Business auto covered auto symbols

Find the coverage the stem asks about (liability, PIP, physical damage) and the symbol shown beside it, then match the number to its group of autos.

Notes on each optionCommit to an answer first. The notes under the item then open on every option: what rules it in or out, and the one word that splits the runner-up from the key.

1. Item 01

   A consulting firm rents a car at the airport for an employee's sales trip. Which covered auto symbol on its business auto policy gives liability coverage for the rental?

   • ASymbol 9 – Non-owned autos
   • BSymbol 8 – Hired autos
   • CSymbol 2 – Owned autos only
   • DSymbol 7 – Specifically described
   1. ASymbol 9 covers autos the business does not own, rent or borrow, such as employees' own cars, so a rental is not Symbol 9.
   2. BCorrect: Symbol 8 covers autos the business leases, hires, rents or borrows, such as an airport rental.
   3. CSymbol 2 applies only to autos the business owns.
   4. DSymbol 7 applies only to autos specifically listed in the declarations.

   More notes ↓
2. Item 02

   A salesperson drives their own car to visit clients and causes an accident, and the employer is sued. Which covered auto symbol on the employer's business auto policy protects the employer?

   • ASymbol 3 – Owned private passenger
   • BSymbol 7 – Specifically described
   • CSymbol 9 – Non-owned autos
   • DSymbol 8 – Hired autos
   1. ASymbol 3 covers only autos the company owns, and this is the salesperson's own car.
   2. BSymbol 7 covers only autos listed in the declarations, not employees' personal cars.
   3. CCorrect: Symbol 9 covers non-owned autos used in the business, such as employees' own cars, protecting the employer against vicarious liability.
   4. DSymbol 8 covers autos the company itself rents or borrows, not an employee's own car.

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3. Item 03

   A company buys an additional truck mid-term and does not report it to the insurer. Which covered auto symbol for liability would automatically cover the new truck?

   • ASymbol 7 – Specifically described
   • BSymbol 9 – Non-owned autos only
   • CSymbol 8 – Hired autos only
   • DSymbol 2 – Owned autos only
   1. ASymbol 7 covers a new auto only if it replaces a covered auto or all owned autos are insured, and only if reported within 30 days.
   2. BSymbol 9 never applies to autos the company owns.
   3. CSymbol 8 covers rented or borrowed autos, not owned ones.
   4. DCorrect: Symbol 2 covers all owned autos, including ones acquired during the policy period, without reporting.

   More notes ↓
4. Item 04

   A company rents a car for a week and damages it in a collision. Its business auto policy shows Symbol 8 for liability only. Is the damage to the rental car covered?

   • AYes; property in its care is covered
   • BYes; hired auto liability includes the rental car
   • CYes; Symbol 9 non-owned coverage applies
   • DNo; hired auto physical damage wasn't bought
   1. ALiability coverage excludes property in the insured's care, custody or control, so the rental car is not covered that way.
   2. BHired auto liability covers the company's liability to others, not damage to the hired auto itself.
   3. CSymbol 9 applies to autos the company does not rent or borrow, so it cannot cover a rental.
   4. DCorrect: Symbol 8 for liability does not cover damage to the rental car, and hired auto physical damage was not bought.

   More notes ↓
5. Item 05

   On a business auto policy, covered auto Symbol 19 applies to:

   • AMobile equipment subject to motor vehicle insurance laws
   • BOwned autos subject to a compulsory uninsured motorists law
   • COwned autos other than private passenger types, including trailers
   • DOwned autos subject to no-fault laws, only while required
   1. ACorrect: Symbol 19 covers mobile equipment subject to compulsory or financial responsibility or other motor vehicle insurance laws, only while it is subject to them.
   2. BOwned autos subject to a compulsory uninsured motorists law are Symbol 6.
   3. COwned autos other than private passenger types are Symbol 4.
   4. DOwned autos subject to no-fault laws are Symbol 5.

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6. Item 06

   A company garages its vans in a no-fault state. Which covered auto symbol provides personal injury protection only for owned autos required to have it?

   • ASymbol 5
   • BSymbol 6
   • CSymbol 3
   • DSymbol 19
   1. ACorrect: Symbol 5 covers owned autos subject to no-fault laws, which is the symbol used for personal injury protection.
   2. BSymbol 6 covers owned autos subject to a compulsory uninsured motorists law, not PIP.
   3. CSymbol 3 covers owned private passenger autos regardless of no-fault status.
   4. DSymbol 19 is for mobile equipment subject to motor vehicle insurance laws.

   More notes ↓
7. Item 07

   A company rents a pickup from one of its employees for a month-long project. Under the business auto symbols, the pickup is:

   • AA non-owned auto (Symbol 9)
   • BA temporary substitute auto
   • CA hired auto (Symbol 8)
   • DAn owned auto (Symbol 2)
   1. ACorrect: hired autos exclude autos rented from employees or their households, so the employee's pickup used in the business is a non-owned auto under Symbol 9.
   2. BA temporary substitute replaces a covered auto that is out of service, and no covered auto is out of service here.
   3. CSymbol 8 specifically excludes autos leased, hired, rented or borrowed from the insured's own employees, which is the trap.
   4. DThe company rents the pickup but does not own it, so it is not Symbol 2.

   More notes ↓
8. Item 08

   An employee uses their own car on company business and causes an accident. The employee has a personal auto policy, and the employer's business auto policy includes Symbol 9. How do the policies apply to the employer's liability?

   • AOnly the employer's business auto policy responds
   • BThey share the loss pro rata by limits
   • CThe BAP is primary; the PAP is excess
   • DThe employee's PAP is primary; the BAP is excess
   1. ABoth policies apply, because the employee's PAP covers the car and anyone legally responsible for its use, and Symbol 9 covers the employer too.
   2. BThe policies do not share pro rata, because the BAP's other insurance condition makes it excess for autos the business does not own.
   3. CThe BAP is primary only for autos the business owns, and an employee's own car is not one of them.
   4. DCorrect: for a covered auto the business does not own, the BAP is excess over other collectible insurance, so the employee's PAP pays first.

   More notes ↓
9. Item 09

   A company's business auto policy uses Symbol 7 for physical damage. It replaces a covered van with a new van, which is damaged 10 days later, and the company reports it on day 20. Is the new van covered?

   • ANo; new autos must be reported within 14 days
   • BYes; a replacement reported within 30 days
   • CYes, but only for liability, not physical damage
   • DNo; Symbol 7 autos must be listed before a loss
   1. AFourteen days is the personal auto policy's reporting period, not the business auto form's.
   2. BCorrect: under Symbol 7, a replacement auto is covered if reported within 30 days after acquisition, and day 20 is in time.
   3. CPhysical damage applies too, because the new van replaces a van that had that coverage.
   4. DSymbol 7 does not require listing before a loss for a replacement auto reported within 30 days.

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10. Item 10

    An agent wants to check whether a client's business auto policy covers hired autos for liability. Which part of the policy shows this?

    • AThe definitions section of the form
    • BThe symbols shown in the declarations
    • CThe business auto conditions section
    • DThe exclusions under liability coverage
    1. AThe definitions explain what 'hired auto' means but not whether this policy covers it.
    2. BCorrect: the declarations show the symbol numbers for each coverage, and Symbol 8 there means hired autos are covered.
    3. CThe conditions apply to all covered autos and do not say which categories are covered.
    4. DThe exclusions apply to all covered autos and do not say which categories are covered.

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