CH 13 Businessowner Coverage Form
Which statement about the BOP's Hired Auto and Non-owned Auto endorsement is correct?
Business auto coverage for a vehicle the insured rents is added to the coverage
All of the following are true of Section II of the Businessowners Coverage Form, except:
Business liability coverage applies to damage to an insured's property or work
Section III of the Businessowners Coverage Form includes:
Common Policy Conditions
Which of the following is included in Section III of the Businessowners Coverage Form?
Common Policy Conditions
An unendorsed BOP with no optional coverages covers which of the following properties?
Completed additions
Section I of the Businessowners Policy does not cover which of the following?
Computers permanently installed in a motor vehicle subject to registration
In which section of the BOP would coverage for outdoor property be found?
Coverage extensions
Choose the correct statement regarding Extra Expense Coverage under a BOP.
Coverage is for 12 months after the direct loss
Which of the following is true regarding Business Income Coverage under a BOP?
Coverage is provided for up to 12 months after the direct loss, with no limit on the amount of monthly indemnification, and no limit of insurance
Which of the following is not an optional coverage under the BOP?
Electronic data
All of the following are true of a Businessowners Coverage Form, except:
Employee dishonesty is automatically included in each policy
Which coverage is not an Additional Coverage under the Businessowners Coverage Form?
Equipment breakdown
Which of the following is an eligible risk under the BOP?
Fast food restaurant
Which statement is false regarding the Businessowners Policy?
First aid expenses are included in Supplementary Payments
Which of the following would be eligible for a Businessowners policy?
Funeral Home
A loss caused by which of the following would be covered under a BOP?
Increased cost of construction
All of the following are excluded under the BOP, except:
Increased cost of construction
Which statement about the BOP Utilities Services Time Element Endorsement is true?
It pays for loss of business income or extra expense at the described premises caused by the interruption of service at the described premises
The BOP's optional coverage for employee dishonesty covers which of the following?
Loss to business or personal property resulting from dishonest acts of employees
All of the following are automatically covered under the Businessowners Policy, except:
Mechanical breakdown
Which statement is false regarding Section II of the Businessowners Coverage Form?
Medical expenses include bodily injury to an insured or a person hired to do work
Which of the following is covered under Section II of the Businessowners Coverage Form?
Medical payments to volunteer workers
Which of the following is not an exclusion under Section II of the Businessowners Coverage Form?
Medical payments to volunteer workers
All of the following are covered under a BOP, except:
Money and securities
The BOP's optional coverage for money and securities will cover which of the following?
Money and securities against theft, disappearance or destruction
Which statement is false regarding the Businessowners Policy?
Most insurance losses are settled on an actual cash value basis
Which type of coverage does the BOP provide for preservation of property?
Open perils coverage for 30 days
In which section of the BOP would coverage for equipment breakdown be found?
Optional coverages
The Damage to Premises Rented to You coverage under the Businessowners Policy is subject to which of the following limits of liability?
Per fire limit
Which of the following is not an additional coverage under the BOP?
Personal effects
All of the following are Optional Coverages under the Businessowners Policy, except:
Personal property of others that is in the insured's care, custody and control
Which of the following is not an Optional Coverage under the Businessowners Policy?
Personal property of others that is in the insured's care, custody and control
Under a Businessowners Policy medical expenses coverage:
Provides coverage without regard to negligence
Damage to a building insured under the Businessowners Policy is valued on which basis?
Replacement Cost
The Businessowners Policy will cover damage to the building on which settlement basis?
Replacement Cost
The Common Policy Conditions are found in which section of the BOP?
Section III
Which of the following is automatically covered under the Businessowners Policy?
Signs attached to the building
Section II of the BOP policy provides the same liability coverage as:
The Commercial General Liability policy
Which statement regarding the Businessowners Policy is not correct?
The Damage to Premises Rented to You limit is written on a per person basis
All of the following are true about the Limits of Liability under Section II of the BOP, except:
The Products and Completed Operations aggregate limit is equal to the Liability and Medical Expense limit
Choose the correct statement regarding the BOP Protective Safeguards Endorsement.
The insured is required to maintain the safeguards listed in the endorsements such as automatic sprinkler systems, automatic fire alarms and/or security services
Which of the following would be covered under a BOP?
The insured is sued for injury to a competitor caused by an advertisement
A Businessowners policy would cover which of the following?
The insured is sued for injury to a competitor caused by one of their advertisements
Which statement is true regarding inspections and surveys under the BOP?
