Chauffeur License Insurance & Liability Requirements 2

Question 1

Which type of liability coverage pays for injuries to passengers injured in your chauffeured vehicle?

Accepted Answer

Bodily injury liability

Answer

Collision coverage

Answer

Uninsured motorist coverage

Answer

Medical payments coverage

Question 2

A chauffeur company operates 8 vehicles for hire. Under the FMCSA, what minimum liability insurance is generally required for vehicles with a seating capacity under 16 passengers?

Accepted Answer

$1,500,000 per occurrence

Answer

$100,000 per occurrence

Answer

$300,000 per occurrence

Answer

$5,000,000 per occurrence

Question 3

What does 'occurrence-based' liability insurance mean for a chauffeur operator?

Accepted Answer

Coverage applies only during the policy term when the incident occurred

Answer

Coverage is billed per trip

Answer

Coverage resets each time a new passenger boards

Answer

Coverage applies only in the state where the policy was issued

Question 4

A passenger slips and falls while boarding your limousine. Which coverage would most likely apply to their medical expenses?

Accepted Answer

Bodily injury liability or medical payments coverage

Answer

Comprehensive coverage

Answer

Collision coverage

Answer

Property damage liability

Question 5

Why must chauffeur operators carry higher liability limits than personal auto drivers?

Accepted Answer

They carry paying passengers, creating greater legal exposure and potential for multi-claimant lawsuits

Answer

State DMV requires all commercial drivers to pay more

Answer

Their vehicles are more expensive to repair

Answer

Higher limits are only required in certain states

Question 6

Which insurance term refers to the maximum amount an insurer will pay for all claims during a policy period?

Accepted Answer

Aggregate limit

Answer

Per-occurrence limit

Answer

Deductible

Answer

Retention limit

Question 7

If a chauffeur's insurance policy lapses, what immediate consequence typically occurs under most state regulations?

Accepted Answer

The chauffeur license or operating authority may be suspended immediately

Answer

A warning letter is sent and the driver has 30 days to renew

Answer

The driver must only pay a fine

Answer

Coverage continues for 10 days under a grace period in all states