he motor carrier form's liability section excludes coverage for liability arising out of any contract other than an "insured contract," as defined. Navarro leases a truck from Barker, and the lease agreement obligates Navarro to pay for any damage to this vehicle. The vehicle is damaged in an accident while it is in Navarro's custody. Does Navarro's motor carrier policy cover this damage claim?

$($Search Chapter $4)$

a$.$ No; the lease agreement is an insured contract.

b$.$ No; the lease agreement, an insured contract, does not apply to any liability in connection with damage to the vehicles itself.

c$.$ Yes, provided that Navarro would not be responsible for the damage if the lease agreement did not exist.

d$.$ Yes; the lease agreement is an insured contract and covers any liability in connection with damage to the vehicle itself.