Quiz for Unit 7. Not enough information to answer confidently.

Quiz for Unit 7. Not enough information to answer confidently.

by Addison Dubay -
Number of replies: 1
It's hard to know the correct answer without knowing whether the crane described below is being towed, or is driving under its own power. I can only assume that it is under its own power because of the italicized and bold portion below.
 
An insured with coverage under a Commercial General Liability policy buys a new crane and immediately drives the crane on the highway to a job site. While driving on the highway, the insured had an at-fault accident. Which of the following describes how the insurer will respond?
Select one:
A. The insurer will pay the claim only if the insured has a Business Auto policy
B. The insurer will cover the loss since mobile equipment is covered and the crane meets the definition of mobile equipment covered by the policy
C. The insurer will deny the claim because only specifically scheduled equipment is covered
D. The insurer will deny the claim as the crane was operated on the highway under its own power
In reply to Addison Dubay

Re: Quiz for Unit 7. Not enough information to answer confidently.

by Jan Bradburn- -

Addison,

The crane is being driven.  If it were being towed, it would be stated in the question. The insured drives the crane...

Good assumption on your part!

Jan