Commercial Casualty II – CISR Exam 121 Questions with Answers
In BAP what does liability section provide protection from claims for? - CORRECT
... [Show More] ANSWER Bodily Injury and Property Damage for which insured is legally responsible for.
In BAP physical damage section what type of protection? - CORRECT ANSWER provides coverage for damage to or loss of an insured's covered auto.
What other BAP coverages can be added by endorsement? - CORRECT ANSWER Medical payments
personal injury protection
uninsured/underinsured
motorist bodily injury and/or property damage losses
List all BAP Coverage Exposures? - CORRECT ANSWER Liability
physical damage
comprehensive
collision
Owned auto
non-owned auto
hired or borrowed auto
specified cause of loss
towing for private passenger
What are BAP liability auto exposures that can arise out of insured maintenance or use of several types autos? - CORRECT ANSWER Autos name insured owns
Autos Name insured does not own, but uses in business
Autos name insured hires or borrows
List some common claims that arises out of physical damage? - CORRECT ANSWER Collision
windshield breakage
theft
fire
vandalism
Define "Accident" in BAP - CORRECT ANSWER Does not have to be sudden. A Continuous or repeated exposure to the same conditions that result in BI or PD
Define "Auto" in BAP - CORRECT ANSWER a land motor vehicle, trailer or semi trailer designed to travel on public roads
subject to financial responsibility law or other MV law where it is licensed or principally garaged
Recap CGL "insured contracts" - CORRECT ANSWER Lease of premises
Sidetrack agreement
easement or license agreement
obligation as required by ordinance
assumed tort liability
*BAP elevator maintenance is not applicable!
BAP uses LEAS plus what other "insured contract?" - CORRECT ANSWER Rental Lease agreement - made by name insured or any of it's employees.
does not cover property damage to auto rented or leased by name insured or one of the employees
Recap descriptive phrases for GL mobile equipment? - CORRECT ANSWER "designed for use off public roads"
"used primarily to service premises you own or rent"
"moves on crawler treads"
"self propelled or not
self propelled"
"provides mobility to permanently mounted specific equipment"
"not otherwise described ... maintained for purposes other than transport of persons or cargo"
What 6 types mobile equipment for BAP? - CORRECT ANSWER 1.
Bulldozers, farm machinery, forklifts and
other vehicles designed for use principally off public roads.
2.
Vehicles maintained for use solely on or next to premises you own or rent. (The key words are
"maintained for use solely on premises you own or rent".)
3.
Vehicles that travel on crawler treads.
4.
Vehicles, whether self
-
propelled or not, maintained to provide mobility to permanently mounted
specific equipment. (This wording includes trailers.)
5.
Other vehicles that are not self
-
propelled and are maintained primarily to provide mobility to
specific pe
rmanently attached equipment.
6.
Vehicles not otherwise described maintained primarily for purposes other than the transportation
of persons or cargo.
Describe what coverage triggers for Symbol 1 - CORRECT ANSWER liability for any auto
-provides the broadest coverage possible
-can be used when no owned autos, and umbrella -calls for underlying auto coverage
Describe what coverage triggers for Symbols 2, 3 & 4? - CORRECT ANSWER Liability, Physical Damage, Medical Payments, Personal Injury Protection, Uninsured Motorists -for owned autos (of same type) acquired during the policy period.
