Social Science Business Insurance
CPCU 552
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RM 460 Quiz 2 AINS 23 Commercial Auto CPCU 552, Chapter 3 Financi
16 terms 54 terms 19 terms 34 terms
P Seth_Herdoiza Preview Brannonrjones Preview bross89 Preview dm
The Commercial General Liability (CGL) Coverage Form B. An accident, including continuous or repeated exposure to substantially the
defines the term "occurrence" as same general harmful conditions.
Select one:
A. An incident, sudden and accidental in nature, causing The Commercial General Liability (CGL) Coverage Form defines the term
bodily injury or property damage. "occurrence" as an accident, including continuous or repeated exposure to
B. An accident, including continuous or repeated substantially the same general harmful conditions.
exposure to substantially the same general harmful
conditions.
C. An accident, causing bodily injury or property damage,
that occurs suddenly.
D. An incident resulting from repeated exposure to
substantially the same general harmful conditions.
Sullivan Construction Company (SCC) is an excavation B. Symbol 2—owned autos only
contractor specializing in digging foundations for homes.
It has five dump trucks, each of which is fitted with a tow SCC should select Symbol 2—owned autos only for physical damage coverage
hitch. Each vehicle tows a trailer used to move excavation under its BACF.
equipment to and from job sites as well as to haul dirt.
SCC's president, Bill Sullivan, drives a sport utility vehicle
owned and insured by SCC. The company has one
outside salesman and 10 construction employees, all of
whom drive their own vehicles to work and on company
business. SCC's equipment includes four backhoes used
to dig building foundations and one bulldozer. Among
other insurance, SCC has an unendorsed Business Auto
Coverage Form (BACF).
Select one:
A. Symbol 1—any auto
B. Symbol 2—owned autos only
C. Symbol 3—owned private passenger autos only
D. Symbol 4—owned autos other than private passenger
autos only
, Matthew Jones, the named insured under an unendorsed C. Paul is not covered because employees are not insured while using their own
Business Auto Coverage Form (BACF), requires his autos in the named insured's business.
employees to use their own cars for business purposes.
One of Matthew's employees, Paul, causes an accident C is correct — Paul is not insured because he's using his own truck in the business,
while driving his own truck for the business. and the unendorsed BACF excludes this scenario.
Matthew's BACF shows symbol 1 for liability coverage.
Which one of the following correctly indicates whether
Paul is an insured under the policy for the accident?
A. Paul is covered because employees are considered
insureds for any auto.
B. Paul is covered because Matthew has given permission
for Paul to drive his own truck.
C. Paul is not covered because employees are not
insured while using their own autos in the named insured's
business.
D. Paul is not covered because employees are not
insureds for any use of any auto.
The specified causes of loss coverage of the business C. Derailment of a conveyance transporting the insured vehicle.
auto policy includes coverage for which one of the
following? Correct Answer: C — Derailment of a conveyance transporting the insured vehicle
Select one: This is one of the named perils under Specified Causes of Loss in the Business
A. Glass breakage whether caused by collision or some Auto Policy.
other cause.
B. Direct and accidental loss or damage resulting from
overturn.
C. Derailment of a conveyance transporting the insured
vehicle.
D. Towing and labor costs resulting from disablement.
Emily has just accepted a new position with Argot B. Employees as Insureds
Industries (Argot). She is a sales representative and will
be expected to call on current and prospective The Employees as Insureds endorsement modifies the BACF to make employees
customers in her territory. Emily will use her own car to insureds while using their own autos in the employer's business. This would
make the sales calls, and Argot will reimburse her for gas provide liability protection for Emily in the event of an at-fault accident while she
and tolls. She has a Personal Auto Policy (PAP) with the is making sales calls for Argot in her own car.
minimal mandatory liability limits, but is curious if she is
covered under Argot's Business Auto Coverage Form
(BACF) while driving her car for Argot business. Which
one of the following endorsements, if any, would need to
be part of Argot's BACF to provide liability coverage for
Emily while she is driving her car for Argot's business?
