Cpcu 552, Chapter 4

Front 1

employers nonownership liability

Back 1

employer's liability for its employees' operation of their autos in the employer's business

Front 2

commercial package policy (CPP)

Back 2

policy that covers 2 or more lines of business by combining ISO's commercial lines coverage parts

Front 3

Monoline policy

Back 3

policy that covers only one line of bisiness

Front 4

garagekeepers coverage

Back 4

coverage for damage to cusomers' auto left in the named insured's care while the insured is attending, servicing, repairing, parking, or storing them

Front 5

3 basic categories of commercial auto loss exposures

Back 5

1. liability loss exposure

2. property loss exposures

3. personal loss exposures

Front 6

Most common way a business can incur auto liability

Back 6

through negligent injury of persons or damages to property by an employee operating an auto

Front 7

ID situations in which an organization can become liable for injury or damage to others that results from non owned auto

Back 7

* employee use his own auto to further an employer's business

* organization hires autos from other organizations

Front 8

Purpose of garagekeepers coverage

Back 8

insure loss to customer's auto while they are in the custody of the insd auto dealer

Front 9

Describe the main consequences of damage to an auto from the perspective of the auto's owner

Back 9

main consequences of damage to an auto are decrease in auto value and loss of use until it is repaired

Front 10

Describe the various commercial auto coverages that cover personal loss exposures arising from auto accident

Back 10

auto medical payments coverage, personal injury protection coverage, and uninsured motorists coverage cover personal loss exposures arising from auto accident

Front 11

Types of insureds are eligible for the business auto coverage form

Back 11

any organization other than auto dealers and motor carriers are eligible for the business auto coverage form

Front 12

purpose of adding endosment to commercial auto coverage form

Back 12

* endosment used to add coverage

* designate additional insured

* add or omit exclusions

* bring standard coverage form into conformity with the state

Front 13

numerical symbol sustems used to indicate covered autos under the Business Auto Coverage Form

Back 13

uses nymbers to indicate covered autos. 1 or more of the numbers entered beside each coverage listed int he policy scheduled to indicate which autos are covered

Front 14

Symbol 1

Back 14

any auto

Front 15

symbol 2

Back 15

owned autos only

Front 16

symbol 3

Back 16

owned private passenger autos only

Front 17

symbol 4

Back 17

owned autos other than private passenger autos only

Front 18

symbol 5

Back 18

owned autos suject to no fault

Front 19

symbol 6

Back 19

owned autos subject to a compulsorty uninsured motorists law

Front 20

symbol 7

Back 20

specifically described auto

Front 21

symbol 8

Back 21

hired autos only

Front 22

symbol 9

Back 22

nonowned autos only

Front 23

symbol 19

Back 23

mobile equipment subject to compulsory or financial responsibility or other motor vehicl insurance law only

Front 24

newly acquired autos symbol 1-6 or 19 vs symbol 7

Back 24

if symbols 1-6 or 19 is used, newly acquired auto s of the type are automatically covered.

if symbol 7 used, newly acquired autos are covered from acquisition only if inrer insures all autos owned by named insd

Front 25

situation where symbol 19 is useful

Back 25

when insured has coverage through symbol 7

Front 26

3 distinct duties that an insurer has under the business auto coverage form liablity coverage agreement

Back 26

1. duty to pay damages

2. duty to pay covered polution cost or expense

3. duty to defend the insured

Front 27

what determines whether a vehicle qualifies as a covered auto under the business auto form

Back 27

depends on what coverage symbolss re indicated in the schedule of coverages adn what covered autos are listed in the business auto dec

Front 28

identify the circumstances under which business auto coverage form will cover pollutions cost or expense

Back 28

for pollution cost to be covered under the business auto, it must be caused by an accident and must result from the ownership or use of the covered auto. also the accident must result in BI or PD

Front 29

Who is an insured under the business auto policy

Back 29

named insured. anyone other than named insured is insured while using the named insured's permission a covered auto woned, hired, or borrowed by the named insured