2 - owned auto
3 - owned private passenger, *Symbol three includes Towing & Labor
4 - owned auto other than private passsenger
Describe what coverage triggers for Symbols 5 & 6? - CORRECT ANSWER Personal Injury Protection for autos required to have No-fault benefits in the state where they are licensed or principally garaged. - for owned autos
5- owned auto subject to no fault law
6- owned auto subject to UM, includes newly acquired autos
Describe what coverage triggers for Symbol 7? - CORRECT ANSWER Autos Only Liability, Physical Damage, medical Payments, Personal Injury Protection, Uninsured Motorists - for specifically described autos only
*triggers coverage for autos scheduled in decs
*liability for trailers the name insured does not own while attached to schedule auto
Describe what coverage triggers for Symbol 8? - CORRECT ANSWER Liability, Physical Damage - for hired autos
*Excludes autos those from employees, partners of LLP, members of LLC or members of their household
Describe what coverage triggers for Symbol 9? - CORRECT ANSWER liability for non-owned autos
*for autos the name insured DOES NOT own, lease, hire, rent or borrow and used in business
*owned by insured employees, partners, members, and member of household used in business or personal affairs
Describe what coverage triggers for Symbol 19? - CORRECT ANSWER liability coverage for autos that would qualify as mobile equipment
*Mobile Equipment Subject To Compulsory Or Financial Responsibility Or Other Motor Vehicle Insurance Law Only
What endorsement would be used to customize coverage on those vehicles fairly new? - CORRECT ANSWER Symbol 10
What symbols are used for automatic coverage? - CORRECT ANSWER Symbols 1, 2-6 or 19
*Autos you acquire after the policy begins
What symbols are used for schedule coverage? - CORRECT ANSWER Symbol 7
*Specifically scheduled in item 3 of BAP dec, must tell insurance company within 30 days after acquired
List reason insured can use certain trailers, mobile equipment and temporary substitute autos if because of - CORRECT ANSWER breakdown
repair
servicing
loss or
destruction
List example of an automatic symbol coverage - CORRECT ANSWER Name insured has symbol 2, used to trigger liability, comp and collision. If name insured acquires an additional auto that has liability, comp and collision under the policy for the remainder of policy period, insured doesn't need to report newly acquired auto.
premium will be picked up at audit
List example that doesn't qualify automatic symbol coverage - CORRECT ANSWER name insured has symbol 3. if name insured acquires a panel truck there is no automatic coverage because the panel truck is not a passenger auto
What 2 conditions must be met for Symbol 7 to apply? - CORRECT ANSWER 1.
All "autos" the named insured owns must be insured by the insurance company for that coverage;
or it replaces an "auto" the named insured previously owne
d that has coverage
and
2.
This named insured must tell the insurance company within 30 days after acquiring the "auto" that
the named insured wants that coverage.
*If both are met the newly acquired auto is additional unit, will automatically have the coverage that all owned autos have.
List an example of symbol 7 limited coverage for new auto - CORRECT ANSWER Name insured owns 9 autos with symbol 7. All 9 have liability, 8 have comp, one has specified cause of loss. 6 have collision. if the name insured acquires 10th auto, will only have automatic liability coverage, because all 9 have at least liability.
*will only extend automatically for 30 days
List an example of symbol 7 limited coverage for replacement auto - CORRECT ANSWER name insured has 2 autos, both have symbol 7. 1st vehicle has only liability. 2nd vehicle has liab. and collision. if name insured acquires a replacement or 1st vehicle, new auto only has liability for max. of 30 days
*Must inform insurer within 30 days after purchase
*Physical damage does not apply until notified that physical damage is wanted
What happens for Symbol 7 if late reported to insurance company for new auto? so if acquired on Mar 1st, and doesn't tell insurance company until Aug 15? - CORRECT ANSWER No coverage is in place for the newly acquired auto. Coverage requested will now begin on Aug 15.
What 3 types of insureds are afforded coverage in auto form? - CORRECT ANSWER 1. "You"
2. Permissive Users of Covered "Autos"
3. Others Who Have Vicarious Liability
Describe what a permissive user is? - CORRECT ANSWER individual who are using a covered auto with name insured permission
Explain Drive Other Car Coverage - Broadened Coverage for Named Individuals (CA 99 10) endorsement - CORRECT ANSWER Typically used to provide non-owned coverage similar but not identical to that provided by a Personal Auto Policy for an individual. This individual is typically a corporate officer or key employee who is provided a
company car but does not own a personal auto and does not have a Personal Auto Policy.
-There is a premium charge for each named individual.
-All BAC Form's exclusions apply; none are removed.
Explain Individual Named Insured (CA 99 17) endorsement - CORRECT ANSWER This endorsement is added to a Business Auto Policy when the named insured is an individual; and at least one of the covered autos is a private passenger type auto.
Explain Employees as Insureds (CA 99 33) endorsement - CORRECT ANSWER This endorsement addresses the exclusionary language that states an employee is not an insured
while driving a covered "auto" owned by that employee or a member of that employee's
household.
