Commercial

The builders risk coverage form incudes an additional coverage that provides a limited amount of coverage for lawns, trees, shrubs, or plants when located outside of buildings. This limit is $__,000 but $_____ for any one.

$1,000 & $250

A coverage extension included on the building and personal property coverage form provides coverage for business personal property temporarily stored in a detached trailer within 100 ft. of the insured building for $___,000 unless higher limits are purchased.

$10,000

The builders risk form provides an extension of coverage for building materials within 100 ft. of the building being constructed and belonging to others, but under the care, custody, and control of the insured for up to $__,000

$5,000

All of the following are listed in common declarations of a Commercial Package Policy (CPP), EXCEPT: 1.The policy period 2. the premium for each coverage 3. A list of perils insured against 4. name and mailing address of the insured

A list of perils insured against.

Which of the following Commercial Property cause of loss forms include the additional coverage for " Fungus, wet rot, dry rot, and bacterial"? 1. Basic 2. Broad 3. Special

ALL

Under the Commercial Building and Personal Property Coverage form, if no optional coverages are selected, loss valuation/ settlement is based on:

Actual Cash Value (ACV)

Entering into any agreement to commit, or by any concerted action committing, any act resulting in or tending to result in unreasonable restraint of the business of insurance is an example of:

Coercion Coercion- unreasonable restraint

All of the following defines claims covered under the CGL policy for products/ completed operations, EXCEPT:

Covers operations while being currently performed by the insured.

What coverage under the BOP automatically applies if a customer slips and falls on the named insured's premises, regardless of legal liability?

Medical expense coverage. -Medical expense coverage pays regardless of the insured's legal liability. It is a "good will" type of coverage where negligence is not a factor in the claim.

Which of the following statements is TRUE regarding how the standard Business owners policy additional coverage of "Collapse" becomes payable? 1. The remaining part of the structure must be judged unsound to rebuild 2. The collapse must be such that the building cannot be used as intended.

The collapse must be such that the building cannot be used as intended.

Which of the following is NOT a coverage extension on the Building and Personal Property coverage form? 1. Non-owned detached trailers for up to a limit of $5,000 2. Outdoor property up to a maximum of $500

The coverage extension for outdoor property provides coverage up to a maximum of $1,000, not $500.

The Medical Expense coverage for a standard Business owners policy will not pay for:

The insured while working in their business.

Why are interline endorsements used for in a Commercial Package policy (CPP)?

To simplify coverages and conditions among many different forms and apply only to two or more coverage parts.

A special cause of loss form of a commercial property policy imposes a limitation on the amount of coverage for the theft of jewelry of $__,500

$2,500

How many days does a building under construction have to be vacant for coverage to no longer apply?

60 days

What is the time limit provided under the basic extended reporting period under the CGL claims-made form for the reporting of claims that occurred before the expiration date of the policy? _0 days and _ years of coverage for the reported claims.

60 days and 5 years

The Commercial Property coverage extension "Business Personal Property Temporarily in Portable Storage Units" will provide $10,000 of coverage for up to: 1. 30 days 2. 90 days 3. 120 days

90 days

The insured has sustained a loss of income from a covered peril under his Business owners policy. What deductible applies to "loss of income" coverage? (hint: not money)

A "time deductible" of 72 hours

In terms of fidelity bonds, what does "position scheduled" refer to?

The bond covers anyone who works in a "scheduled position" - Rather than putting individuals by name it's by position

In terms of fidelity bonds, what does "name scheduled" refer to?

The bond covers only those persons listed by name on the bond's schedule.

An insured is covered under a standard Business owners policy for replacement cost coverage and has sustained a fire loss to his building. Due to changes in the building codes in his town, it's going to cost $20,000 extra just to comply with the new building codes and make the repairs. How much, if any, will the BOP pay for extra costs?

$10,000 There is a limit of $10,000 for the "increased cost of construction"

Coverage under the Builders' Risk form is written for _ year

1 year

Under "pollution cleanup and removal" coverage under the standard ISO BOP form, when must a loss be reported? within _____ Days

180

Wholesalers can be covered by the BOP if no more than _ _% of their total floor are is open to the public.

