RMI 4224 Chapter 11 Study Guide Commercial Auto Coverage Forms 1 Business Auto Coverage Form CA 00 01 a Liability and or physical damage coverage for owned non owned hired borrowed autos that may be used in the named insured s business operations 2 Business Auto Physical Damage Coverage Form CA 00 10 a Physical damage only b Used when named insured must split liability coverage and physical damage 3 Garage Coverage Form CA 00 05 a Dealers only b Liability and physical damage c Opportunity to provide coverage for loss or damage to customer s vehicles that are in the insured s care custody or control 4 Motor Carrier Coverage Form CA 00 20 a Protect insured s special exposures centered around transporting property or persons Business Auto Coverage Form CA 00 01 Most commonly used coverage for auto exposures faced by most businesses Consists of 1 Covered Autos 2 Liability Coverage 3 Physical Damage Coverage 4 Business Auto Conditions 5 Definitions Section I Covered Autos Coverage for owned non owned hired borrowed autos Coverage applicable is determined by symbols Symbols 1 Any auto liability only 2 3 4 Owned autos liability physical damage medical payments personal injury protection and uninsured underinsured motorists coverages 2 Owned autos 3 Owned private passenger autos 4 Owned autos other than private passenger 5 and 6 Owned autos subject to compulsory no fault or compulsory uninsured laws 7 Provides any available coverages but only for autos described in declarations for which a premium is shown 8 Hired autos named insured leases hires rents or borrows not from named insured s employees partners or members of their households triggers liability and physical damage coverages 9 non owned autos only liability coverage to autos not owned leased hired or borrowed but used in connection with named insured s business Newly Acquired Autos Automatic coverage for a newly acquired auto If symbol 7 is used then limited coverage then subject to the following conditions 1 Additional auto is provided with coverage that all owned autos have of that coverage 2 Same coverage as the auto it is replacing 3 Notification to the insurer within 30 days of acquisition Certain Trailers Mobile Equipment and Temporary Substitute Autos Coverage may be extended to certain vehicles 1 Trailers with 2 000 lbs or less load capacity designed to travel primarily on public roads 2 Mobile equipment while being carried or towed by a covered auto 3 Non owned temporary substitute for a covered auto Section II Liability Coverage Insuring Agreement Promises to pay legal obligations of the insured for bodily injury or property damage caused by an accident and resulting from the ownership maintenance or use of a covered auto Who is an Insured covered auto 1 Named insured has the broadest coverage and is granted liability coverage for any 2 Permissive users must be given permission by the named insured 3 Vicarious insured is anyone who is liable for the conduct of an insured Out of State Coverage Extensions Increases limit of insurance for liability coverage to meet the limits of the jurisdiction where the covered auto is being used Provides minimum amounts and types of coverage required where the auto is being used Exclusions 1 Expected or Intended Injury a Unlike the CGL policy there is no exception for bodily injury resulting from the use of reasonable force to protect persons or property a Stated exception to the exclusion that provides broad contractual liability 2 Contractual Liability coverage 3 Workers Compensation a Any obligation of the named insured for workers compensation benefits disability benefits or unemployment compensation or any similar law 4 Employee Indemnification and Employer s Liability a Any obligation to pay for liability arising out of work related accidents to an a Liability for bodily injury arising out of a car accident in which an employee a Property damage to property owned being transported by or in the care custody employee other than workers compensation 5 Fellow Employee negligently injures another employee 6 Care Custody or Control or control of the named insured b Applies to both real and personal property 7 Handling of Property a Damage caused before the property begins the loading process or after the property has been finally delivered from a covered auto 8 Movement of Property by Mechanical Device a If property is moved in the loading or unloading process by a mechanical device the damage arising from this movement isn t covered 9 Operations a Operations exposure of certain mobile equipment under the BAC form b Includes operations of equipment permanently attached to vehicles that are considered autos 10 Completed Operations a Arises out of completed or abandoned work a Pollution losses arising out of discharge dispersal seepage migration release or 11 Pollution escape of pollutants b There is Coverage for i Pollutants are needed for or are a result of normal electrical hydraulic or mechanical functioning of the covered auto and the pollutants are contained in an intended place ii Accident occurs and the pollutants are upset overturned or damaged as a result of the use of a covered auto a No coverage in any professional or organized racing or demolition contest or stunting activity or while practicing for such a contest or activity 12 War 13 Racing Limits of Insurance Limit of how much the insurance company will pay is found in the declarations no aggregate in the BAP Section III Physical Damage Coverage Protects against direct and accidental loss or damage to insured s owned auto or it s equipment We will pay for loss to a covered auto or its equipment Perils Options Primary coverages 1 Comprehensive coverage 2 Specified causes of loss coverage 3 Collision coverage Specified causes of loss coverage 2 above only pays if loss arises from 1 Fire lightning or explosion 2 Theft 3 Windstorm hail or earthquake 4 Flood 5 Mischief or vandalism 6 Sinking burning collision or derailment of any conveyance transporting the covered auto Coverage Extensions Transportation Expenses Loss of Use Expenses 20 per day and 600 maximum Only pay if total theft of covered private passenger auto Applies only if physical damage for hired autos is indicated in declarations 20 a day 600 maximum Exclusions 1 Nuclear Hazard 2 War or Military Action 3 Racing 4 Wear and Tear a Wear and tear freezing mechanical or electrical breakdown or road damage to tires is not covered b Any of these are caused by other