Arkansas Insurance Adjuster Practice Exam

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Question: 1 / 400

Kyle operates a collision repair garage. Which type of coverage protects him from liability if a car is further damaged in his possession?

Bailment

Subrogation

Non-Owned Vehicle Coverage

Bailee Coverage

Bailee Coverage protects from liability for damages to a vehicle while it is in Kyle's possession due to operations related to his business, such as collision repair. This coverage is specifically designed to cover vehicles that do not belong to the insured, which makes options A, B, and C incorrect. Bailment refers to the legal relationship between a bailor and a bailee, Subrogation is the right of an insurance company to pursue a third party that caused an insurance loss to the insured, and Non-Owned Vehicle Coverage provides liability coverage for vehicles that are not owned by the insured but are used for business purposes. Therefore, Bailee Coverage is the most suitable and specific coverage for Kyle's collision repair business.

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