12.5 Commercial Auto Endorsements

Arkansas Property & Casualty Insurance State

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1 Standalone Coverage Map

Standalone Coverage Map

2 Introduction: Arkansas Property & Casualty Insurance Exam Overview

Arkansas Property & Casualty Exam Overview

3 National Portion: Insurance Fundamentals

1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority

4 National Portion: Property Insurance Concepts

2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses

5 National Portion: Dwelling Policies (DP)

3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage

6 National Portion: Homeowners Policies - Forms & Section I

4.1 Homeowners Forms HO-2 through HO-8 and Eligibility 4.2 Section I Coverages A-D and Additional Coverages 4.3 Section I Perils Insured Against and Exclusions 4.4 Replacement Cost vs. ACV and Loss Settlement in Homeowners

7 National Portion: Homeowners Policies - Section II & Endorsements

5.1 Section II Coverages E (Liability) and F (Medical Payments) 5.2 Homeowners Conditions and Duties After Loss 5.3 Common Homeowners Endorsements (scheduled property, water backup, ordinance or law)

8 National Portion: Personal Auto Policy - Liability & Injury

6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists

9 National Portion: Personal Auto Policy - Physical Damage & Duties

7.1 Part D: Coverage for Damage to Your Auto 7.2 Exclusions and Part E: Duties After an Accident 7.3 Part F: General Provisions, Endorsements, and No-Fault Concepts

10 National Portion: Liability Insurance Concepts

8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury

11 National Portion: Commercial Property Insurance

9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP

12 National Portion: Commercial General Liability - Coverages

10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments

13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions

11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements

14 National Portion: Commercial Auto Insurance

12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements

15 National Portion: Workers Compensation

13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements

16 National Portion: Other Commercial Lines - BOP, Crime & Marine

14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)

17 National Portion: Other Commercial Lines - Specialty & Professional

15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability

18 National Portion: Other Commercial Lines - Surety, Flood & Specialty

16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines

19 National Portion: Insurance Regulation & Market Conduct

17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations

20 National Portion: Ethics & Unfair Trade Practices

18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection

21 Chapter 1: Arkansas P&C Insurance Regulation & Licensing

1.1 Arkansas Insurance Department 1.2 Arkansas P&C Producer Licensing Requirements 1.3 Arkansas Producer Responsibilities

22 Chapter 2: Arkansas Property Insurance

2.1 Arkansas Homeowners Insurance 2.2 Arkansas Commercial Property Insurance

23 Chapter 3: Arkansas Casualty & Auto Insurance

3.1 Arkansas Auto Insurance Requirements 3.2 Arkansas Liability Insurance 3.3 Arkansas Workers' Compensation Insurance

24 Chapter 4: Arkansas Ethics & Professional Conduct

4.1 Ethical Practices and Consumer Protection

12.5 Commercial Auto Endorsements

Key Takeaways Explain This Topic AI

Drive Other Car (CA 99 10) extends the business auto policy to scheduled individuals using non-owned autos, filling the gap for executives without a personal policy.

Hired Auto Physical Damage (CA 99 54) adds physical damage on rented/leased autos, paying the lesser of ACV, repair cost, or the stated limit minus the deductible.

Employees as Insureds (CA 99 33) pairs with symbol 9 to cover employees using their own autos on business.

Mobile Equipment (CA 20 15) schedules equipment as covered autos so the BAP responds instead of the CGL.

Under-scheduling the stated value on hired-auto physical damage leaves an uninsured gap—a common suitability and E&O exam point.

Last updated: June 2026

Common Business Auto Endorsements

The BAP is routinely tailored with ISO endorsements. Memorize the form numbers and what each does, because exams pair the named exposure with the correct endorsement .

Endorsement Form Purpose
Drive Other Car (DOC) CA 99 10 Extends coverage to executives who have no personal auto
Individual Named Insured CA 99 17 Adds personal-auto-like coverage for an individual named insured
Hired Auto Physical Damage CA 99 54 Adds physical damage on hired/borrowed autos
Auto Medical Payments CA 99 03 Adds no-fault medical payments per person
Pollution Liability – Broadened CA 99 48 Broadens limited pollution coverage
Mobile Equipment CA 20 15 Schedules mobile equipment as covered autos

Drive Other Car (DOC) – CA 99 10

A corporation owns the autos, so an executive who drives only the company car has no personal auto policy. If they borrow a friend's car or rent on vacation, they would have no coverage as an individual. The Drive Other Car endorsement (CA 99 10) fixes this by extending the commercial policy's liability, medical payments, UM/UIM, and (optionally) physical damage to the named individual (and spouse/family) when using a non-owned auto.

