TRIP Client Advisory & Consultation 2

Question 1

A transportation client operates both owned trucks and leased trailers. Which coverage gap should an advisor FIRST identify in this arrangement?

Accepted Answer

Trailer interchange coverage may be absent if the client relies solely on auto liability

Answer

Trailer interchange coverage is specifically designed for non-owned trailers under a written interchange agreement, and it is commonly absent when clients assume their auto policy covers leased equipment.

Question 2

When advising a motor carrier client on the MCS-90 endorsement, which statement BEST describes its primary function?

Accepted Answer

It is a surety arrangement that ensures the public is compensated even if the policy would otherwise exclude the loss

Answer

The MCS-90 is a federally mandated endorsement that acts as a financial responsibility guarantee, compelling the insurer to pay public liability judgments even when policy exclusions would otherwise apply, with subrogation rights against the insured.

Question 3

A client asks why their motor truck cargo policy denied a claim for produce spoilage after a refrigeration unit mechanical failure. What is the MOST likely reason?

Accepted Answer

Mechanical breakdown of the reefer unit is typically excluded unless the client purchased reefer breakdown coverage

Answer

Standard motor truck cargo policies exclude losses caused by mechanical breakdown of refrigeration equipment; a separate reefer breakdown endorsement must be added to cover spoilage from unit failure.

Question 4

A TRIP advisor is reviewing a client's fleet safety program. Which metric is MOST directly linked to the client's commercial auto loss ratio?

Accepted Answer

Hours-of-service compliance rates among employed drivers

Answer

Hours-of-service compliance directly affects driver fatigue-related accidents, which are a primary driver of commercial auto losses and thus the insurer's loss ratio for the account.

Question 5

A client requests a certificate of insurance naming a shipper as an additional insured on their cargo policy. What should the advisor clarify?

Accepted Answer

Cargo policies are first-party coverages and typically do not extend additional insured status in the same manner as liability policies

Answer

Motor truck cargo policies are first-party property coverages, and additional insured endorsements are not routinely available; advisors must clarify the distinction between liability and cargo policy structures.

(TRIP) Transportation Risk and Insurance Professional Practice Test

(TRIP) Transportation Risk and Insurance Professional Practice Test

TRIP Client Advisory & Consultation 2