. if insurer pays the the loss, it is entitled to take tover the insured's right of recovery
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purpose of employees as insureds endorsment |
to cover employees of the named insured while they are using covered auto that named insured does not own, hire, or borrow in the named insured's business |
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purpose of employee hired autos endorsement |
to cover employees of the named insured as insureds while operating autos rented in an employee's name with named insured's permission |
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why underwriter might want to attach the State Amount Insurance endorsment to a business auto form |
when underwriter want to limit the insurer's liability for physical damage loss. might be done on a high valued specialized vehicle |
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purpose of uninsured motorists coverage |
provides source of recovery for occupants of a covered auto who was inufured by an at fault motorist who does not have BI coverage |
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when will sole proprietor might purchase uninsured or underinsured motorist coverage in conjuction with business auto |
might purchase uninsured motorist coverage is he has chosen not to be covered by workers compensation |
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individual named insured endorsment affect business auto liability coverage |
extends liability coverage to (1) resident relatives while using any auto the named insured ownes of the private passenger type that is covered auto for liab cov and (2) named insured and resident relatives while using auto that are not owned by them |
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Drive Other Car Coverage - Broaden Coverage for Named Individuals endosement |
when named insured has provided company cars to executive officers adn those individuals do not have their own personal auto insurance to cover them or their family members while driving autos that are not covered under employer's policy |