-Liability coverage is provided on an excess basis.
Explain Employee as Lessor (CA 99 47) endorsement - CORRECT ANSWER This endorsement is used to treat an "auto" hired, borrowed or leased by the named insured as an
owned "auto".
Explain Designated Insured (CA 20 48) endoresment - CORRECT ANSWER This endorsement was developed to give insurers a way to respond to requests to specifically show
a person or organization as an additional insured.
-allows insurance co. to list
Explain Lessor -Additional Insured and Loss Payee (CA 20 01) endorsement - CORRECT ANSWER This endorsement is used to treat an auto leased by the named insured as an owned "auto".
What does the 1st paragraph of BAP insuring agreement state? - CORRECT ANSWER Insurance company will pay all sums
that an insured must legally pay because of:
•"Bodily injury" or "property damage";
•That arises from the ownership, maintenance, or use of a covered "auto
•Caused by an "accident"; and is
•Not excluded by this Policy.
What does the 2nd paragraph of BAP insuring agreement state? - CORRECT ANSWER insurance company will pay "covered pollution cost or expense" caused by an "accident" resulting from the ownership, maintenance or use of a
covered "auto".
What does the 3rd paragraph of BAP insurance agreement state? - CORRECT ANSWER besides paying for covered "accidents", the insurance company has the right and the duty to defend any insured against a "suit" seeking covered damages or covered cleanup costs. If there is no coverage, the company does not have to defend. The company can investigate and/or settle any claim as it sees fit. Once the insurance company has paid the Limit of Insurance, it no longer has a
duty to defend.
List 6 Types of BAP supplementary payments (coverage extension) - CORRECT ANSWER 1. behalf of the insured while investigating, settling,
and/or defending the insured
2. bail bonds - up to $2,000
3. cost of bonds for release of attachments made against the insured
4. reasonable expenses that the insured incurs at the company's request. - up to $250 per day for lost earnings because of missed work
5. court costs taxed against the insured
6. post judgement interest
List 2 types of coverage extensions under "Out of State coverage" - CORRECT ANSWER 1. Higher limits than policy limits to comply with the laws where the "auto" is being used. However
this extension does not
apply to the laws governing motor carriers of passengers or property.
2. Additional benefits, such as no fault or mandatory personal injury protection, required of out-of-state vehicles by the jurisdiction where the covered "auto" is being used.
List BAP exclusions - CORRECT ANSWER 1.Expected Or Intended Injury
2.Contractual
3.Workers Compensation
4.Employee Indemnification And Employer's Liability
5.Fellow Employee
6.Care, Custody Or Control
7.Handling Of Property
8.Movement Of Property By Mechanical Device
9.Operations
10.Completed Operations
11.Pollution
12.War
13.Racing
Specified cause of loss coverage is for loss caused by: - CORRECT ANSWER •Fire, lightning, or explosion;
•Theft;
•Windstorm, hail or earthquake;
•Flood
•Mischief or vandalism; or
•The sinking, burning, collision, or derailment of any conveyance transporting the covered "auto"
BAC Form Physical Damage Coverage -We Will Pay - CORRECT ANSWER for "loss" to a covered "auto" or its equipment.
Three types of coverage are offered.
1. specified causeof loss
2. collision
3. comphrensive
Collision Coverage is for collision with - CORRECT ANSWER another object of overturn
*most companies required one of 2 coverages (comp, or SCL) before they will include collision
Describe physical damage coverage - Towing & Glass Breakage - CORRECT ANSWER can be purchased for private passengers only.
includes labor cost performed at the place of disablement
Describe physical damage coverage -Glass breakage - Hitting a Bird or Animal - falling Objects or missiles - CORRECT ANSWER covered under comprehensive coverage if name insured purchased
-has option of having glass breakage coverage under collision is caused by collision or overturn
-loss covered by hitting a bird, or animal and loss caused by missile or falling option will be covered under comp
Describe physical damage coverage extension - transportation Expenses - CORRECT ANSWER pays for transportation expenses max $20 per loss max $600 (because of total theft of an auto of private passenger)
48 hour waiting period
Describe physical damage coverage extension - Loss Of Use Expenses - CORRECT ANSWER covers or loss of use resulting from physical damage to rented or hired autos when insured becomes legally responsible under written contract.
