Insurance Policy & Claims Overview

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Questions and Answers

What is the Aggregate Limit of Insurance applicable to garage operations other than covered autos?

It is a fixed amount regardless of the number of claims.
It limits coverage only to damages caused by employees.
It applies to each consecutive annual period. (correct)
It only covers damages for the first insured party.

How does the period of insurance affect the Aggregate Limit of Insurance for garage operations not involving covered autos?

It is irrelevant as limits are fixed.
It extends automatically for an unlimited time.
An additional period of less than 12 months is considered part of the last preceding period. (correct)
It resets every 6 months regardless of the policy period.

What does the Aggregate Limit of Insurance for covered autos apply to?

It covers damages due to expired licenses.
It is only valid for accidents occurring outside city limits.
It involves accidents resulting from the ownership, maintenance or use of covered autos. (correct)
It only applies if there are more than two insured parties.

What statutes are excluded from the limitations regarding the distribution of material or information?

TCPA or CAN-SPAM Act of 2003. (B) Signup and view all the answers

What determines the most the insurer will pay for damages involving garage operations other than autos?

The Aggregate Limit of Insurance specified for non-automobile operations. (B) Signup and view all the answers

What is the minimum notice period required for the insurer to cancel the policy for nonpayment of premium?

10 days (D) Signup and view all the answers

If the insurer cancels the policy for reasons other than nonpayment, how much notice must be given?

30 days (A) Signup and view all the answers

What type of inspections is the insurer obligated to undertake?

Insurability inspections (D) Signup and view all the answers

What does the notice of cancellation need to specify?

Effective date of cancellation (C) Signup and view all the answers

Who can initiate the cancellation of the policy?

First Named Insured (B) Signup and view all the answers

What is the insurer's responsibility concerning safety and health standards?

Not responsible for health or safety compliance (C) Signup and view all the answers

Where should the cancellation notice be sent?

To the first Named Insured's last known address (A) Signup and view all the answers

What constitutes a 'nuclear facility'?

Any equipment related to isotope separation (D) Signup and view all the answers

Which of the following best defines 'property damage' in the context described?

Any form of radioactive contamination of property (D) Signup and view all the answers

What does the term 'void ab initio' mean in relation to the economic and trade sanctions condition?

Invalid from the beginning (B) Signup and view all the answers

Which of the following situations would render the insurance policy void?

A person claiming benefits being a Specially Designated National (C) Signup and view all the answers

Who or what is NOT covered by the terms of this policy?

A government entity from a sanctioned country (A) Signup and view all the answers

What is a potential situation that may lead to policy enforcement issues?

Claim filed by an entity from a sanctioned country (D) Signup and view all the answers

Which aspect does NOT relate to handling nuclear materials?

Manufacturing non-nuclear electronics (A) Signup and view all the answers

Which of these would NOT be considered a nuclear reactor?

A machine used in the production of fossil fuels (D) Signup and view all the answers

What kind of materials does a nuclear reactor primarily deal with?

Fissionable materials (D) Signup and view all the answers

What is the earliest time 'bodily injury' or 'property damage' is deemed to have occurred?

When the insured is informed by another party of the injury or damage (A) Signup and view all the answers

Which of the following is included as an insured for covered 'autos'?

Your employees using a covered vehicle owned by the company (C) Signup and view all the answers

What happens when the Liability Coverage Limit of Insurance has been exhausted?

The duty to defend or settle ends (B) Signup and view all the answers

What is NOT included in the definitions for covered 'autos'?

A vehicle borrowed for personal use (D) Signup and view all the answers

Which statement regarding reporting claims is true?

Reporting any part of an incident to the insurer is critical (C) Signup and view all the answers

Who is excluded from being an insured while using a covered auto?

An employee operating a covered auto owned by them (C) Signup and view all the answers

What must happen for the insurer to start investigating a claim?

A notification of an accident or claim must be received (C) Signup and view all the answers

What type of damage is specifically mentioned in the context of liability coverage?

Property damage (D) Signup and view all the answers

Which of these is a necessary condition for a claim to be deemed acceptable under the insurance coverage?

The injury or damage must occur during the policy period (D) Signup and view all the answers

What does the insurer NOT have the obligation to do?

Defend against all lawsuits indefinitely (A) Signup and view all the answers

What is the requirement for reporting the total value of covered autos for the main sales location?

Include total value of all covered autos including service vehicles. (D) Signup and view all the answers

What is the reporting frequency for the first report in a quarterly reporting basis?

By the 15th of the fourth month after the policy begins. (B) Signup and view all the answers

If a monthly reporting basis is chosen, when must the reports be submitted?

By the 15th of every month. (B) Signup and view all the answers

What must each report contain in a reporting basis?

Values as of the last business day of the report period. (A) Signup and view all the answers

For locations not mentioned in Item Three, what is reported?

Total value of all covered autos stored or displayed must be reported. (C) Signup and view all the answers

Which company is underwriting the policy?

Columbia Casualty Company (A) Signup and view all the answers

What is required for reporting on a non-reporting basis?

The basis agreed upon must be indicated. (C) Signup and view all the answers

How are premiums calculated for the reports?

Pro rata of the annual premium for the exposures in each report. (A) Signup and view all the answers

What total values are reported for locations other than the main sales location?

The total of all covered autos including service and displayed vehicles. (B) Signup and view all the answers

What does Item Three refer to in the context of the policy?

The primary location where covered autos are stored. (D) Signup and view all the answers

Flashcards

Policy Cancellation by Named Insured

The first named insured on the policy can cancel the policy by sending written notice to the insurance company.

Policy Cancellation by Insurance Company

The insurance company can cancel the policy by sending written notice to the first named insured.

Cancellation for Nonpayment of Premium

The insurance company can cancel the policy for nonpayment of premium with a 10-day notice period.

Cancellation for Reasons Other Than Nonpayment

The insurance company can cancel the policy for reasons other than nonpayment with a 30-day notice period.