Question 89

The Auto Dealers Coverage Form does not include legal liability for products recall.

The Auto Dealers Coverage Form provides coverage for various liabilities associated with auto dealerships, but it specifically excludes coverage for products recall.

A) Products recall

This option is correct as the Auto Dealers Coverage Form does not cover legal liability arising from products recall. Such liabilities are typically excluded from standard auto dealer policies due to the potential for extensive costs and risks associated with product defects requiring recall.

B) Premises and operations

This option is incorrect because the coverage form does include legal liability for premises and operations. This aspect protects the dealership from claims arising from injuries or damages occurring on the dealership's premises while conducting business operations.

C) Leased autos

This option is incorrect as the Auto Dealers Coverage Form provides coverage for leased autos. Dealers often lease vehicles, and the policy includes liability protection for these vehicles while they are in use.

D) Products-completed operations

This option is incorrect because the form does cover products-completed operations. It protects the dealership from liabilities that may arise after a product has been sold and is in use, ensuring coverage for completed work related to auto sales and services.

Conclusion

In summary, the Auto Dealers Coverage Form excludes legal liability for products recall, making option A the correct choice. In contrast, options B, C, and D are included under the coverage provided by the form, highlighting the specific limitations associated with products recall liabilities.