Trap: DOC is for individuals named in the schedule of the endorsement—typically owners/executives—NOT for all employees. It does not cover an auto owned by that individual; it fills the personal/non-owned gap only.

Hired and nonowned exposures

Hired Auto Physical Damage (CA 99 54): the BAP covers liability on hired autos via symbol 8, but physical damage on rented/leased autos needs this endorsement. It typically limits the insurer's payment to the lesser of the auto's ACV, the cost to repair, or a stated value/limit (e.g., $50,000) minus a deductible.

Employees as Insureds (CA 99 33): makes employees insureds while using their own autos in your business—pairs with symbol 9 nonowned coverage.

Mobile Equipment (CA 20 15): schedules forklifts, cranes, etc. as covered autos so the BAP (not the CGL) responds.

For a CPP, the commercial auto coverage part is tied together by the Common Policy Conditions (IL 00 17) and the Nuclear Energy Liability Exclusion (IL 00 21) .

Lessor/Additional Insured and waivers

Lessor – Additional Insured and Loss Payee (CA 20 01): when a covered auto is leased or financed, the lessor/lienholder is added as an additional insured for liability arising from the auto's use and as a loss payee for physical damage. Lessors routinely require this in the lease contract.

Waiver of Transfer of Rights of Recovery (CA 04 44): waives the insurer's subrogation against a party named in the schedule—common when a contract (e.g., a shipper) requires the carrier to waive subrogation.

Audio/Visual/Data Electronic Equipment (CA 99 60): broadens or adds coverage for installed electronic equipment that the base physical-damage form limits.

Worked example – Hired Auto Physical Damage limit

A contractor rents a $48,000 truck and buys Hired Auto Physical Damage (CA 99 54) with a stated limit of $40,000 and a $1,000 deductible. The rented truck is wrecked; ACV at loss is $46,000 and repair cost is $52,000.

The insurer pays the lesser of ACV ($46,000), repair cost ($52,000), or the stated limit ($40,000) —so the cap is $40,000—minus the $1,000 deductible = $39,000 . The contractor absorbs the remaining $7,000 of ACV plus the deductible.

Lesson: under-scheduling the stated value on hired-auto physical damage leaves an uninsured gap, a classic suitability/E&O exam point.

Matching the Exposure to the Endorsement

The BAP endorsement questions almost always describe a gap and ask which form fills it. Train yourself to map the fact pattern to the form :

If the exposure is... Add this endorsement
Executive with no personal auto needs coverage in borrowed/rented cars Drive Other Car – CA 99 10

Individual named insured wants personal-auto-style coverage on a commercial policy Individual Named Insured – CA 99 17

Physical damage on rented or borrowed autos Hired Auto Physical Damage – CA 99 54
Employees driving their own cars on company business Employees as Insureds – CA 99 33
No-fault medical payments for occupants Auto Medical Payments – CA 99 03
A lessor/lienholder must be protected Lessor – Additional Insured and Loss Payee – CA 20 01
A contract requires waiving subrogation Waiver of Transfer of Rights – CA 04 44

Quick Answer: DOC fills the individual non-owned gap for executives; Hired Auto Physical Damage fills the physical-damage-on-rentals gap (symbol 8 gives only liability); Employees-as-Insureds plus symbol 9 covers employee-owned autos used in the business.

Why These Gaps Matter for Suitability

Each endorsement exists because the base BAP deliberately leaves a hole. Symbol 8 gives liability on hired autos but no physical damage — so a firm that rents trucks without CA 99 54 must pay out of pocket when a rental is wrecked. An executive insured only through the corporation has no coverage of their own for a vacation rental unless DOC is added. A producer who overlooks these gaps, or who under-schedules the stated value on hired-auto physical damage, creates an errors-and-omissions exposure for the agency.

The exam frames these as suitability questions: identify the uncovered exposure first, then name the endorsement that closes it.