Commercial Auto Insurance for FL Adjuster Claim Professional Exam

Fast Facts

• Business Auto Policy (BAP): Covers auto liability and physical damage. Can be stand-alone or part of a commercial package policy.
• Declarations Pages ("Decs"): Tailor coverages for each vehicle, including six key items:
1. Item One: Named Insured, Form of Business (e.g., corporation, LLC).
2. Item Two: Schedule of Coverages and Covered Autos, using symbols 1–9, 19 to specify covered autos.
3. Item Three: Schedule of Owned Autos (rating and underwriting info).
4. Item Four: Schedule of Hired or Borrowed Auto Coverage and Premiums.
5. Item Five: Schedule for Non-Ownership Liability (for symbols 1 or 9).
6. Item Six: Schedule for Gross Receipts or Mileage Rating (for public autos or leased vehicles).

Types of Auto Insurance Coverages

• Business Auto Policy (BAP): Provides property and liability coverage for most businesses.
• Garage Policy: Combines auto liability and general liability for auto dealers.
• Garagekeepers Coverage: Optional coverage for storage garages, parking lots, or repair shops for vehicles in their custody.
• Auto Dealers Coverage Form (ADCF): Replaced Garage Liability form in 2013, designed for auto dealers and service operations.

Business Auto Policy (BAP) Components

• Stand-alone BAP includes:
  • Business Auto Declarations
  • Business Auto Coverage Form
  • Common Policy Conditions Form
  • Nuclear Energy Liability Exclusion Endorsement
• Endorsements: Modify basic BAP coverages.
• Commercial Package Policy: BAP can be part of a broader policy with other coverages.

Business Auto Declarations

The declarations page customizes coverage for the insured, specifying which vehicles are covered for each type of coverage.

Coverages in Item Two

• Liability
• Personal Injury Protection
• Auto Medical Payments
• Uninsured Motorists (UM)
• Underinsured Motorists (UIM)
• Physical Damage: Comprehensive, Specified Causes of Loss, Collision, Towing and Labor

Auto Coverage Symbols

Ten numerical symbols (1–9, 19) define covered autos:

Symbol	Description	Coverage
1	Any Auto	Broadest coverage, typically for liability.
2	Owned Autos Only	All owned autos, including nonowned trailers for liability.
3	Owned Private Passenger Autos	Private passenger autos, often for medical payments or comprehensive.
4	Owned Autos Other Than Private Passenger	Trucks, vans, etc., often for specified causes of loss.
5	Owned Autos Subject to No-Fault	Mandatory no-fault coverage (select states).
6	Owned Autos Subject to Compulsory UM	Mandatory uninsured motorist coverage (select states).
7	Specifically Described Autos	Listed autos in Item Three, with conditions for new autos.
8	Hired Autos Only	Leased, rented, or borrowed autos (not from employees/partners).
9	Nonowned Autos Only	Employee/partner autos used for business.
19	Mobile Equipment Subject to Motor Vehicle Laws	Land vehicles subject to compulsory laws.

Example Declarations

For Omega Company with:

• Liability for owned, nonowned, and hired autos
• Comprehensive for private passenger autos
• Specified causes of loss for trucks
• Collision for owned autos

Coverage	Symbol
Liability	1 (Any Auto)
Physical Damage Comprehensive	3 (Owned Private Passenger Autos)
Physical Damage Specified Causes of Loss	4 (Owned Autos Other than Private Passenger Autos)
Physical Damage Collision	2 (Owned Autos Only)

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