Crs Auto Insurance

Question 1

BAP

Answer 1

Business Auto Policy is something that almost all insurance carrier who write commercial auto coverage use. It utilizes the Business Auto Coverage FOrm, which details the insured’s commercial auto coverage. There are five sections.

Question 2

5 Sections of BAP

Answer 2

1) Covered Autos
2) Auto Liability Coverage
3) Physical Damage Coverage
4) Business Auto Conditions
5) Definitions

Question 3

Covered Auto Designation Symbols

Answer 3

If an insured experiences an auto accident, the auto(s) involved may or may not be covered by the commercial auto policy. The autos that will be included is declared by the covered auto designation symbols specified in the policy. The most common symbols are 1-9:
1- any auto
2- all owned autos
3- owned private passenger autos
4- owned commercial vehicle autos
5- provides no-fault coverage for all owned
6- provides uninsured motorist coverage for all owned autos
7- scheduled autos
8- hired autos (No coverage if hired from employees, partners or members)
9- non-owned autos

Question 4

Commerce Auto Inurance policy consists of two main coverage:

Answer 4

Covered Autos Liability Coverage

Physical Damage Coverage

Question 5

Covered Autos Liability Coverage of the BAP

Answer 5

Provides protection from claims for bodily injury and property damage.

The types of autos that can have covered autos liability coverage:
Autos the insured owns
Autos the insured doesn’t own but uses for business
Autos the insured hires or borrows

Question 6

Physical Damage Coverage (don’t get confused with property damage, which is third-party) of the BAP

Answer 6

Provides coverage for the first-party for damages to or the complete loss of an insured’s covered auto.

Three types of coverage:
Comprehensive
Specified causes of loss
Collision

Question 7

Physical Damage Coverage: Comprehensive

Answer 7

Includes physical damage coverage for any accident other than a collision with another object or overturn. Example: Vandalism, theft, or hail

Question 8

Physical Damage Coverage: Specified Causes of Loss

Answer 8

Includes physical damage coverage for 6 specific types of causes (referred to as perils). This is a cheaper alternative to comprehensive coverage.

Question 9

Physical Damage Coverage: Collision

Answer 9

Includes physical damage coverage for a collision or overturn.

Doesn’t include damage from theft or vandalism. Does not cover damage paid from another at-fault driver’s policy.

Can only be bought in conjunction with liability and comprehensive coverage.? according to a website- check on this

Question 10

Medical Payments Coverage: Additional Auto Coverage

Answer 10

This is a no-fault coverage that pays for an injured passenger in the insured’s vehicle for reasonable and necessary medical or funeral expenses. Will also pay for:
Surgical
Dental
Chiropratactics

Question 11

Personal INjury Protection Covarege: Additional

Answer 11

Found only in no-fault states. Pay for an injured passenger in the insured vehicle for reasonable and necessary medical or funeral expenses; however, PIP provides more extensive coverage than medical payments. Covered by PIP:
Rehab
Psychiatric Treatment
Other Professional Health Services
Lost Wages
Child Care

Question 12

Uninsured Motorist and Underinsured MOtorist Coverage: Additional

Answer 12

Used to add coverage for bodily injury or property damage the insured may incur in an accident where the at-fault third-party driver doesn’t have insurance or has very little insurance coverage.

Question 13

8 Types of limits found in commercial auto policy:

Answer 13

1) covered autos liability BI Per Person- most the carrier will pay for EACH third-party person that sustained bodily injury damages in a single accident
2) Covered Autos Liability BI Per Accident- bodily injury damage in a single accident, similar to a per-project aggregate limit, it acts as a per-accident aggregate limit
3) Covered AUtos Liability PD- for all third party property damage in a single accident

4) Physical Damage- to the insured’s covered auto in a single accident; also specifies that the coverage amount is limited to the cheapest option between the following: the actual cash value of the damaged/stolen property—- the cost of repairing/replacing the damaged/stolen property
UIM that sustained bodily injury damages in a single accident

5) UM/UIM BI Per Person- for each UM/UIM BI damages in a single accident
6) UM/UIM BI Per Accident- for ALL UMUIM BI in a single accident. Similar to a per-project aggregate limit, it acts as a per-accident aggregate limit, or the cap for the amount an insurance carrier must cover.
7) UM/UIM PD- for all UM/UIM PD in a single accident

