Insurance & Liability Requirements Flashcards
7 cards from real Chauffeur License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Insurance & Liability Requirements flashcards as text
Which type of liability coverage pays for injuries to passengers injured in your chauffeured vehicle?
Answer: Bodily injury liability
Bodily injury liability covers medical expenses and legal costs when passengers or third parties are injured due to the driver's fault.
A chauffeur company operates 8 vehicles for hire. Under the FMCSA, what minimum liability insurance is generally required for vehicles with a seating capacity under 16 passengers?
Answer: $1,500,000 per occurrence
FMCSA requires a minimum of $1,500,000 per occurrence liability for vehicles with fewer than 16 passenger seats used in for-hire transportation.
What does 'occurrence-based' liability insurance mean for a chauffeur operator?
Answer: Coverage applies only during the policy term when the incident occurred
Occurrence-based policies cover claims from incidents that happened during the policy period, even if the claim is filed after the policy expires.
A passenger slips and falls while boarding your limousine. Which coverage would most likely apply to their medical expenses?
Answer: Bodily injury liability or medical payments coverage
Bodily injury liability or medical payments coverage applies to injuries sustained by passengers, including those occurring while boarding or exiting the vehicle.
Why must chauffeur operators carry higher liability limits than personal auto drivers?
Answer: They carry paying passengers, creating greater legal exposure and potential for multi-claimant lawsuits
Transporting paying passengers exposes operators to greater liability because multiple people can be injured in a single incident, each with separate claims.
Which insurance term refers to the maximum amount an insurer will pay for all claims during a policy period?
Answer: Aggregate limit
The aggregate limit is the total maximum an insurer will pay for all covered claims combined within the policy period.
If a chauffeur's insurance policy lapses, what immediate consequence typically occurs under most state regulations?
Answer: The chauffeur license or operating authority may be suspended immediately
Most states require proof of continuous insurance for licensed chauffeurs and will suspend operating authority if coverage lapses.