- must show symbol 8 (hired autos) in order to collect
$20 per day, subject to max $600
Name BAC form Physical Damage Exclusions - CORRECT ANSWER 1. Specified cause of loss - Nuclear hazard, contamination, war
2. Specified activities - professional/organized racing
3. Specified perils to specific equipment - loss caused from wear and tear
4. Specified types of equipment - tapes, speed measure, transmit audit, visual data signals
5. Accessories used with electronic equipment
6. Not pay for loss covered due to diminution in value
Explain how limits of insurance on BAC policy apply? - CORRECT ANSWER 1. The insurance company will pay the smaller of:
o Actual cash value at the time of the "loss"; or
o The cost of repairing or replacing with like kind and quality.
2. $1,000 is the most that will be paid for "loss" in any one "accident" to all covered electronic
equipment that reproduces, receives or transmits audio, visual or data signals which at the time of
loss is permanently installed in housing or location that is not normally used by the "auto"
manufacturer for the installation of such equipment.
3. The insurance company can adjust for depreciation.
4. The insurance company does not have to pay for betterment.
List Example of how insurance company will pay in event of BAC loss - CORRECT ANSWER Some sales reps, adjustors, fire, EMS, or law enforcement workers install AVD equipment in areas of an "auto" not intended for such use by the manufacturers. In the event of a loss this equipment is limited to $1,000.
List example of how BAC deductible would be applied? - CORRECT ANSWER Hail damages several autos parked at a single location. The deductible applies to each covered "auto".
What are 2 types of BAP conditions that apply in additional to common policy conditions? - CORRECT ANSWER Loss Conditions
General Conditions
List types of BAP - Loss Conditions - CORRECT ANSWER -Appraisal For Physical Damage Loss
-Duties In the Event Of Accident, Claim, Suit Or Loss
-Legal Action Against Us
-Loss Payment - Physical Damage Coverage
-Transfer of Rights of Recovery Against others to Us.
Describe Loss BAP Condition - Appraisal for Physical Damage Loss - CORRECT ANSWER The named insured and insurance company only enter the appraisal provision when there is a disagreement on the amount of "loss" under Physical Damage Coverage.
The decision reached through this process is binding on both the named insured and the
insurance company.
List Types of BAP - General Conditions - CORRECT ANSWER -Bankruptcy
-Concealment, Misrepresentation or Fraud
-Liberalization
-other insurance
-policy period, coverage territory
Explain BAP General Condition - Other Insurance - CORRECT ANSWER The other insurance condition states that coverage
under this BAP is primary for the named insured's
owned covered "autos" and excess for any other
covered "auto".
The exception is liability coverage will be primary if liability arises from an "insured contract". If Physical Damage Coverage is purchased for hired autos, then the hired "auto" is considered owned. If two BAPs apply, payment under the Policy is pro rata.
List the 2 conditions that allow the coverage territory to be anywhere in the world on a BAP - CORRECT ANSWER 1. A covered "auto" of the private passenger type auto is leased, hired, rented, or borrowed (without a driver) for a period of 30 days or less;
and
2. The insurance company agrees to a settlement or where damages are awarded in a "suit" brought
in the coverage territory described above.
Mexico is not included
What are the 4 types of benefits provided by WC? - CORRECT ANSWER 1. Medical Expense
2. Disability Income
3. Rehabilitation Expenses
4. Death Benefits
What states do not require employers to carry WC insurance? - CORRECT ANSWER New Jersey & Texas
If NJ rejects WC, then must purchase employers liabiltiy
What is the definition of a monopolistic state? - CORRECT ANSWER a state where employer can purchase WC only from the state.
the 4 states are: North Dakota, Ohio, Washington & Wyoming
True or False - Monopolistic States Fund provides employers liability insurance - CORRECT ANSWER False
What is the most important item in the WC information - CORRECT ANSWER Item 3
•Item 3.A Workers Compensation Insurance(mono. states cannot be listed here)
•Item 3.B Employers Liability Insurance
•Item 3.C Other States Insurance
•Item 3.D Endorsements and schedules
What does Item 3.B. of WC information page list? - CORRECT ANSWER example:
1. $100,000 (bodily injury by accident) Each Accident
2. $500,000 (bodily injury by disease) Policy Limit
3. $100,000 (bodily injury by disease) Each Employee
What does item 3.C. Trigger? - CORRECT ANSWER Other States Insurance.
