Commercial Automobile Insurance Coverages

This course is designed to give you a solid understanding of commercial automobile coverages as offered in commercial automobile package policies and how such insurance can be used to cover an organization’s transportation-related loss exposures. Before beginning the course, you should familiarize yourself with the educational objectives of the course, which are summarized below and read Commercial Auto Coverage, 8^th Edition by DF Institute, Inc.

Educational Objectives

1. Explain the origins of commercial automobile insurance and its current role in our society.

2. Describe the key legal concepts of commercial automobile insurance.

3. Explain the common features of commercial automobile insurance.

4. Given a case, tailor commercial automobile insurance coverages to fit the exposures presented.

5. Explain the importance of safety in commercial automobile risk management and how producers can influence loss control.

6. Given a commercial automobile case study, prepare a package submission for an underwriter.

In support of the assignment objective listed above, those who complete this course should be able to do the following:

a. Identify, explain, and illustrate the use of any information needed by an underwriter to properly evaluate and price a commercial automobile package policy.

b. Compare the various methods of providing commercial automobile insurance.

c. Describe the various provisions of commercial automobile insurance policies.

d. Name and describe the endorsements and optional coverages available to modify basic policies.

e. Describe how commercial automobile insurance premiums are developed for guaranteed cost and competitively priced policies.

f. Name, explain, and illustrate use of optional risk management strategies to commercial automobile insurance premiums.

I Origins of Commercial Auto coverage	20 minutes
II Basic Commercial Auto coverage concepts	30 minutes
A. Key Legal Concepts 1.Responsibility of owners and operators 2.Remedies 3.Dual capacity 4.Covered injuries 5.Definition of “Accident”
B. Common features of Commercial Auto laws	60 minutes
1.Compulsory versus elective laws 2.Who is covered 3.Coverage for “hired cars” 4.Effect of different forms of ownership 5.Extraterritorial coverage 6.Claims involving third parties
C. Methods of Commercial Auto insurance coverage
1.Commercial insurance—monoline and multiline 2.Residual Markets 3.Self-Insurance 4.Self-Insurance Pools
III Required and common parts of Commercial Package policies	75 minutes
A. Common Policy Conditions B. Common Policy Declarations C. Line of Insurance Declarations pages D. Lines of Insurance Coverage Forms E. Lines of Insurance General Conditions Forms F. Endorsements
IV Calculating Commercial Auto premiums	15 minutes
A. Classification B. Premium Base C. Premium Adjustment Factors D. Pricing and Other Competitive Strategies
V Safety and Commercial Auto insurance	20 minutes
A. The role of the producer in loss control B. Occupational Safety and Health Act of 1970 (OSHA)
VI What the underwriter needs to know	10 minutes
A. Applicant information B. Locations C. Policy information D. Rating information E. Individuals and properties included/excluded F. Prior carrier information/loss history G. Nature of business/description of operations H. General information I. Critical thinking
VII Summary	10 minutes
Total 240 minutes

FL Course Offering ID is ___________ for the class on _/_/07

FL Course id# is _________

CEU – Agent 4 hrs, intermediate