P&C Exam Q&A: 5 Business Auto Questions That Trip People Up

The Business Auto Policy is a symbol game with a few edge rules. Test yourself on these five before the exam tests you.

Question 1

An employee drives their own car to the bank to deposit checks for the business. The business carries symbol 8 and symbol 9. Which covers this use?

Answer: Symbol 9 (non-owned autos). Symbol 8 is hired autos - vehicles the business rents. An employee's personal car used for business is a non-owned auto under symbol 9.

Question 2

A firm rents a truck for the week and carries symbol 9 only. You can conclude that the rental is covered.

Answer: False. Symbol 9 covers non-owned autos used in the business, but the standard BAP excludes from symbol 9 any auto hired or borrowed by the firm. The rental needs symbol 8.

Question 3

Which physical damage coverage part pays for a broken windshield caused by a road hazard during a hailstorm-free, theft-free vandalism-free event? Choose the most complete answer: (A) Collision (B) Comprehensive (C) Specified causes of loss (D) Towing

Answer: B. Comprehensive covers glass breakage and almost everything other than collision or overturn - including striking an animal, falling objects, fire, theft, and glass. On the BAP you choose comprehensive, specified causes of loss, or collision separately; comprehensive is the broadest glass answer.

Question 4

A business buys a new delivery van mid-policy-period. It carries symbols 7 and 9. What must happen for liability to apply?

Answer: The van must be added to the policy. Symbol 7 covers only autos specifically described in the declarations. Newly acquired autos get at best 14 days of coverage if the insured reports them - the trigger is the newly acquired auto reporting rule, and symbol 7 is on the strict end. Compare: symbols 1 or 2 pick up newly acquired autos automatically.

Question 5

A garage business wants coverage for customers' autos left for service, its own tow trucks, and the owner's personal car in one policy.

Answer: The Garage Coverage Form is built for this - garage liability, garagekeepers coverage, and auto physical damage in one. The BAP cannot cover cars held for resale or service; the exam looks for the garage form whenever customers' autos appear.

These match standard exam content; actual policies vary.

Drill until the symbols are automatic

Symbol questions take about fifteen seconds each when you know the pattern. Get the full drill set at pandcpacademy.com/pass-your-exam-now