Policy responds as if the 3.C. state were in 3.A. state (mono. states cannot be listed in 3.C.
What is the purpose of item 3.D? - CORRECT ANSWER policy endorsements/schedule are listed in this section
What does Item 4 of information Page Entail? - CORRECT ANSWER WC and EL rating data
What does item 1 of information page entail? - CORRECT ANSWER Name insured, entity, mailing and work locations
What does item 2 of information page entail? - CORRECT ANSWER Policy period
explain paraghraph A of WC insurance applies? - CORRECT ANSWER This is the insuring agreement
for workers compensation insurance, which says the Policy will pay for:
-Bodily injury by accident occurring during the policy period
-Bodily injury by disease caused by or aggravated by conditions of employment
explain paragraph B of WC insuring agreement? - CORRECT ANSWER Paragraph B. We Will Pay informs us that the insurer will "pay promptly when due the benefits
required...by the workers compensation law".
The named insured has this coverage for those states listed in Item 3.A. of the Information Page of the Policy.
What does paragraph CDE of WC insuring agreement explain? - CORRECT ANSWER address the right and duty to defend, supplementary payments and other
insurance provisions.
explain "Payments you must make" in part one of WC insurance - CORRECT ANSWER You means - employer
1. Payments required because of the serious and willful misconduct of the named insured.
2. Payments required for an employee who the named insured knowingly hired in violation of law.
3. Payments required when the named insured failed to comply with a health or safety law or
regulation.
4. Payments required when the named insured discharges, coerces, or otherwise discriminates
against any employee in violation of the state's workers compensation law.
List 4 types of employer liability claims - CORRECT ANSWER 1. third party claims or third party action over claims'
2. dual capacity claims
3. consequential bodily injury claims
4. Loss of care and services claims
Provide an example of Third party Claim? - CORRECT ANSWER An employee of Polly's Plastics is injured by a piece of machinery in the manufacturing plant. The
employee collects workers compensation benefits and then also sues the manufacturer of the
machinery in a products liability suit.
The manufacturer looks to
the Polly's Plastics for reimbursement and/or contribution because Polly's
supervisor removed all of the safety guards from the machinery.
Explain Dual Capacity claim? - CORRECT ANSWER These claims are claims in which the employee sues the employer in some capacity other than that of employer, such as a manufacturer of a defective product, owner of a premises, etc.
Provide example of dual capacity claim - CORRECT ANSWER An employee is injured while in the course of employment when a defectively manufactured ladder collapses. The employer is the manufacturer of that ladder. The employee files a workers compensation claim with the employer AND also sues his/her employer as the manufacturer of the ladder for the injury arising out of the defective product.
Explain Bodily Injury Claim - CORRECT ANSWER These claims involve bodily injury damages suffered by a family member arising out of the employee's job-related injury/disease.
Explain Care and Loss of Services (AKA Loss of Consortium) claim - CORRECT ANSWER These are claims for damages suffered by a family
member arising out of the loss of services that the
injured/sick employee provided.
Provide example of care loss of services claim? - CORRECT ANSWER The child of an injured employee sues for loss of companionship and the loss of services
provided by the parent, which resulted from the employee's injury.
What are following options for providing employer liability for monopolistic states? - CORRECT ANSWER Endorse a Workers Compensation and Employers Liability Insurance Policy written for non-
monopolistic states with an Employers Liability Coverage Endorsement; or
Endorse a CGL Policy, if there is one, with a Stop Gap -Employers Liability Coverage Endorsement; or
Purchase a separate policy with Employers Liability Insurance for the monopolistic state.
