Insurance & Liability Requirements Flashcards
7 cards from real Chauffeur License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Insurance & Liability Requirements flashcards as text
What is the purpose of a 'certificate of insurance' in the chauffeur industry?
Answer: It is proof that a valid insurance policy exists and summarizes key coverage details
A certificate of insurance is a summary document issued by the insurer that verifies coverage is in place without being the actual policy contract.
A limousine company adds a new vehicle to its fleet mid-policy. What should the operator do regarding insurance?
Answer: Notify the insurer immediately to add the vehicle to the policy
Operators must notify their insurer promptly when adding vehicles to ensure the new vehicle is properly covered under the commercial policy.
Which coverage protects a chauffeur company when a passenger's luggage is damaged or stolen from the vehicle?
Answer: Cargo or baggage insurance
Cargo or baggage insurance specifically covers a passenger's personal property that is damaged, lost, or stolen while in the care of the chauffeur.
Under a commercial auto policy, what does 'named insured' mean?
Answer: The entity or person specifically identified in the policy as the policyholder
The named insured is the specific business or individual listed on the declarations page as the primary policyholder with full policy rights.
A client sues a chauffeur company claiming the driver was negligent and caused an accident. Which coverage responds to the legal defense costs?
Answer: Liability insurance, which covers both damages and defense costs
Commercial liability insurance covers both the damages awarded to claimants and the legal defense costs incurred by the insured.
What is 'garage keeper's liability' insurance, sometimes relevant to chauffeur operations?
Answer: Coverage for physical damage to a customer's vehicle while in the chauffeur company's care
Garage keeper's liability covers damage to a client's vehicle while it is in the care, custody, or control of the chauffeur or transportation company.
Why is 'hired and non-owned auto' (HNOA) coverage important for chauffeur businesses that sometimes rent vehicles?
Answer: It covers liability when employees drive rented or personally-owned vehicles on company business
HNOA coverage fills the gap in a commercial auto policy when employees use rented or their own vehicles for business purposes.