CPCU 552- Chapter 4 Business Auto
Insurance Questions and answers 2025
Employers .nonownership .liability .- .ANS✓✓-
For .its .employees .operations .of .their .autos .in .their .employers .business
What .property .loss .exposures .are .associated .with .commercial .automobiles? .- .
ANS✓✓-
1.) .Decrease .in .or .loss .of .autos .value .2.) .Loss .of .use .of .the .auto .until .it .can .be
.repaired .or .replaced.
Explain .how .commercial .auto .liability .can .result .from .ownership .of .autos: .- .AN
S✓✓-Liability .is .placed .on .the .employer .when, .within .the .scope .of .employment,
.an .employee .of .the .business .operates .an .auto .owned .by .the .business .and .neg
ligently .injures .other .persons .or .damages .their .property.
Explain .how .commercial .auto .liability .can .result .from .use .of .autos .that .are .not .
owned .- .ANS✓✓-
From .the .use .of .autos .it .does .not .own. .A .business .could .rent .or .borrow .an .aut
o, .or .employees .could .use .their .own .autos .for .business .purposes. .The .busines
s .could .be .held .legally .responsible .for .an .accident .in .any .of .those .circumstanc
es.
Identify .all .parties .affected .by .personal .loss .exposures: .- .ANS✓✓-
Anyone .would .could .suffer .injury .in .an .auto .accident .either .while .occupying .an
.auto .or .a .pedestrian .had .personnel .loss .exposure.
Describe .the .commercial .automobile .coverages .designed .to .respond .to .the .per
sonal .loss .exposures .that .arise .from .auto .accidents: .- .ANS✓✓-
Auto .medical .payments .coverage, .Personal .injury .protection .coverage, .Uninsur
ed .motorist .coverage
, Business .Auto .Coverage .Form .- .ANS✓✓-
A .coverage .form, .filed .by .ISO, .that .covers .liability .arising .out .of .the .ownership,
.maintenance, .or .use .of .autos .and .physical .damage .to .autos, .owned, .leased, .or
.hired .by .the .named .insured.
Coverage .symbols .- .ANS✓✓-
Indicate .which .autos .are .covered .for .particular .coverages.
In .addition .to .the .usual .information .contained .in .any .declarations .form, .what .ad
ditional .information .does .the .business .auto .declarations .form .include: .- .ANS✓
✓-
various .schedules .for .recording .applicable .coverages, .covered .autos, .limits, .de
ductibles, .premiums, .and .rating .and .classification .information.
Identify .the .five .sections .the .Business .Auto .Coverage .Form .contains: .- .ANS✓✓
-
1.) .Covered .Autos .2.) .Liability .Coverage .3.) .Physical .Damage .Coverage .4.) .Busi
ness .Auto .Conditions .5.) .Definitions
Explain .why .insurers .sometimes .are .unwilling .to .use .symbols .1: .- .ANS✓✓-
Because .of .all .encompassing .coverage .it .triggers.
If .symbol .2 .is .used .to .signal .liability .coverage, .what .other .symbols .must .be .sh
own: .- .ANS✓✓-
symbols .8 .and .9 .must .also .be .shown .for .liability .coverage .in .order .to .cover .hir
ed .and .non-autos.
Under .what .circumstances .does .symbol .five .provide .personal .injury .propertecti
on .(PIP) .coverage? .- .ANS✓✓-
Only .for .those .autos .that .are .required .by .law .to .have .it.
For .what .kind .of .autos .does .symbol .9 .provide .coverage: .- .ANS✓✓-
Autos .non .owned, .leased, .hired, .or .borrowed .by .the .NI .while .such .autos .are .us
ed .in .connection .withe .the .NI's .business. .Symbol .9 .includes .autos .owned .by .th
e .named .insured's .employees .or .members .of .their .households .but .only .while .u
sed .in .the .named .insured's .business .or .personal .affairs.
Contrast .the .coverage .for .newly .acquired .autos .provided .by .symbols .1-
6 .or .19 .with .that .provided .by .symbol .7 .in .the .Business .Auto .Coverage .Form: .- .
ANS✓✓-If .symbols .1-
6 .or .19 .are .used, .newly .acquired .autos .are .automatically .covered. .The .insurer .
