Difficulty: Hard

Average Score: 38%

Hired autos and nonowned autos

Rationale

Hired autos and nonowned autos are covered by the Business Auto policy at the insured's option by adding the appropriate symbols, 8 & 9.

The Business Auto policy provides coverage for hired and nonowned autos if the insured chooses to add the appropriate symbols (8 and 9) to their policy. This flexibility allows businesses to protect vehicles not owned by them but used for business purposes.

A (are excluded by the Business Auto policy) YOUR ANSWER

This statement is incorrect because hired and nonowned autos are not automatically excluded; they can be included if the appropriate symbols are added to the policy. Therefore, this choice misrepresents the policy's coverage options.

B (can be covered by the Business Auto policy ONLY by symbol 7) YOUR ANSWER

This option is misleading as symbol 7 specifically refers to "specifically described autos," which does not encompass all hired and nonowned vehicles. Hired and nonowned autos require symbols 8 and 9 for coverage, making this response inaccurate.

C (are never covered by the Business Auto policy) YOUR ANSWER

This choice is incorrect because it outright denies any possibility of coverage for hired and nonowned vehicles. With the proper endorsement (symbols 8 and 9), these vehicles can be covered under the Business Auto policy, contradicting this statement.

Conclusion

In summary, hired and nonowned autos can indeed be covered under the Business Auto policy when the insured opts to include the necessary symbols, 8 and 9. This provision allows businesses to ensure comprehensive coverage for vehicles used in the course of their operations, enhancing their overall risk management strategy.

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