Auto Insurance Policies Flashcards

Which of the following coverages are provided by Business Auto Physical Damage coverage?

Answer: A,B and C

Business Auto Physical Damage coverage typically includes protection for various types of losses to covered vehicles. Specifically, it provides coverage for damage resulting from collisions, comprehensive losses (such as theft, fire, or vandalism), and transportation expenses incurred while a covered auto is out of service due to a covered loss. These three components offer broad protection for a business's fleet.

Which portion of the Garage coverage form covers liability for damage to property of others in the insured's care, custody, or control?

Answer: Garagekeepers

The Garagekeepers coverage portion of the Garage coverage form is specifically designed to cover liability for damage to customers' vehicles or other property while it is in the insured's care, custody, or control. This is crucial for businesses like auto repair shops, dealerships, or parking garages, as it protects against losses such as fire, theft, or collision that occur on their premises.

The Garage coverage form covers liability arising out of which of the following?

Answer: A and B

The Garage coverage form provides liability protection for a business arising from two primary areas. Firstly, it covers liability stemming from the ownership, maintenance, or use of covered autos, similar to a standard auto policy. Secondly, it extends to liability arising from the business's garage operations, encompassing activities like vehicle repair, servicing, or sales.

Which of the following perils are included in the Business Auto coverage form's Specified Causes of Loss coverage?

Answer: B,C and D

The Business Auto coverage form's Specified Causes of Loss coverage provides protection against a defined list of perils, offering a more limited scope than comprehensive coverage. This typically includes perils such as fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, vandalism, and the sinking, burning, collision, or derailment of a conveyance transporting the covered auto. Therefore, earthquake, flood, and theft are all included.

Which of the following statements concerning Business Auto Liability coverage are correct?

Answer: A,C and D

Business Auto Liability coverage is designed to protect the insured against financial losses from accidents involving covered autos. It covers bodily injury (BI) or property damage (PD) caused by an accident, but only for sums for which the insured is legally liable. Crucially, the BI or PD must result from the ownership, maintenance, or use of a covered auto, and it generally excludes pollution losses unless specifically endorsed.