6-1CPS, a supplier of commercial printing equipment, is insured under a commercial package policy that includes the business Auto Coverage Form (BACF). No endorsements that would modify the BACF are attached to the policy. The Business Auto Declarations in CPS's policy show the policy as running from July 1, 20X0, to July 1, 20X1. The Schedule of Coverages and Covered Autos indicates covered auto symbol 1 and a $1 million limit of insurance for BACF liability coverage.

On November 1, 20X0, Malamute Publishing (MP) paid $100,000 to purchase a commercial-grade printer from CPS, which agreed to deliver the printer 150 miles to MP's premises ( in US). On November 3, CPS assigned Josh, a CPS employee, to deliver the printer to MP's premise in a CPS truck. While driving to MP's premises, Josh fell asleep at the wheel, causing the truck to collide with another auto, driven by Rhonda. Both vehicles and MP's printer were destroyed, and both Josh and Rhonda were severely injured.

Josh's medical expenses and income loss were covered by workers compensation. However, Rhonda and MP made these liabilities claim against CPS, for which CPS sought coverage under its BACF.

Claim 1: Rhonda made a claim against CPS for $900,000 in damage to her auto. Her claim allege that her damages resulted from Josh's negligent operation of CPS's truck and that CPS was legally liable for the damaged as Josh's employer.

Claim 2: MP made a claim against CPS for $100,000 in damaged for destruction of the printer. The claim alleged that the printer was damaged as a result of Josh's negligent operation of CPS's truck and that CPS was legally liable for the damages as Josh's employer.

After investigating both claims, CPS's insurer concluded that CPS was legally liable for the full amount of damaged alleged in each claim.

a.Disregarding the requirement that the insurance must apply to the bodily injury or property damage , do claim1 and claim 2 meet the other conditions imposed by the insuring agreement in Section II - Covered Autos Liability Coverage of the BACF? Explain why or why not

b.Assuming that none of the conditions in Section IV - Business Auto Conditions would eliminate coverage for Claim I, does any of the exclusions in Section II - Covered Autos Liability Coverage eliminate coverage for claim I? If so, identify any exclusion(s) that would eliminate coverage, and explain why each exclusion would apply.