True or False - the name insured must inform the insurance company at once if they begin work in any state listed in item 3.C? - CORRECT ANSWER True
What does provision of coverage part 3 - three other states insurance say if name insured has work on effective date of policy in any state NOT identified in 3.A.? - CORRECT ANSWER no coverage will be afforded unless the insurance company is notified within 30 days from effective date.
Explain Employers Liability Coverage Endorsement WC 00 03 03 C - CORRECT ANSWER provides EL insurance for states not included in the issued WC/EL policy
primarily used when WC is purchased in monopolistic state fund
Explain Longshore and Harbor Workers' Compensation Act Coverage Endorsement WC 00 01 06 A - CORRECT ANSWER coverage for land based employees who work on wharves, piers, docs and bridges.
benefits are higher
includes harbor workers, shipbuilders, ship breakers and ship repairers
Explain Outer Continental Shelf Lands Act Coverage Endorsement WC 00 01 09 B - CORRECT ANSWER provides WC and EL for work on outer continental shelf. usually drilling rigs and or platforms
Explain Maritime Coverage Endorsement WC 00 02 01 A - CORRECT ANSWER provides EL for employers who have maritime exposures.
applies to BI to mate or crew members of vessel and NI that occur in operation of vessel
Explain Foreign Coverage Endorsement - CORRECT ANSWER applies to employees hired in the US while traveling temporarily (90 days or less) residing outside the US, it's territories, possessions PA or CAN
What two coverages are offered with Foreign Coverage Endorsement? - CORRECT ANSWER 1. Endemic Disease
Endemic disease is covered as a
work-related injury/disease. Endemic disease means a disease that
is infectious and generally recognized as a health
hazard, is restricted to a peculiar locality,
and is not caused by or
aggravated by the conditions of
employment. An example is yellow
fever.
2. Repatriation Expenses
Coverage also pays for repatriation expenses, which are costs for transporting the injured
employee to a medical facility or home.
List 3 primary reasons for the need of higher liability policies? - CORRECT ANSWER 1. Public Attitude
2. Law of Negligence
3. Jury Attitude
Explain "self insured retention" - CORRECT ANSWER dollar amount listed on the declarations page that will be paid by the insured before this insurance becomes applicable
only applies if insurance is provided by umb. policy, but not by underling polices
What are the 3 types of umbrella forms? - CORRECT ANSWER 1. True umbrella policy
2. follow form excess policy
3. stand alone excess liability policy
What are the typical required underlying policy limits? - CORRECT ANSWER GL Agg - $2M
PCO Agg - $2M
Occ - $1M
PA $1M
Bus. Auto $1M
EL $500/$500/$500
Describe "Ultimate Net Loss" - CORRECT ANSWER Types of payments, including expenses that policy pays
means the total amount for the insured the insured is found liable for a covered "incident"
Retained Limit covered as self insured retention in respect to: - CORRECT ANSWER a. "Bodily injury" or "property damage" caused by an "occurrence"; or
b. "Personal and advertising injury" sustained by any one person or organization and caused by
an "offense."
Explain - Retained Limits defined as indemnity payments are applied? - CORRECT ANSWER any payments made for defense costs or other expenses that are inside the underlying policy limits do not count toward the retained limit
this leaves potential gap in coverage
Explain the definition of occurrence in umbrella policy - CORRECT ANSWER "Occurrence" means an accident, including continuous and repeated exposure to conditions, which result in personal injury, property damage or advertising injury neither expected nor
intended from the standpoint of the insured.
Explain definition of occurrence - batch clauses - CORRECT ANSWER continuous or repeated exposures to
the same general harmful conditions" are indicating different consumers are
each one occurrence.
What two situations does affirmative duty to defend by umb company apply? - CORRECT ANSWER 1. When no underlying insurer is obligated to defend because the damages are not covered by the
underlying insurer but are covered by the excess liability policy/umbrella liability policy; or
2. When no underlying insurer is obligated to defend because the underlying insurance has been exhausted in accordance with its terms and conditions.
