State Farm Insurance License Practice Exam

In commercial auto coverage, what does the Motor Carrier Coverage Form address?

1. Coverage for non-commercial vehicle use

2. Coverage for anyone transporting property by auto in a business

3. Specific coverage for only long-haul truck drivers

4. Insurance related to personal auto accidents

The correct answer is: Coverage for anyone transporting property by auto in a business

The Motor Carrier Coverage Form specifically addresses insurance needs for businesses that are in the business of transporting goods or property using motor vehicles. This form provides coverage for commercial vehicles used for this purpose, ensuring that both the vehicle itself and any cargo being transported are protected during operation. This coverage is essential for businesses that rely on vehicles to move products or materials as part of their operations, offering protection against risks such as accidents, theft, or damage that could affect their transport activities. By focusing on the transport of property by auto in a business context, this form ensures that companies meet the legal and financial requirements associated with their operations, especially in highly regulated industries. The other options do not align with the specific function of the Motor Carrier Coverage Form, as they deal with non-commercial uses, personal auto accidents, or coverage limitations to certain types of drivers, none of which reflect its intended purpose.