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 when the insured opts to add the appropriate symbols, specifically symbols 8 and 9.

A) are excluded by the Business Auto policy

This option is incorrect because hired and nonowned autos are not inherently excluded from coverage under the Business Auto policy. Instead, they can be included if the insured takes the necessary steps to add coverage.

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

Option B is also incorrect. While symbol 7 provides coverage for specifically listed vehicles, hired and nonowned autos require symbols 8 and 9 for appropriate coverage under the Business Auto policy.

C) are never covered by the Business Auto policy

This choice is incorrect as it suggests a blanket exclusion. Hired and nonowned autos can be covered by the Business Auto policy if the insured selects the appropriate symbols for coverage.

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

This option is correct. The Business Auto policy allows for coverage of hired and nonowned autos, but it must be activated by the insured through the addition of symbols 8 and 9, making it possible to include these vehicles under the policy.

Conclusion

Option D is definitively the correct answer because it accurately reflects the conditions under which hired and nonowned autos are covered by the Business Auto policy. All other options fail to recognize the possibility of coverage or misattribute the symbols needed for that coverage. Thus, understanding the correct symbols to use is essential for ensuring comprehensive insurance protection for these types of vehicles.