25%

Under the Coverage A insuring agreement of the commercial general liability policy, bodily injury or property damage must be caused by:

An occurrence

An insured has taken an inventory of his merchandise and discovers a substantial shortage of valuable stock. He submits a claim to his insurance carrier that provides his coverage under a Business owners policy. What coverage is provided by the BOP for the missing inventory?

No coverage would apply - Missing property with no physical evidence

Does a fire department service charge require to pay a deductible for "additional coverages" of the building and personal property coverage form?

No, it's the only additional coverage of the form that a deductible does not apply.

The newer CGL form now includes as insured's while acting in that capacity______________ employees

Volunteer

Convenience stores selling gasoline must have a minimum of __,000 sq. ft. in total floor are in order to qualify for BOP?

3,000

Of the following businesses, which one is NOT eligible for coverage under a business owners policy? 1. Pizza place 2. Barbershop 3. Auto dealership 4. Hair salon

Auto dealership are not eligible not matter the amount of their gross annual sales.

The form used to report the insured's actual and estimated business income under an Equipment Breakdown policy is called:

Business income—Report of Values

A Commercial General Liability policy provides coverage for exposures to loss arising out of which of the following operations?

On or away from the insured's premises.

Under a CGL policy, which would not qualify for coverage under the definition of "bodily injury"? 1. sickness 2. personal injury 3. disease

Personal injury IS NOT bodily injury as defined by the policy

The Business owners policy includes coverage for:

Property of others in the insured's care, custody, or control.

A commercial building worth $400,000 is insured under a Commercial Property policy for $240,000 and an 80% coinsurance clause applies. A $20,000 loss to the building has occurred. How much will the insured receive when a claim is filed?

$15,000 The insured should have carried $320,000 to be in compliance with the 80% coinsurance clause, therefore the building is 25% underinsured, penalizing the insured. 240,000/320,000 X 20,000 = $15,000

What is the additional limit provided by a standard Business owners policy "Debris Removal" in the event that the policy limit is exhausted in paying the loss?

$25,000

The additional coverage for debris removal under the building & personal property coverage form of a CPP, will pay to clean up the debris of other on the insured premises even if the insured has no damage to their own property. The maximum payable to remove this debris of others is $__,000

$5,000

Nina has the "Preservation of Property" additional coverage included in her standard Business owners policy. How many days from the day the property was first moved does coverage apply while the property is being stored at another location?

30 days

The liberalization clause of a Business owners policy automatically applies favorable expansions of coverage, for which a premium is not charged if the changes are made during the policy period or within _ _ days prior to the effective date of the policy.

45 days

Pete's business is covered by a standard Business owners policy. He has been accused by a customer of displaying inaccurate pricing on his website. Which of the following statements best describes how this claim would be handled by the BOP?

Coverage for any claim caused by a wrong description of the price of goods, products or services is excluded by the personal and advertising injury coverage of the BOP.

Coverage C- Medical Payments under CGL policies include reimbursement for all of the following, EXCEPT:

Employee claims for on-the-job injuries. - this would be covered under workers comp.

Bodily injury is defined as:

Illness and disease as well as physical injury. It also includes death if death results from bodily injury, sickness, or disease.

Conrad is a contractor with Builders' Risk coverage written on a reported value basis on his current construction job. He started clearing the land on May 1st, digging the basement on May 13th, pouring the foundation on May 31st, blocking the basement walls on June 5th, flooring the first floor above the basement on June 15th, and constructing the walls of the first floor on June 30th. When did Conrad's Builders' Risk policy begin providing coverage?

June 15th - Coverage begins on the date construction begins on the lowest floor that will be located above the basement.

Under a business owners policy, the "hired and non owned auto liability" endorsement would cover:

Vehicles borrowed by the insured

When will an insurance company pay damages on behalf of an insured under a CGL policy?

When the company determines that the insured is legally liable.