Property And Casualty Insurance License Casualty Insurance Basics 3

Question 1

Which of the following is covered by comprehensive auto coverage?

Accepted Answer

Collision with a deer

Answer

Collision with another vehicle

Answer

Collision with a guardrail

Answer

Collision with a pothole

Question 2

What does 'medical payments' (MedPay) coverage provide under an auto policy?

Accepted Answer

Payment for medical expenses for the insured and passengers regardless of fault

Answer

Coverage for the insured's vehicle repairs

Answer

Compensation for lost wages after an accident

Answer

Coverage for the other driver's medical bills only

Question 3

A 'garage liability' policy is designed for:

Accepted Answer

Auto dealers, repair shops, and service stations

Answer

Homeowners with large garages

Answer

Commercial trucking companies

Answer

Parking lot operators only

Question 4

Under a business auto policy (BAP), 'Symbol 1' means:

Accepted Answer

Any auto is covered

Answer

Only scheduled vehicles are covered

Answer

Only owned autos are covered

Answer

Only hired autos are covered

Question 5

What is 'hired and non-owned auto' (HNOA) liability coverage?

Accepted Answer

Coverage for vehicles the business rents or employees use their personal vehicles for business

Answer

Coverage for vehicles owned by the insured business

Answer

Coverage for company-owned fleets

Answer

Coverage for vehicles under lease agreements only

Question 6

Which of the following best describes 'professional liability' (E&O) insurance?

Accepted Answer

Coverage for claims arising from errors, omissions, or negligent acts in rendering professional services

Answer

Coverage for bodily injury caused by an employee

Answer

Coverage for property damage at a client's site

Answer

Coverage for employment discrimination claims