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Automobile – Commercial Insurance 142 questions with Answers
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Automobile – Commercial Insurance 142 questions with Answers
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Automobile – Commercial Insurance 142 questionswith Answers
1.An insured has a Business Auto Policy (BAP) with a
$100 deductible for Collision and
Comprehensive coverage. While driving, to the insured hits a tree, resulting
in $2,500 damage to the insured truck. After walking to a service station to
report the
accident, the insured returns to find $250 worth of CDs have been stolen
from the truck. In this situation, the insurer will pay a maximum of.
A. $2,700
B. $2.650
C. $2,500
D. $2,400: D. $2,400
Feedback/Explanation: The CDs are specifically excluded in the BAP.
After applying the $100 deductible, the correct answer is $2,400.
2.Under a Business Auto policy,
which of the following coverage symbols is used to designate liability cover-
age for any auto?
A. Symbol 1
B. Symbol 2
C. Symbol 8
D. Symbol 9: A. Symbol
1
Feedback/Explanation:
Symbol 1: "Any auto.
Symbol 2: "Owned autos only.
Symbol 3: "Owned private passenger autos only.
Symbol 4; "Owned Autos other than private
passenger autos only."
Symbol 5: "Owned autos subject to No-Fault."
Symbol6: "Owned autos subject to a compulsory unin-sured motorists
law:" Symbol 7: "Specifically described autos."
Symbol 8: "Hired autos only."
Symbol 9: «Nonowned autos
only."
Symbol 19: "Mobile Equipment Subject to Compulsory Or Financial
Responsibility Or Other Motor Vehicle Insurance Law Only."
3.Which losses are excluded under the physical damage section of the
Busi- ness Auto policy?
,A. Glass Breakage
B. Damage from overturn
of vehicle
C. Damage from freezing
D. Damage from falling objects: C. Damage from freezing
4.Florist shop has six vehicles with stacked uninsured motorist coverage
of 100/300. If the driver of the business vehicle is hurt,
how much is the most payable to the driver for their medical expenses.
A. $100,000
B. $300,000
C. $600,000
D. $1,800,000: C. $600,000
Feedback/Explanation: One person ($100,000) times six vehicles =
$600,000
5.Employee uses a company car to go to the movies. In an accident,
the employee hits a lady. How is the claim settled
A. The Business Auto policy defends and pays
B. The employees personal auto policy defend first
C. No coverage is available, as the employee used the car for personal use
D. Business auto policy defends first and if necessary the employee's policy
would be excess over BAP: D. Business auto policy defends first and if
necessary the employee's policy would be excess over BAP
Feedback/Explanation: The coverage of the vehicle in the accident is
primary. Drivers policy is excess for the driver.
6.A company which oversees or has a vested interest in the insured's
property is:
A. Fiduciary
B. Financial Institution
C. Bail bond
D. Bailee: B. Financial Institution
7.Why will policy conditions not respond if a mechanic damages
customers car?
A. Vicarious Liability
B. Contingent Liability
C. Care, Custody and Control
D. Physical Damage: C. Care, Custody and Control
Feedback/Explanation: Care, Custody and Control will apply in Auto
Policy under Garagekeepers
8.How does PIP pay for
a motorcycle accident of
,a
daughter who is still living in the house?
A. Payable equal to the liability limits
B. Nothing paid- motorcycle is not a defined motor vehicle
, C. Pays equal to the Uninsured Motorist Limit
D. Pays to a maximum of $10.000: B. Nothing paid -motorcycle is not a
defined motor vehicle
9.What is the limit for Non-owned trailers under Part D - Damage to
Your Covered Auto of the PAP?
A. $500
B. $1,000
C. $1,500
D. $2,500: C. $1.500
10.Who regulates the FAJUA?
A. Department of Highway Safety and Motor Vehicles
B. Office of Insurance Regulations
C. Financial Services Commission
D. Board of Governors: D. Board of Governors
11.What is a Tort Exemption under PIP?
A. Insured is exempt from legal liability to the extent PIP is paid
B. Pays for damages to the insured property
C. Workers' Compensation requires
D. Payment from the insured's auto policy for the insured's damages:
A. Insured is exempt from legal liability to the extent PIP is paid
12.Where will coverage be suspended under the PAP?
A. Puerto Rico
B. Hawall
C. Mexico
D. Canada: C. Mexico
13.If the insured is in a not-at-fault accident, under the Uninsured
Motorist coverage what is not covered?
A. Bodily Injury
B. Lost wages
C. Loss of Consortium
D. Damages to the Insured Vehicle: D. Damages to the Insured Vehicle
14.How long does an insured have to file a claim under Medical
Payments from the PAP?
A. 1 year
B. 3 years
C. 90 days
D. Indefinitely: B. 3 years
15.Insured employee at a mechanic shop is test driving the customer's car
to determine what the mechanical problem is. The
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