13. Alston Trucking has a contract to transport a trailer load of beer from Milwaukee to...

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13. Alston Trucking has a contract to transport a trailer load of beer from Milwaukee to Houston. However, Alston is authorized only to transport goods between Milwaukee and St. Louis. Sykes Transport Company has the authority to transport goods between St. Louis and Houston. Therefore, Alston agrees to turn its trailer over to Sykes Transport Company in St. Louis, and Sykes will deliver it to Houston. In the trailer interchange agreement, Sykes assumes liability for any physical damage to the trailer. Unfortunately, the trailer was destroyed in a collision just outside Memphis. Sykes does not believe its driver's actions caused the collision. The trailer interchange coverage in Sykes's motor carrier policy includes only comprehensive coverage. How should the trailer interchange coverage of Sykes's motor carrier policy respond? Oa. The insurer should deny the claim because collision is not a covered peril. Ob. The insurer should defend Sykes and pay the claim if Sykes is found liable. Oc. The insurer should deny the claim only if the collision was caused by Sykes's negligence. od. The insurer should pay the claim because Sykes assumed legal liability by contract. 13. Alston Trucking has a contract to transport a trailer load of beer from Milwaukee to Houston. However, Alston is authorized only to transport goods between Milwaukee and St. Louis. Sykes Transport Company has the authority to transport goods between St. Louis and Houston. Therefore, Alston agrees to turn its trailer over to Sykes Transport Company in St. Louis, and Sykes will deliver it to Houston. In the trailer interchange agreement, Sykes assumes liability for any physical damage to the trailer. Unfortunately, the trailer was destroyed in a collision just outside Memphis. Sykes does not believe its driver's actions caused the collision. The trailer interchange coverage in Sykes's motor carrier policy includes only comprehensive coverage. How should the trailer interchange coverage of Sykes's motor carrier policy respond? Oa. The insurer should deny the claim because collision is not a covered peril. Ob. The insurer should defend Sykes and pay the claim if Sykes is found liable. Oc. The insurer should deny the claim only if the collision was caused by Sykes's negligence. od. The insurer should pay the claim because Sykes assumed legal liability by contract.