Select one:
A. No endorsement is required.
B. Employees as Insureds
C. Employee Hired Auto
D. Driver Other Car—Broadened Coverage for Named
Individuals
CPCU 552
Save
Students also studied
RM 460 Quiz 2 AINS 23 Commercial Auto CPCU 552, Chapter 3 Financi
16 terms 54 terms 19 terms 34 terms
P Seth_Herdoiza Preview Brannonrjones Preview bross89 Preview dm
The Commercial General Liability (CGL) Coverage Form B. An accident, including continuous or repeated exposure to substantially the
defines the term "occurrence" as same general harmful conditions.
Select one:
A. An incident, sudden and accidental in nature, causing The Commercial General Liability (CGL) Coverage Form defines the term
bodily injury or property damage. "occurrence" as an accident, including continuous or repeated exposure to
B. An accident, including continuous or repeated substantially the same general harmful conditions.
exposure to substantially the same general harmful
conditions.
C. An accident, causing bodily injury or property damage,
that occurs suddenly.
D. An incident resulting from repeated exposure to
substantially the same general harmful conditions.
Sullivan Construction Company (SCC) is an excavation B. Symbol 2—owned autos only
contractor specializing in digging foundations for homes.
It has five dump trucks, each of which is fitted with a tow SCC should select Symbol 2—owned autos only for physical damage coverage
hitch. Each vehicle tows a trailer used to move excavation under its BACF.
equipment to and from job sites as well as to haul dirt.
SCC's president, Bill Sullivan, drives a sport utility vehicle
owned and insured by SCC. The company has one
outside salesman and 10 construction employees, all of
whom drive their own vehicles to work and on company
business. SCC's equipment includes four backhoes used
to dig building foundations and one bulldozer. Among
other insurance, SCC has an unendorsed Business Auto
Coverage Form (BACF).
Select one:
A. Symbol 1—any auto
B. Symbol 2—owned autos only
C. Symbol 3—owned private passenger autos only
D. Symbol 4—owned autos other than private passenger
autos only
, Matthew Jones, the named insured under an unendorsed C. Paul is not covered because employees are not insured while using their own
Business Auto Coverage Form (BACF), requires his autos in the named insured's business.
employees to use their own cars for business purposes.
One of Matthew's employees, Paul, causes an accident C is correct — Paul is not insured because he's using his own truck in the business,
while driving his own truck for the business. and the unendorsed BACF excludes this scenario.
Matthew's BACF shows symbol 1 for liability coverage.
Which one of the following correctly indicates whether
Paul is an insured under the policy for the accident?
A. Paul is covered because employees are considered
insureds for any auto.
B. Paul is covered because Matthew has given permission
for Paul to drive his own truck.
C. Paul is not covered because employees are not
insured while using their own autos in the named insured's
business.
D. Paul is not covered because employees are not
insureds for any use of any auto.
The specified causes of loss coverage of the business C. Derailment of a conveyance transporting the insured vehicle.
auto policy includes coverage for which one of the
following? Correct Answer: C — Derailment of a conveyance transporting the insured vehicle
Select one: This is one of the named perils under Specified Causes of Loss in the Business
A. Glass breakage whether caused by collision or some Auto Policy.
other cause.
B. Direct and accidental loss or damage resulting from
overturn.
C. Derailment of a conveyance transporting the insured
vehicle.
D. Towing and labor costs resulting from disablement.
Emily has just accepted a new position with Argot B. Employees as Insureds
Industries (Argot). She is a sales representative and will
be expected to call on current and prospective The Employees as Insureds endorsement modifies the BACF to make employees
customers in her territory. Emily will use her own car to insureds while using their own autos in the employer's business. This would
make the sales calls, and Argot will reimburse her for gas provide liability protection for Emily in the event of an at-fault accident while she
and tolls. She has a Personal Auto Policy (PAP) with the is making sales calls for Argot in her own car.
minimal mandatory liability limits, but is curious if she is
covered under Argot's Business Auto Coverage Form
(BACF) while driving her car for Argot business. Which
one of the following endorsements, if any, would need to
be part of Argot's BACF to provide liability coverage for
Emily while she is driving her car for Argot's business?
Select one:
A. No endorsement is required.
B. Employees as Insureds
C. Employee Hired Auto
D. Driver Other Car—Broadened Coverage for Named
Individuals
