Louisiana P&C Adjuster Practice Exam

What does a Motor Carrier policy primarily cover?

1. Personal auto use

2. Transportation of non-commercial goods

3. Transportation of goods or passengers as part of a commercial enterprise

4. Insurance for private carriers

The correct answer is: Transportation of goods or passengers as part of a commercial enterprise

A Motor Carrier policy is specifically designed to provide coverage for businesses and entities involved in the transport of goods or passengers for commercial purposes. This type of policy addresses the unique risks and liabilities associated with operating commercial vehicles, which are used to haul freight or transport people as part of a business. It includes coverage for physical damage to vehicles, liability for bodily injury and property damage while transporting goods, and other risks that are applicable to commercial operations. The emphasis on commercial activity is crucial, as the needs and risks faced by companies involved in commercial transport differ significantly from those of personal vehicles. While there might be coverage for private carriers under certain circumstances, the primary purpose of a Motor Carrier policy is to protect businesses that engage in such activities as a key part of their operations. This distinguishes it from other options that focus on personal use or non-commercial transport, which do not align with the policy's intended scope.