Front 30

identify the 6 supplementary payments business auto liability coverage provide

Back 30

1. all expenses incured by the insurer

2. up to $2,000 for the cost of bail bonds required bc of a covered accident

3. cost of bonds to release attachments in any suit against the insd that the insurer defends

4. all reasonable expenses incurred by the insured at the insurer's request

5. all court costs taxed against the insured in any suit agaings the insured defended by the insurer

6. all interest on the full amount of any judgment that accrues after entry of the judgment in any suit against the insd that insurer defends

Front 31

categories of exclusions in the business auto

Back 31

* expected or intended injury and contractual liability exclusions

* workers comp and related exclusions

* care, cusoty, or control exclusiions

* exclusions related to loading and unloading

* operations and completed operations exclusions

* pollution, war, and racing exclusion

Front 32

3 basic physical damage coverages from which the insd may choose under the business auto form

Back 32

* collision coverage

* comprehensive coverage

* specified cause of loss coverage

Front 33

what is included in the business auto collision coverage

Back 33

collision coverage insures direct and accidental loss to a covered auto caused by collision with another object

Front 34

what is included in the business auto comprehensive coverae

Back 34

covers direct and accidental loss to a covered auto by any covered peril except collision

Front 35

examples of perils insured under business auto specified cause of loss coverage

Back 35

fire, lightning, explosion, theft, wind, hail, earthquake, flood, mischief, vandalism, etc.

Front 36

examples of types of electronic equipment excluded under business auto

Back 36

* tapes, records, discs, or similar devices

* radar detectors, laser detectors, etc.

* any equipment regardless of whether it is permanently installed, that reproduces audio, visual, or data signals

* any accessories used with the previously described equipment

Front 37

describe business auto determination of the most of the nsurer will pay for physical damage loss

Back 37

* actual cash value of the property

* cost of repairing or replacing the property

Front 38

insured's duties after a loss

Back 38

*give prompt notice os loss

* cooperate with the insurer

* send insurer copes of an notices or legal papers

* sugmit to physical examinations by physcians selected by insurer

* authorize insurer to obtain medicl reports

Front 39

describe insurer's loss payment options with regard to damagedd or stolen property under business auto

Back 39

* pay to repair/replace the property

* return the property at the expense of insurer and repair any damage caused by theft

* keep all of the property and pay and agreed value

Front 40

describe insurer's right known as subrogation

Back 40

subrogation entails insured's right to recover a loss from some other party. if insurer pays the the loss, it is entitled to take tover the insured's right of recovery

Front 41

purpose of employees as insureds endorsment

Back 41

to cover employees of the named insured while they are using covered auto that named insured does not own, hire, or borrow in the named insured's business

Front 42

purpose of employee hired autos endorsement

Back 42

to cover employees of the named insured as insureds while operating autos rented in an employee's name with named insured's permission

Front 43

why underwriter might want to attach the State Amount Insurance endorsment to a business auto form

Back 43

when underwriter want to limit the insurer's liability for physical damage loss. might be done on a high valued specialized vehicle

Front 44

purpose of uninsured motorists coverage

Back 44

provides source of recovery for occupants of a covered auto who was inufured by an at fault motorist who does not have BI coverage

Front 45

when will sole proprietor might purchase uninsured or underinsured motorist coverage in conjuction with business auto

Back 45

might purchase uninsured motorist coverage is he has chosen not to be covered by workers compensation

Front 46

individual named insured endorsment affect business auto liability coverage

Back 46

extends liability coverage to (1) resident relatives while using any auto the named insured ownes of the private passenger type that is covered auto for liab cov and (2) named insured and resident relatives while using auto that are not owned by them

Front 47

Drive Other Car Coverage - Broaden Coverage for Named Individuals endosement

Back 47

when named insured has provided company cars to executive officers adn those individuals do not have their own personal auto insurance to cover them or their family members while driving autos that are not covered under employer's policy