CRIS - Misc Lines - Ch. 2 - Automobile
Liability Insurance
Section 2. 1 - Automobile Liability Insurance - correct answer ✔....
The ownership or operation of an auto exposes a contractor to potentially
large financial losses.
An auto is defined as: - correct answer ✔a land motor vehicle, trailer, or
semi-trailer designed for travel on public roads
The contractor might be held legally liable to others for _____________ or
____________ arising out of an auto, or the contractor's vehicle(s) could be
lost, damaged, or destroyed by any number of perils. - correct answer
✔bodily injury or property damage
Theft of trucks at unattended construction sites is a big concern for
contractors. Most contractors insure these loss exposures by purchasing a
___________________. - correct answer ✔business auto policy (BAP)
Section 2. 2 - Major Coverages - correct answer ✔...
The BAP offers a variety of coverages, including...? - correct answer
✔liability
physical damage
medical payments
no-fault
uninsured/underinsured motorists (UM/UIM)
,__________ is the legally enforceable obligation to pay a monetary award for
injury or damage caused by one's negligent or statutorily prohibited action. -
correct answer ✔"Liability"
The Liability policy insures against legal liability arising from the
________________________________ of covered autos. - correct answer
✔ownership, operation, or use
_______________________ coverage deals with the exposure of direct and
accidental loss of, or damage to, an insured's own vehicle. - correct answer
✔Physical damage
The major physical damage coverages include ....? - correct answer
✔specified causes of loss, comprehensive, and collision.
Physical Damage - Specified Causes of Loss:
Specified causes of loss coverage applies to damage from specific named
perils, such as: - correct answer ✔fire, lightning, theft, windstorm, flood, and
vandalism.
Purchasing _______________________ is a less broad, and thus less
expensive, alternative to comprehensive coverage. - correct answer
✔Specified Causes of Loss
Contractors commonly purchase specified causes of loss coverage to apply to
their...? - correct answer ✔fleet of vehicles.
They may also prefer this coverage for older private passenger autos because
of cost considerations.
,Physical Damage - Comprehensive:
When comprehensive coverage applies, the policy will pay for...? - correct
answer ✔direct and accidental loss or damage from any cause except
collision or overturn, subject to specified exclusions.
Contractors frequently procure _________________ coverage to insure
owned private passenger type vehicles. - correct answer ✔Comprehensive
When an auto is covered by both _____________ and _____________
coverage, it is covered for all sources of direct and accidental loss or damage
except those specifically excluded, such as war, nuclear hazard, and wear
and tear. - correct answer ✔comprehensive and collision
Examples of some types of loss that could be covered under comprehensive
coverage that in most circumstances would not be covered under specified
causes of loss coverage. - correct answer ✔- Sinkhole—a contractor's truck
is parked on the street and sinks into a roadbed and is damaged.
- Accidental spray paint—an employee of the business next door to the
contractor is spray painting a vehicle in the open, which results in residual
paint blowing onto the contractor's fleet of pickups located in its yard.
- Vermin—Mice damage a vehicle's seats and door panels.
- Heat—Sunlight greenhouse effect causes a vehicle's glass to shatter.
- Odor—An animal expires in a vehicle's interior.
- Pollutants—Acid rain damages a vehicle's paint.
, Physical Damage - Collision:
When collision coverage is afforded, it insures against losses caused by the
covered auto's collision with another object or the covered auto's overturn.
(T/F)? - correct answer ✔true
When a covered auto suffers glass breakage in conjunction with a collision
loss, and the glass breakage would also be covered under comprehensive
coverage, the insured has the option of choosing which coverage applies.
This option affords the insured the broadest possible coverage, i.e., since
either coverage applies, the one with the lower deductible (usually
comprehensive) can be chosen. However, the glass breakage would not be
subject to an additional deductible above the collision deductible if it is
considered a part of the collision loss. (T/F)? - correct answer ✔true
Insureds typically desire to purchase collision coverage to protect ....? -
correct answer ✔private passenger autos unless they are older and have
limited cash value.
- They may also desire coverage for commercial vehicles, especially if those
vehicles are newer and of high value.
________________ coverage provides reasonable expenses incurred by an
insured for necessary medical and funeral services, regardless of fault. It is
normally added to the BAP via an endorsement. - correct answer ✔Medical
payments
These reasonable expenses must be connected with ____________ caused
by an _________, as both those terms are defined in the applicable coverage
form. - correct answer ✔"bodily injury"
Liability Insurance
Section 2. 1 - Automobile Liability Insurance - correct answer ✔....
