Ch 6-14
A business is insured by a $400,000 BOP. If three trees valued at $600, $700, and $400 are destroyed by fire, the policy will pay how much?
$1,700
Three trees valued at $1,900, $600, and $200 were destroyed by fire. The businessowner policy will cover this loss to a total of:
$1,800
An appliance repair business is robbed of $10,000 in equipment and $500 cash. The $75,000 Special Businessowner's policy will cover the loss for:
$10,000
If the insured's dog bites a jogger, the HO will pay a maximum of defense costs plus:
$100,000
While playing with fireworks, Smith's 16-year-old child negligently destroyed the neighbor's $250,000 home. Smith's homeowner's policy will cover the liability up to:
$100,000
If a fire causes $100,000 damage and the debris removal expense is $14,000, a Building and Personal Property policy will pay how much (assuming it has adequate limits of coverage)?
$114,000
If all of a business's trees are destroyed in a fire, the maximum the BOP will pay is a total of:
$2,500
Business Income Coverage Form has a $100,000 limit of liability with a 25% monthly limit of indemnity. If the insured loses $47,000 in a particular month, the most the policy will pay for that month's losses is:
$25,000
A Business Income policy has a $10,000 limit of liability with a 25% monthly limit of liability. The Business is destroyed by a covered peril. The actual loss of income was $2,000 for the first month and $3,000 for the second month. The Business Income policy will pay a total of how much for the two months?
$4,500
A store's business owner's policy covers the store's portable shelving. The shelving, which was destroyed by fire, had the following valuations: replacement cost - $7,000; actual cash value - $3,000; original purchase price - $5,000; fair market value - $280. The policy will pay how much on this claim?
$7,000
A building valued at $100,000 has a policy with an 80% coinsurance clause. The minimum coverage needed to fully cover a $15,000 fire loss is:
$80,000
The Building and Personal Property policy covers outdoor furniture located within a maximum of:
100 feet
After a Building and Personal Property policy proof of loss is filed, the claim must be paid within:
30 days
If a business insured by a Building and Personal Property policy (BPP) acquires a new business, the new business is insured for a grace period of:
30 days
The definition of vacancy under a Homeowner policy is:
30 days
When there is no transfer of title, flood insurance is effective how many days after application?
30 days
The Business Income coinsurance requirement to maintain the Coverage Extensions is:
50%
The HO-2 provides vandalism coverage for a maximum of how many days after the beginning of the vacancy?
60 days
Boiler policies cover losses due to:
Accidental breakdown
Section I of the HO covers each of these EXCEPT?
Bodily Injury Liability
Which BOP is not available?
Broad form coverage
The optional coverage under a BOP is
Burglary and Robbery
Which of the following is covered by a Commercial Package Policy (CPP)?
Crime
The HO's Personal Liability section covers:
Damage to the property of other persons.
Which form of Business Interruption coverage allows a business to continue partial or full operation after loss caused by a covered peril?
Extra Expense coverage
Which federal agency runs the flood insurance program?
FEMA
The Building and Personal Property policy deductible does not apply to:
Fire Department Service Charge
Each of these is true regarding flood insurance EXCEPT:
Flood policies contain a coinsurance requirement.
f the insured is injured in her home, she will be compensated under:
Her health insurance policy, but not under the HO at all
Under the pair or set rule:
In no event will the loss of one item in the pair or set be considered to be the loss of all items in the pair or set.
Which floater covers a heating/air conditioning dealer putting a new furnace system in an office building?
Installation Floater
Which is true regarding the HO-8?
It was created because replacement cost is too costly for some homes.
In comparing an HO-2 and HO-3, the HO-3 has:
None of the above.
Each of the following could be included in a CPP EXCEPT:
Ocean Marine
Under the Building and Personal Property policy, the mortgagee is entitled to:
Payment as per the mortgagee's interest at the time of loss
The deductible under an earthquake policy is:
Percentage
person who owns jewelry worth over $50,000 should get a:
Personal Articles Floater
A mobile home policy:
Provides Replacement Cost coverage.
