Question

James is in the consulting business and frequently flies from city to city to meet clients and help them improve their business practices. Most cities have adequate public transit, but sometimes it's easier to rent a car. Which coverage symbol would specifically pertain to rental cars on James' Business Auto Policy?

Option 1: Symbol 7
Option 2: Symbol 2
Option 3: Symbol 8
Option 4: Symbol 9

Answer 1

The coverage symbol that specifically pertains to rental cars under a Business Auto Policy is Symbol 8. This symbol covers hired autos only, such as rental vehicles leased by the named insured. It contrasts with symbols that cover specifically described autos, owned private passenger autos, and non-owned autos.

Step-by-step explanation:

In relation to the coverage for rental cars under a Business Auto Policy, the coverage symbol that would specifically pertain to rental cars for James' consulting business would be Symbol 8. This symbol extends coverage to hired autos only, which typically includes rental vehicles that are leased, hired, rented, or borrowed by the named insured. In contrast, Symbol 7 applies to specifically described autos, Symbol 2 covers owned private passenger autos only, and Symbol 9 provides coverage for non-owned autos only, such as those used but not rented or owned by the business. If we look at the market definitions proposed by Greyhound Lines, Inc. and Trailways Transportation System during their attempt to merge, it is likely that the bus companies preferred the broader definition of "the market for intercity transportation, including personal cars, car rentals, passenger trains, and commuter air flights." This definition would present the market as more competitive and diverse, potentially reducing concerns about creating a monopoly or significantly reducing competition within the more narrowly defined market for intercity bus service.