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AINS 103 Chapter 4 exam with correct answers.
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AINS 103 Chapter 4 exam with correctanswers
What format do most insurers use for commercial auto coverage?
- .......🔷ANSWERS🔶......✔✔ Due to auto insurance needs and legal requirements, coverage
needs can vary, which is why most insurers use a flexible, modular format.
Business Auto Coverage Form (BACF): - .......🔷ANSWERS🔶......✔✔ Provides auto liability
insurance and includes optional coverage for physical damage to autos.
BACF Liability Coverage: - .......🔷ANSWERS🔶......✔✔ The insurer agrees to pay damages
for bodily injury or property damage the insured is liable for that is caused by an accident
involving a covered auto. Exclusions, policy limits and other conditions may apply.
BACF Physical Damage Coverage: - .......🔷ANSWERS🔶......✔✔ Coverage is optional, but is
often required if a business is financing or leasing its autos.
The BACF allows a business to select from three basic physical damage coverages:
- .......🔷ANSWERS🔶......✔✔ -Collision
-Comprehensive
-Specified Causes of Loss
Collision Coverage: - .......🔷ANSWERS🔶......✔✔ Insures direct and accidental loss of or
damage to a covered auto caused by its collision with another object or is overturned.
Comprehensive Coverage: - .......🔷ANSWERS🔶......✔✔ Open perils coverage, which
insures direct and accidental loss of or damage to a covered auto by any peril EXCEPT
collision, overturn, or one specifically excluded. Overlaps with Specified Causes of Loss
Coverage.
, Specified Causes of Loss Coverage: - .......🔷ANSWERS🔶......✔✔ Covers direct and
accidental loss caused by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood,
mischief, vandalism, or loss resulting from the sinking, burning, collision, or derailment of a
conveyance transporting the covered auto. Overlaps with Comprehensive Coverage.
Important Endorsements: - .......🔷ANSWERS🔶......✔✔ Coverages for medical payments,
personal injury protection (PIP), uninsured motorists (UM), and underinsured motorists
(UIM) are commonly added by endorsements to commercial auto coverage forms.
Auto Medical Payments Coverage: - .......🔷ANSWERS🔶......✔✔ Pays small bodily injury
claims resulting from an auto accident, regardless of fault.
(Personal Injury Protection (PIP) Coverage: - .......🔷ANSWERS🔶......✔✔ May be legally
required by state law. It pays benefits, regardless of fault, for medical expense, income loss,
and other expenses resulting from an accident.
Uninsured/Underinsured Motorist (UM/UIM) Coverage: - .......🔷ANSWERS🔶......✔✔
Pays for injuries caused by another motorist who is uninsured/underinsured and unable to
pay as a result.
Jane is an Electrician who drives her employer covered auto, a van, to a customer's house.
While parked, the van leaked coolant on the customers driveway. Does the BACF provide
coverage for the pollution cleanup? - .......🔷ANSWERS🔶......✔✔ Yes.
What three basic physical damage coverages does the BACF offer to businesses?
- .......🔷ANSWERS🔶......✔✔ -Collision
-Comprehensive
-Specified Causes of Loss
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