Insurance Questions and answers 2025
Employers .nonownership .liability .- .ANS✓✓-
For .its .employees .operations .of .their .autos .in .their .employers .business
What .property .loss .exposures .are .associated .with .commercial .automobiles? .- .
ANS✓✓-
1.) .Decrease .in .or .loss .of .autos .value .2.) .Loss .of .use .of .the .auto .until .it .can .be
.repaired .or .replaced.
Explain .how .commercial .auto .liability .can .result .from .ownership .of .autos: .- .AN
S✓✓-Liability .is .placed .on .the .employer .when, .within .the .scope .of .employment,
.an .employee .of .the .business .operates .an .auto .owned .by .the .business .and .neg
ligently .injures .other .persons .or .damages .their .property.
Explain .how .commercial .auto .liability .can .result .from .use .of .autos .that .are .not .
owned .- .ANS✓✓-
From .the .use .of .autos .it .does .not .own. .A .business .could .rent .or .borrow .an .aut
o, .or .employees .could .use .their .own .autos .for .business .purposes. .The .busines
s .could .be .held .legally .responsible .for .an .accident .in .any .of .those .circumstanc
es.
Identify .all .parties .affected .by .personal .loss .exposures: .- .ANS✓✓-
Anyone .would .could .suffer .injury .in .an .auto .accident .either .while .occupying .an
.auto .or .a .pedestrian .had .personnel .loss .exposure.
Describe .the .commercial .automobile .coverages .designed .to .respond .to .the .per
sonal .loss .exposures .that .arise .from .auto .accidents: .- .ANS✓✓-
Auto .medical .payments .coverage, .Personal .injury .protection .coverage, .Uninsur
ed .motorist .coverage
, Business .Auto .Coverage .Form .- .ANS✓✓-
A .coverage .form, .filed .by .ISO, .that .covers .liability .arising .out .of .the .ownership,
.maintenance, .or .use .of .autos .and .physical .damage .to .autos, .owned, .leased, .or
.hired .by .the .named .insured.
Coverage .symbols .- .ANS✓✓-
Indicate .which .autos .are .covered .for .particular .coverages.
In .addition .to .the .usual .information .contained .in .any .declarations .form, .what .ad
ditional .information .does .the .business .auto .declarations .form .include: .- .ANS✓
✓-
various .schedules .for .recording .applicable .coverages, .covered .autos, .limits, .de
ductibles, .premiums, .and .rating .and .classification .information.
Identify .the .five .sections .the .Business .Auto .Coverage .Form .contains: .- .ANS✓✓
-
1.) .Covered .Autos .2.) .Liability .Coverage .3.) .Physical .Damage .Coverage .4.) .Busi
ness .Auto .Conditions .5.) .Definitions
Explain .why .insurers .sometimes .are .unwilling .to .use .symbols .1: .- .ANS✓✓-
Because .of .all .encompassing .coverage .it .triggers.
If .symbol .2 .is .used .to .signal .liability .coverage, .what .other .symbols .must .be .sh
own: .- .ANS✓✓-
symbols .8 .and .9 .must .also .be .shown .for .liability .coverage .in .order .to .cover .hir
ed .and .non-autos.
Under .what .circumstances .does .symbol .five .provide .personal .injury .propertecti
on .(PIP) .coverage? .- .ANS✓✓-
Only .for .those .autos .that .are .required .by .law .to .have .it.
For .what .kind .of .autos .does .symbol .9 .provide .coverage: .- .ANS✓✓-
Autos .non .owned, .leased, .hired, .or .borrowed .by .the .NI .while .such .autos .are .us
ed .in .connection .withe .the .NI's .business. .Symbol .9 .includes .autos .owned .by .th
e .named .insured's .employees .or .members .of .their .households .but .only .while .u
sed .in .the .named .insured's .business .or .personal .affairs.
Contrast .the .coverage .for .newly .acquired .autos .provided .by .symbols .1-
6 .or .19 .with .that .provided .by .symbol .7 .in .the .Business .Auto .Coverage .Form: .- .
ANS✓✓-If .symbols .1-
6 .or .19 .are .used, .newly .acquired .autos .are .automatically .covered. .The .insurer .