The additional coverages under the Building and Personal Property policy include each of the following EXCEPT
Theft of Money
A building with no occupants or contents is:
Vacant
Which would NOT purchase a bailee's floater?
a credit union
The Building and Personal Property policy (BPP) covers:
a rowboat stored in the building
Which can get a Businessowner policy?
a small restaurant
The Building and Personal Property policy covers each of the following EXCEPT:
a tenant's furnishings
A refinery's pipe suddenly bursts and pollutes the atmosphere. This is an:
accident
A single unexpected event is a (n)
accident
Inland Marine policy losses are usually calculated with which method of valuation:
actual cash value
The Extended Business Income is intended to provide 30 days coverage that begins:
after the reopening of the business following the loss restoration.
A car is destroyed by a hurricane. This is:
an accident
Most Personal Articles Floaters are written on:
an open perils (all-risk) basis
The HO-5 policy provides:
both Coverage E (Personal Liability) and Coverage F (Medical Payments)
Extra Expense coverage may be provided with:
business income
A Fine Art Floater:
covers private art works
Which of the following will result in an "automatic" assignment of a CPP?
death of the Insured
Under a CPP, the duration of the policy's coverage is found in the:
declarations
If the insured's dog bites a jogger, the HO's Bodily Injury Liability will pay for:
defense costs if the jogger sues.
Marine Transportation Insurance covers:
domestic shipments of goods
A DP-1 (Dwelling Policy -1) covers each of the following EXCEPT:
earth movement
Which section of a Special (Extended Coverage) form BPP contains information regarding whether a peril is covered?
exclusions
The National Flood Insurance Program is operated by the:
federal government
Inland Marine policies are called?
floater
Which coverage applies under an Ocean Marine policy when cargo is jettisoned to save the ship?
general average
The HO's Supplementary (Additional) Payments pays:
in addition to the limits of liability.
Loading docks and cattle shipped to market are insured by what area of insurance?
inland marine
Ocean marine floaters cover each of these EXCEPT:
insects and vermin
Which is least likely to be eligible for a BOP?
large restaurants
Inland Marine will NOT cover:
leased buildings
Ocean Marine covers:
loading bridges
A mobile home policy:
may provide Replacement Cost coverage for the structure if it is insured to 80% of replacement cost
Flood insurance covers:
mudslides
Which is a coverage extension?
newly acquired property
A carpenter working on a house has a hammer slip from his hands, but no damage occurs. This is not an accident because:
no damage ocurred
Under a Homeowner policy, abandonment is:
not permitted
Joe has a building covered by a Building and Personal Property policy. What must he do to cover a new lawnmower used to service the premises?
nothing
Pollution over a long period of time is:
occurrence
For the dwelling, Mobile Home policies cover loss settlement:
on a Replacement Cost basis.
The earthquake deductible is applied:
once each 7 days (168 hours)
Earth movement insurance is available:
only as an endorsement
Extra Expense covers:
only the additional expenses necessary to continue the business after a loss.
The HO's Medical Payments pays:
only up to the limit of liability.
A homeowner policy requires notice of a loss to be given to each of the following EXCEPT:
other insureds.
The Building and Personal Property policy may be used to cover each of the following EXCEPT?
property damage liability
The Business Income form covers each of these EXCEPT:
property replacement
The purpose of the National Flood Insurance Program is to
provide flood insurance at subsidized rates.
A Personal Articles Floater:
provides all-risk coverage.
Inland Marine covers each of the following EXCEPT
real estate and buildings
Under Section II of the HO policy, Med Pay will cover a claim:
regardless of liability.
For a business, Extra Expense would cover:
rental of substitute space
Which of the following is eligible for flood insurance?
retail store and its inventory
Commercial floaters cover:
salespersons' samples
Ocean Marine Insurance covers:
ships' cargo
An accident is:
sudden and unintended
The HO's Personal Property coverage applies to:
the insured's clothing.
The most a HO policy will pay for a liability slip and fall claim under Section II of the policy is:
the policy's limit of liability.
Building materials used for repairs are not covered for:
theft
A Mobile Home policy covers a detached garage:
to 10% of A (with at least $2,000 coverage)
The owner of a new office building is unable to move in for 80 days. Which provision will restrict coverage?
vacancy
After 60 days, a property with no people and no significant amount of personal property is considered to be:
vacant
An Earth Movement policy covering a shopping mall would most likely cover a claim involving:
volcanic eruption
The owner of a business carelessly left the rear door unlocked over the weekend, resulting in merchandise being stolen. Under a Building and Personal Property policy - Special, this loss:
will be covered as a theft loss