8) Combined Single Limit- provides a more lenient option for payment to be applied to an accident. Instead of having to determine individual limits to those above, it is a combined single limit for ALL damages in an accident. This can be opted for when applying limits in two circumstances:
1) when setting limits for covered autos liability coverage (it combines the following limited into one- covered autos liability BI Per Person Limit, Covered Autos Liability BI Per Accident, and Covered AUtos Liability PD)
2) when setting limits for UM/UIM Liability Coverage (it combines the following limits into one: UM/UIM BI Per Person, UM/UIM BI Per Accient, and UM/UIM PD)

Question 14

California Commercial AUto Required Coverage and Limits:

Answer 14

Required: Covered AUtos Liability
Minimum Limts:
$15,000 BI/Person
$30,000 BI/Accident
$5,000 PD/Accident

Question 15

Primary and Non-Contributory Endorsement

Answer 15

Often included with an additional insured endorsement; stipulates how claims will be handled if the additional insured’s policy and the insures policy both offer coverage for a claim.

The Primary component specifies that the insured’s policy carrier will be the one to cover any losses up to the policy limit, not the additional insured’s policy carrier.

The Non-on tributary states that the insured’s policy carrier will not seek a portion of the covered losses from the additional insured’s policy carrier. Only if the insured’s policy limits have been reached would the additional insured’s policy cover the additional losses in a claim.

Question 16

Waiver of Transfer of Rights of Recovery Agianst Others to Us (Waiver of Subrogation Endorsement)

Answer 16

Can be equated to the WC waiver of Subrogation endorsement where one party agrees to waive its right to pursue the other party in the case of a loss. Two versions: Scheduled and Blanket

Question 17

Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage Endorsement

Answer 17

Used to add coverage for damages the insured may incur in an accident where the at-fault driver does not have UM or has very little, UIM, auto liability coverage. Some states require UM and UIM by law.

Question 18

Auto Policy Premium: Needs Driver Schedule, MVRs, and Vehicle Schedule and a policy history

Answer 18

When writing a commercial auto policy, sales payroll or cost figures aren’t used to calcite the premium.
The exposures used to calculate premium are the number of drivers, the quality of drivers, and the number of vehicles used for their operation. So, it it necessary for the insured to provide:
a driver and vehicle schedule.

Once collected you can run the motor vehicle report to collect additional driving record info required by the insurance carrier.

Lastly, the history of the insured’s policies. A loss run report is used to assess the risk of an insured. Typically uses the last 5 policy periods in their policy premium calculations

Question 19

Driver Schedule

Answer 19

Three pieces of info is needed:
Full name
Date of birth
Drivers license

Question 20

Vehicle Schedule

Answer 20

Info needed:
Year
Make
Model
VIN
Garage Location (storage)

Question 21

Motor Vehicle Report

Answer 21

This is ran once the driver schedule has been received. A motor vehicle report provides the insurance carrier with additional driver in for needed to assess the risk of insuring the insured and calculating the policy premium. The MVR contains:
Drivers License
Traffics Violations
Personal Info

Question 22

Currently Valued Loss Run Report

Answer 22

Updated within 90 days of when the insured’s proposed policy period would begin.

Question 23

Expense Recovery

Answer 23

The amount recovered by the insurance carrier from the at-fault party’s insurance carrier(s) for expenses.

Question 24

Deductible Recovery

Answer 24

Amount recovered by the insurance carrier from their insured’s do deductible payment.

Question 25

Salvage Recovery

Answer 25

The damaged property’s salvage value deducted from the claim.
The insurance company has the right to a portion of the damaged property covered in the claim. If they decide to leave this prop try with the insured, the salvage value can be deducted from the claim.

Question 26

Subrogation Recovery

Answer 26

Amount the insured’s Inurance carrier recovers from the at-fault party’s insurance carrier through Subrogation.

Question 27

Auto ACORD Forms Needed:

Answer 27

ACORD 125- the foundation of all commercial applications

127- details an insured’s drivers and other necessary business operations

129- provides carriers with additional vehicle info needed- vehicle schedule

137- provides insurance carriers with the insured’s commercial auto coverage limits

Question 28

Business Auto Conditions of the BAP

Answer 28

The Conditions section consists of two parts.

The first applies to losses. It explains your obligations under the policy if an accident, claim or loss occurs. It also explains how physical damage losses are assessed and paid.

The second set of conditions is more general. For instance, it defines the coverage territory, and explains how your policy will apply when other insurance exists.

Question 29

Definitions of the BAP

Answer 29

The last section contains the policy definitions. This part of the form explains the meaning of key terms in the policy, like auto and mobile equipment.