Businessowners Policy

Which of the following are excluded under the businessowners liability coverage? A) All of these B) Damages the insured causes intentionally C) Pollution losses caused by the insured D) Liquor liability for those in the business of serving liquor

A) All of these

Which of the following would be covered under the building coverage of the Businessowners policy? A) Restroom fixtures B) Furnishings in the insured's private office C) An enclosure around the front entry to a store that the insured tenant had built when he began leasing the building D) Photocopy machines

A) Restroom fixtures

Of the following, which statement is NOT correct regarding medical expense coverage under the businessowners policy? A) The insured must be proven to be legally liable B) Expenses must be incurred and reported within one year after the accident C) Coverage is provided without regard to fault D) Coverage is intended for applicable expenses incurred by the general public

A) The insured must be proven to be legally liable

Under the protective safeguards endorsement, if an automatic sprinkler system is shut off due to breakage, the insurer does not have to be notified if the system can be restored within A) 12 hours B) 48 hours C) 24 hours D) 36 hours

B) 48 hours

Which of the following lines of insurance will cover the loss of income a business experiences due to a fire? A) Commercial fire insurance B) Business income insurance C) Restoration and additional expenses D) Business relocation insurance

B) Business income insurance

Which coverage on a businessowners policy pays an additional amount for the increased cost of construction due to regulatory compliance? A) Civil authority B) Increased cost of construction C) Business income and extra expense D) Preservation of property

B) Increased cost of construction

Which one of the following is covered under Businessowners Liability coverage? A) Pollution losses caused by the insured B) Liability assumed under an insured contract C) Liquor liability for those in the business of serving liquor D) Damages the insured causes intentionally

B) Liability assumed under an insured contract

All of the following are correct regarding the limits of liability in a businessowners policy, EXCEPT: A) The policy pays the maximum amount payable for medical expenses for bodily injury to one person B) The policy has one aggregate limit for all injury or damages that are covered. C) The policy includes two aggregate limits and both are two times the limits shown in the declarations for liability and medical expense coverage D) The policy limits stated in the declarations apply no matter how many insureds, claims, suits, people, or organizations are involved

B) The policy has one aggregate limit for all injury or damages that are covered.

Mechanical Breakdown coverage is A) automatically provided in a BOP. B) an optional BOP coverage that must be designated in the Declarations for coverage to apply. C) available only through a separate policy. D) not available in a BOP.

B) an optional BOP coverage that must be designated in the Declarations for coverage to apply.

Business personal property under the BOP includes all of the following EXCEPT A) leased personal property that the insured has a contractual responsibility to insure B) permanently installed equipment C) exterior building glass D) tenants' improvements

B) permanently installed equipment

All of the following are considered supplementary payments that do not reduce the policy limit, EXCEPT: A) Cost of investigating and defending the claim or suit B) Costs the insured is required to pay because of a lawsuit C) $500 per day for lost earnings because of time off work D) Up to $250 for the cost of bail bonds related to violations that arise from vehicles to which bodily injury liability coverage applies

C) $500 per day for lost earnings because of time off work

Which of the following would be covered under the business personal property coverage of the Businessowners policy? A) Fire extinguishers located at various places on the inside walls of the building B) Cans of paint that are stacked near a newly constructed outer wall prior to painting the wall C) Desks, filing cabinets and other office equipment the insured uses in her business D) Carpets and floor tiles

C) Desks, filing cabinets and other office equipment the insured uses in her business

Which one of the following coverages is NOT included in the Businessowners policy? A) Medical Expense B) Bodily Injury liability C) Professional Liability D) Property Damage Liability

C) Professional Liability

The largest office building risk that may be eligible for a Businessowners policy is A) three stories and 75,000 square feet. B) six stories and 75,000 square feet. C) six stories and 100,000 square feet. D) three stories and 50,000 square feet.

C) six stories and 100,000 square feet.

In addition to maximum floor space, the Businessowners eligibility rules limit eligible risks to a maximum of A) $5 million in annual sales. B) $1.5 million in annual sales. C) $750,000 in annual sales. D) $3 million in annual sales.

D) $3 million in annual sales.

The standard deductible for the BOP property coverage is A) $250. B) $100. C) $1,000. D) $500.

D) $500.

Under the additional coverages of the Businessowners property coverage, property removed to protect it from loss will be covered at another location for up to A) 10 days. B) 20 days. C) 5 days. D) 30 days.

D) 30 days.

Eligibility for a businessowners policy is determined according to A) the job category of the employees B) the total payroll of the business C) the amount of coverage selected by the insured D) the type and size of the risk

D) the type and size of the risk