The insurer has the right, but is not obligated to make inspections and surveys at any time
Under the Businessowners Policy, if there is other insurance covering the same loss how will the policy respond?
The insurer will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance
All of the following are true regarding medical expenses coverage under the BOP, except:
The policy excludes funeral expense
Under the BOP, the Money and Securities Optional Coverage would cover which of the following?
Theft of stock certificates
Under the BOP, what is the insurer's obligation following a loss when other insurance is written with exactly the same basis?
To pay only after the other insurance coverage is exhausted
The spouse of which named insured is not eligible as an insured under the BOP?
Trustee
The spouse of which of these persons is not an insured covered under the BOP?
Trustee
The unendorsed Businessowners Policy will pay no more than what amount for the theft of jewelry?
2,500
Under the BOP, if coverage for business property equals 100% of
25%
Under the BOP, if coverage for business property equals 100% of the average monthly values for the preceding 12 months, an automatic increase of what amount is provided to offset seasonal variations in stock values?
25%
Under the BOP, the insurer may examine and audit books and records at any time during the policy period and up to how many years following policy termination?
3
Motels may not be written insured by a Businessowners Policy if they exceed:
3 stories
The BOP covers property while it is being temporarily stored in another location for how many days?
30
The Businessowners Protective Safeguards endorsement requires the insured to notify the insurer if an automatic sprinkler system is off for how long?
48 hours
The insurer may cancel a BOP when an insured building has been vacant or unoccupied for how many days?
60
Payroll is covered for how long under Businessowners Business Income coverage?
60 days
The insurer may cancel a Businessowners Policy if the insured building has been vacant or unoccupied for how long?
60 days
Which coverage is not included in a standard Businessowners Policy?
72 hours Direct Damage from Utility Services
Which of the following risks is not eligible for coverage under the Businessowners policy?
A 10-story office building
Which of the following properties would not be eligible for a Businessowners Policy?
A dry cleaning plant that has a total of 45,000 square feet
How is debris removal categorized in the BOP?
Additional Coverages
All of the following are included in Section I of the Businessowners Coverage Form, except:
An automatic 90% coinsurance clause
Who of the following is not considered an insured under a BOP?
Anyone driving the named insured's mobile equipment on public roads, without the named insured's permission
Under the Businessowners Coverage Form, how much time is allowed for medical expenses to be incurred and/or reported?
1 year
Within what time period from the date of the injury must a medical expense be incurred in order for medical payments coverage to apply under BOP liability?
1 year
Under the Earthquake Endorsement to the BOP, if an earthquake begins before the policy expiration, coverage continues for up to how many hours?
168
For how many hours after the first tremor would earth movement damage be covered under the Businessowners Earthquake endorsement?
168 hours
Under a BOP, the insurer may examine and audit the insured's books and records at any time during the policy period and up to what duration after policy expiration?
3 years
Within how many days after an insured acquires new business property must the property be added to the BOP policy?
30
Which of the following is covered as business personal property under the BOP?
Built-in bookcases installed by a tenant
The BOP policy provides the same liability coverage as which of the following policies?
Commercial General Liability
Which of the following is true regarding Extra Expense Coverage under a BOP?
Coverage is for 12 months after the direct loss
When a proper entry is made on the Declarations Page of a BOP, the optional coverage for outdoor signs would be:
Covered on an open perils basis
Which type of loss does not reduce an aggregate limit within the Businessowners Coverage Form - Section II?
Damage to Premises Rented to You
Which of the following coverages is not included in either of the Utility Services endorsements?
Direct loss to electronic data
Which statement is true about the BOP Hired Auto and Non-Owned Auto Liability Endorsement?
It adds business auto coverage for a vehicle the insured rents
Which of the following is true regarding business personal property under a BOP?
It is covered when located in or on the building at the described premises, or in the open within 100 feet of the premises
Which of the following is true regarding the BOP's Time Element Utilities Services Endorsement?
It pays for loss of business income or extra expense at the described premises caused by the interruption of service at the described premises
The Businessowners Liability Coverage Form includes coverage for bodily injury, property damage, personal injury and advertising injury to which coverage applies, plus:
Liability assumed under an insured contract
Under a Businessowners policy, if an insured acquires a building on April 1st, it is automatically covered until which date?
May 1
The outdoor property coverage extension will not pay for which of the following?
Up to $5,000 for fences
Under the BOP, which of the following types of property is not covered?
Vehicles subject to motor vehicle registration
