Farm Labor Contractor Practice Test

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Prepare for the Farm Labor Contractor Test with comprehensive flashcards and multiple choice questions, each featuring helpful hints and explanations. Ensure you're exam ready!

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For day haulers who transport more than 15 passengers, what is the minimum coverage requirement?

$2 million
$3 million
$5 million
$7 million

The correct answer is: $5 million

The minimum coverage requirement for day haulers transporting more than 15 passengers is $5 million. This requirement is established to ensure that in the event of an accident or incident, there are sufficient funds available to cover damages, liability claims, and medical expenses. Transporting a larger number of passengers inherently involves a greater risk, and therefore, higher insurance coverage is necessary to protect both the passengers and the operator against potential financial losses. This amount takes into account various factors, including the potential for higher claims when many individuals are involved. It is a regulatory measure to promote safety and accountability within the transportation industry. Understanding this requirement is important for day haulers to remain compliant with federal and state regulations and to ensure adequate protection for their business and the individuals they transport.