Describe "first dollar defense" - CORRECT ANSWER When defense coverage applies within the SIR, this is commonly known as the first dollar defense
List 3 types of ways umbrella aggregate an be applied - CORRECT ANSWER •Combined single limit policy aggregate
•Separate aggregates apply to selected coverages
•Aggregates follow aggregates in the underlying
Describe Combined single limit policy aggregate - CORRECT ANSWER one aggregate that applies. For example, while the underlying Business Auto Policy has no aggregate limit, the excess liability policy/umbrella liability policy has an aggregate limit that applies to auto claims as well as any/all other claims. All claims under the policy reduce the aggregate limit
.
Describe Aggregates Follow Aggregates in the Underlying Policies - CORRECT ANSWER If there is an aggregate in the underlying policy that applies, there is an aggregate in the excess
liability/umbrella liability policy as well. But it doe
s follow the aggregate in the underlying as the
aggregate applies in the underlying.
List 3 types of umb coverage territory - CORRECT ANSWER 1. Policy is silent as to coverage territory
-does not define coverage territory
2. Coverage territory is worldwide
- to restriction where suits file
3. Coverage territory is limited worldwide
- restrict where suits on merits are filed
"Maintenance of Scheduled underlying conditions" states: - CORRECT ANSWER except for any reduction or
exhaustion of liability in the scheduled underlying insurance provided such reduction or exhaustion
is solely the result of happenings taking place during this policy period, and not before.
... "If the insured fails to maintain scheduled underlying insurance, this condition shall not invalidate this policy, but in the event of such failure, we will only be liable to the same extent as if the insured had maintained the scheduled
underlying insurance."
List excess liability exclusions - CORRECT ANSWER 1. Expected or Intended Injury
2. aircraft
3. watercraft
4. property in care, custody or control
5. employment related practices
6. injury to fellow employee
7. ERISA (employee benefits liability)
8. Punitive Damages
9. Pollution
10. Uninsured Motorists and Underinsured motorists
11. Asbestos
What does "Property Damage" Mean? - CORRECT ANSWER damage to or loss of use of tangible property
What is definition of "trailer" - CORRECT ANSWER includes semi trailer
What is "no fault" benefits? AKA Personal Injury Protection - CORRECT ANSWER insured makes their own automobile insurer pay for insured and passenger's medical bills, lost earning and certain out of pocket damages after a car accident
not available in all states, required in others
What is an "owned auto" - CORRECT ANSWER Name insured owns that auto to use for business
what is a "non owned own" - CORRECT ANSWER vehicle not owned by business insured, and is owned by an individual
what is a "hired" auto? - CORRECT ANSWER name insured needs to rent to use in business. example is commercial van.
For symbols 2-4 what is the same coverages they have across the board? - CORRECT ANSWER Liability
Physical Damage
Med pay
Personal injury protection (No fault)
Uninsured motorist
If BAP includes liability coverage, which 3 types of vehicles automatically have liability coverage at no additional premium? - CORRECT ANSWER Trailers
mobile equipment
temporary substitute
Define who is an insured "you" is in BAC - CORRECT ANSWER -"You" refers to the named insured shown in the Declarations. If the named insured is an individual, there is no automatic coverage for any spouse or for any other relative, but the named insured is an insured for any covered "auto".
-A few states do have mandatory provisions that make persons other than the named individual (resident spouse, estate executor) a "you".
-The named insured receives the broadest coverage.
Define who is an insured "Others Who Have vicarious Liability" - CORRECT ANSWER anyone who is legally responsible for the conduct of any insured identified as name insured or a person who qualifies as a permissive drive
List 5 types of permissive users that do NOT get coverage under BAP Forms - CORRECT ANSWER 1. Owner of rented or borrowed covered "auto"...
2. Employee using his owned "auto"...
3. Any individual working in the auto business...
4. Loading and unloading a covered "auto" by a non-employee...
5. Partner (of partnership) or a member (of LLC) using his owned "auto"...
what is the definition of "attachments" with the supplementary #3 (bonds for release of attachments made against the insured) - CORRECT ANSWER legal proceedings where a defendant files and gets a legal claim against the insured's assets to assure value to pay for any judgement and/or claim)
BAC as with all exclusions, coverage is excluded for: - CORRECT ANSWER exposures better covered under other types of policies,exposures covered by endorsement for an additional premium, or exposures that are not insurable under any policy or endorsement. [Show Less]