Question 71

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

Hired autos and nonowned autos can indeed be covered under a Business Auto policy if the insured selects the appropriate symbols, specifically symbols 8 and 9.

A) are excluded by the Business Auto policy

This option is incorrect because it suggests that hired and nonowned autos are entirely excluded from coverage under the Business Auto policy. In reality, they can be included if the insured opts for the correct symbols.

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

This choice is misleading as it states that coverage for hired and nonowned autos is limited to symbol 7. However, the correct symbols for such coverage are actually 8 and 9, making this option incorrect.

C) are never covered by the Business Auto policy

This statement is false because it implies that hired and nonowned autos have no possibility of coverage under the Business Auto policy. As mentioned, they can be covered if the insured chooses the right symbols.

D) are covered by the Business Auto policy at the insured's option by adding the appropriate symbols, 8 & 9

This option is accurate, as it correctly indicates that coverage for hired and nonowned autos is available under the Business Auto policy when the insured selects symbols 8 and 9. This provides the necessary flexibility for insured parties to ensure these types of vehicles are covered.

Conclusion

Option D is definitively correct as it explains the conditions under which hired and nonowned autos can be covered by the Business Auto policy. All other options fail because they either misrepresent the coverage status or incorrectly identify the necessary symbols, demonstrating a misunderstanding of the policy's provisions.