Chapter 7

Question 1

Commercial vehicles

Answer 1

They may carry freight or people. Hauling commodity is transporting passengers for compensation or transporting large numbers of employees and vehicles, such as buses. For freight, a bill of lading lists, the commodities being hauled, and it specifies the carriers responsibility for such good while in his care, custody or control.

Question 2

Carriers

Answer 2

– Common carrier offer services for hire
– Private carrier transport their own goods with their own vehicles
– Contract carrier transports merchandise, under an individual contract or a limited number of customers
Owner operators, a truck driver who owns the vehicle who works under contract for a carrier

Question 3

Fleet insurance

Answer 3

SAF1 form is used With a vehicle and drivers list attached
At least five power (engine) units or more
The premium charged will not be based on each unit, but rather on the fleet and so will be less than the total sum if they were individually rated

Question 4

SAF1 form

Answer 4

Driver hiring and training practices,
loss and claims reports
maintenance programs

Vehicle list-GVW, list price,operations radius, attached equipment, purpose, commodity being hauled

Trailers used in connection with power units are assessed as third-party liability. Usually 10% of the third-party liability premium charged for that power unit physical damage coverage of the trailer must be purchased separately.

If the vehicle such as a tractor is specifically designed to haul trailers, they will be on a list of vehicles to be insured

Complete list of drivers-Length of time they have been employed(similar driving experience will be considered in the same field) Drivers abstract is required

Number of years, the organization has successfully been an operation maintenance program and how well documented it is driver files and accident claims records while organized. For high-risk operations insurer may require an in person loss control inspection to provide a comprehensive report to the insurer.

Question 5

Garage automobile policy SPF4

Answer 5

Provides a third-party liability and physical damage coverage for both owned and non-owned vehicles for dealerships, auto body repair vehicle maintenance parking or storage services

Coverage includes
– Third-party
– accident benefits
– Loss of or damage to owned vehicles
– Legal liability for damage to a customers automobile while in the care of the insured
General provisions, definitions, and exclusions
– Statutory conditions