The ownership or operation of an auto exposes a contractor to potentially
large financial losses.
An auto is defined as: - correct answer ✔a land motor vehicle, trailer, or
semi-trailer designed for travel on public roads
The contractor might be held legally liable to others for _____________ or
____________ arising out of an auto, or the contractor's vehicle(s) could be
lost, damaged, or destroyed by any number of perils. - correct answer
✔bodily injury or property damage
Theft of trucks at unattended construction sites is a big concern for
contractors. Most contractors insure these loss exposures by purchasing a
___________________. - correct answer ✔business auto policy (BAP)
Section 2. 2 - Major Coverages - correct answer ✔...
The BAP offers a variety of coverages, including...? - correct answer
✔liability
physical damage
medical payments
no-fault
uninsured/underinsured motorists (UM/UIM)
,__________ is the legally enforceable obligation to pay a monetary award for
injury or damage caused by one's negligent or statutorily prohibited action. -
correct answer ✔"Liability"
The Liability policy insures against legal liability arising from the
________________________________ of covered autos. - correct answer
✔ownership, operation, or use
_______________________ coverage deals with the exposure of direct and
accidental loss of, or damage to, an insured's own vehicle. - correct answer
✔Physical damage
The major physical damage coverages include ....? - correct answer
✔specified causes of loss, comprehensive, and collision.
Physical Damage - Specified Causes of Loss:
Specified causes of loss coverage applies to damage from specific named
perils, such as: - correct answer ✔fire, lightning, theft, windstorm, flood, and
vandalism.
Purchasing _______________________ is a less broad, and thus less
expensive, alternative to comprehensive coverage. - correct answer
✔Specified Causes of Loss
Contractors commonly purchase specified causes of loss coverage to apply to
their...? - correct answer ✔fleet of vehicles.
They may also prefer this coverage for older private passenger autos because
of cost considerations.
,Physical Damage - Comprehensive:
When comprehensive coverage applies, the policy will pay for...? - correct
answer ✔direct and accidental loss or damage from any cause except
collision or overturn, subject to specified exclusions.
Contractors frequently procure _________________ coverage to insure
owned private passenger type vehicles. - correct answer ✔Comprehensive
When an auto is covered by both _____________ and _____________
coverage, it is covered for all sources of direct and accidental loss or damage
except those specifically excluded, such as war, nuclear hazard, and wear
and tear. - correct answer ✔comprehensive and collision
Examples of some types of loss that could be covered under comprehensive
coverage that in most circumstances would not be covered under specified
causes of loss coverage. - correct answer ✔- Sinkhole—a contractor's truck
is parked on the street and sinks into a roadbed and is damaged.
- Accidental spray paint—an employee of the business next door to the
contractor is spray painting a vehicle in the open, which results in residual
paint blowing onto the contractor's fleet of pickups located in its yard.
- Vermin—Mice damage a vehicle's seats and door panels.
- Heat—Sunlight greenhouse effect causes a vehicle's glass to shatter.
- Odor—An animal expires in a vehicle's interior.
- Pollutants—Acid rain damages a vehicle's paint.
, Physical Damage - Collision:
When collision coverage is afforded, it insures against losses caused by the
covered auto's collision with another object or the covered auto's overturn.
(T/F)? - correct answer ✔true
When a covered auto suffers glass breakage in conjunction with a collision
loss, and the glass breakage would also be covered under comprehensive
coverage, the insured has the option of choosing which coverage applies.
This option affords the insured the broadest possible coverage, i.e., since
either coverage applies, the one with the lower deductible (usually
comprehensive) can be chosen. However, the glass breakage would not be
subject to an additional deductible above the collision deductible if it is
considered a part of the collision loss. (T/F)? - correct answer ✔true
Insureds typically desire to purchase collision coverage to protect ....? -
correct answer ✔private passenger autos unless they are older and have
limited cash value.
- They may also desire coverage for commercial vehicles, especially if those
vehicles are newer and of high value.
________________ coverage provides reasonable expenses incurred by an
insured for necessary medical and funeral services, regardless of fault. It is
normally added to the BAP via an endorsement. - correct answer ✔Medical
payments
These reasonable expenses must be connected with ____________ caused
by an _________, as both those terms are defined in the applicable coverage
form. - correct answer ✔"bodily injury"
