Business Auto Coverage Flashcard

Front

Which symbol in the Business Auto Policy provides coverage for any vehicle used for business purposes, whether owned, hired, or non-owned?

Back

Any auto the insured uses, whether owned or not

Answer explanation

The correct choice is 'Any auto the insured uses, whether owned or not' because it provides the broadest coverage for all vehicles used for business, including owned, hired, and non-owned vehicles.

Front

Which situation is NOT covered under liability coverage for a temporary substitute vehicle? Options: A vehicle used while the owned auto is in repair, A vehicle borrowed from a family member, A vehicle rented by the insured, A vehicle lent by a service shop.

Back

A vehicle borrowed from a family member

Answer explanation

Liability coverage for a temporary substitute does not cover a vehicle borrowed from a family member, as it typically applies to rentals or vehicles from service shops while the owned vehicle is in repair.

Front

Maximum load capacity for trailers covered under Lily's liability insurance?

Back

2,000 pounds

Answer explanation

Lily's liability insurance covers trailers with a maximum load capacity of 2,000 pounds. This ensures she is adequately protected while towing, making 2,000 pounds the correct choice.

Front

Which type of vehicle is considered 'non-owned' when employees use their own cars for company errands?

Back

A vehicle not owned or registered in the name of the insured

Answer explanation

A vehicle not owned or registered in the name of the insured is considered 'non-owned' because it refers to personal vehicles used for business purposes, unlike those owned or leased by the business.

Front

What type of insurance coverage should Emma consider for rented, leased, or borrowed vehicles for business use?

Back

Liability coverage for hired, leased, rented, or borrowed vehicles

Answer explanation

Emma should consider liability coverage for hired, leased, rented, or borrowed vehicles, as this will protect her business from potential liabilities when using vehicles that are not owned by her.

Front

What is the standard deductible Sophia would need to pay per covered auto per loss after a hailstorm damage claim on her comprehensive car insurance policy?

Back

$500

Answer explanation

Sophia's comprehensive coverage typically has a standard deductible of $500 for claims like hail damage. Therefore, she would need to pay $500 per covered auto per loss.

Front

Which payment is NOT a supplementary payment under liability coverage? Options: Claims expenses the insurer incurs, Cost of bail bonds up to $2,000, Loss of earnings up to $500 per day, Interest that accrues after a judgment.

Back

Loss of earnings up to $500 per day

Answer explanation

The correct choice is 'Loss of earnings up to $500 per day' because it is not considered a supplementary payment under liability coverage, while the other options are covered expenses.

Front

Maximum daily limit for transportation expenses due to theft of a covered vehicle?

Back

$20

Answer explanation

The insurance policy specifies a maximum daily limit for transportation expenses due to theft. In this case, the correct answer is $20, which is the limit set for such expenses while the vehicle is missing.

Front

Which of the following is NOT considered mobile equipment? Options: Passenger cars, Farm machinery, Bulldozers, Forklifts

Back

Passenger cars

Answer explanation

Passenger cars are primarily designed for personal transportation and are not classified as mobile equipment, unlike farm machinery, bulldozers, and forklifts, which are used for specific operational tasks.

Front

What is the primary focus of a DoK Level 1 question where Scarlett is asked to list the capitals of different countries?

Back

Recall of information or use of simple procedures

Answer explanation

The primary focus of this DoK Level 1 question is the recall of information, as Scarlett is asked to list capitals, which requires simple memorization rather than complex problem-solving or reasoning.