What does the Employee as Lessor endorsement CA 99 47 do?

What does the Employee as Lessor endorsement CA 99 47 do?

• A. Treats an auto hired, borrowed, or leased by the named insured as an owned auto
• B. Cancels coverage for leased autos
• C. Includes the employee's personal vehicle as a covered auto
• D. Eliminates coverage for hired autos

Answer: (A)

The main idea here is that the Employee as Lessor endorsement changes how vehicles that the named insured uses from others are treated for coverage. CA 99 47 is designed for situations where an employee lends a vehicle to the business. With this endorsement, the auto that is hired, borrowed, or leased by the named insured is treated as if the insured owned it. That means the policy’s liability and physical damage coverages apply to that vehicle in the same way they apply to a company-owned auto, helping to avoid coverage gaps that could occur if the vehicle were simply considered a non-owned or hired vehicle. So, the endorsement essentially makes borrowed or leased vehicles act like owned autos for the purposes of the policy. It doesn’t cancel coverage for leased vehicles, it doesn’t specifically list the employee’s personal vehicle as a covered auto, and it doesn’t eliminate coverage for hired autos.

The main idea here is that the Employee as Lessor endorsement changes how vehicles that the named insured uses from others are treated for coverage. CA 99 47 is designed for situations where an employee lends a vehicle to the business. With this endorsement, the auto that is hired, borrowed, or leased by the named insured is treated as if the insured owned it. That means the policy’s liability and physical damage coverages apply to that vehicle in the same way they apply to a company-owned auto, helping to avoid coverage gaps that could occur if the vehicle were simply considered a non-owned or hired vehicle.

So, the endorsement essentially makes borrowed or leased vehicles act like owned autos for the purposes of the policy. It doesn’t cancel coverage for leased vehicles, it doesn’t specifically list the employee’s personal vehicle as a covered auto, and it doesn’t eliminate coverage for hired autos.