Ch. 13: Businessowners Coverage Form

The insured may extend up to how much of the insurance for business personal property to property located off-premises?

10,000

The Additional Coverage for business income pays for the actual loss of business income for up to how many months after the date of the direct physical damage to the property?

12

All of the following are true about the Limits of Liability under Section II of the BOP, except: A The Products and Completed Operations aggregate limit is equal to the Liability and Medical Expense limit B The Damage to Premises Rented to You limit applies only to premises rented to the insured C The Medical Expense limit is a per person limit D The Liability and Medical Expense limit applies per person or organization for personal injury claims

A; its twice the liability and medical limit

Which of the following is true regarding the BOP's Time Element Utilities Services Endorsement? A It pays for loss to overhead transmission lines indicated in the schedule B It pays for loss of business income or extra expense at the described premises caused by the interruption of service at the described premises C It pays for loss to covered property caused by interruption of service D It increases the limit of insurance by the amount shown in the endorsement

B

Which statement is true regarding inspections and surveys under the BOP? A The insurer is obligated to make a survey when the policy is issued B The insurer has the right, but is not obligated to make inspections and surveys at any time C Inspections and surveys may be conducted only upon permission of the insured D The insurer is obligated to make an inspection when the policy is issued

B

Which statement regarding the Businessowners Policy is not correct? A The bodily injury limit is written on a per occurrence basis B The Damage to Premises Rented to You limit is written on a per person basis C The medical expense limit is written on a per person basis D The personal injury limit is written on a per person or organization basis

B

When a proper entry is made on the Declarations Page of a BOP, the optional coverage for outdoor signs would be: A Covered for named perils only B Covered on and away from premises C Covered on an open perils basis D Covered only if attached to the building

C

Which coverage is not an Additional Coverage under the Businessowners Coverage Form? A Pollutant clean up and removal B Business income and extra expense C Equipment breakdown D Increased cost of construction

C

Section II of the BOP policy provides the same liability coverage as:

Commercial General Liability Policy

A loss caused by which of the following would be covered under a BOP? A Off-premises power failure B Earth movement C Mechanical breakdown D Increased cost of construction

D

Choose the false statement regarding the Businessowners Policy. A Named perils coverage is available by endorsement B Pollution clean up and removal are covered as an Additional Coverage C Watercraft and associated equipment while afloat are not covered D Manufacturers are eligible for coverage

D

Section II of the BOP policy provides the same liability coverage as: A Commercial Inland Marine insurance B Business Liability insurance C Professional Liability insurance D The Commercial General Liability policy

D

The BOP's optional coverage for employee dishonesty covers which of the following? A Burglary of the insured's premises by employees B Dishonest acts of employees directed toward customers, such as giving incorrect change C Misrepresentations of the insured's products or services made by employees D Loss to business or personal property resulting from dishonest acts of employees

D

The resumption of operations condition requires that the insured do which of the following? A Return to the building within 60 days B Replace damaged property on a reimbursement basis C Submit a proof of loss within 30 days D Use damaged property to resume operations

D

Under the BOP, the Money and Securities Optional Coverage would cover which of the following? A Theft of currency by employees B Accounts receivable records C Destruction of business personal property D Theft of stock certificates

D

Which of the following is not an additional coverage under the BOP? A Business income B Forgery or alteration C Collapse D Personal effects

D

Which of the following is not covered under the BOP? A Business income B Electronic data valued at $10,000 C Interruption of computer operations caused by a virus D Errors or Omissions

D

Which of the following statements is false regarding the Businessowners Policy? A A motel 3 stories high is eligible B Money and securities coverage is available as an optional coverage C Employee dishonesty coverage is available as an optional coverage D Insurance losses are settled on an actual cash value basis

D

Which of the following would not be covered under a Businessowners Policy unless specifically activated on the Declarations page? A Fire Department Service Charge B Exterior building glass C Money Order and Counterfeit Paper Money Coverage D Employee dishonesty

D

Which statement about the BOP's Hired Auto and Non-owned Auto endorsement is correct? A It changes coverage for owned autos from named perils to open perils B Coverage is limited to owned vehicles C It covers personal use of a non-owned vehicle D Business auto coverage for a vehicle the insured rents is added to the coverage

D

The BOP may be cancelled by which of the following insureds?

first named insured

The Businessowners Coverage Form to the Businessowners Policy provides coverage on which of the following basis?

open perils

Which covered causes of loss form is used for the BOP?

open perils

The Common Policy Conditions are found in which section of the BOP?

section 3

The Earthquake endorsement to the BOP provides that coverage continues for how long after a policy expires?

168 hours

Which statement is false regarding the Businessowners Policy? A First aid expenses are included in Supplementary Payments B Hired and non-owned autos may be included by endorsement C Ineligible properties include auto dealers, banks and places of amusement D Supplementary Payments do not affect the policy limits

A

Which statement is false regarding the Businessowners Policy? A Supplementary Payments include first aid expenses B Hired and non-owned autos may be included by endorsement C Auto dealers, banks and places of amusement are not eligible D Supplementary Payments do not affect the policy limits

A

Each of the following standard limitations under the BOP's Section I - Property limits of insurance is correct, except: A A loss or damage occurrence is limited to the applicable limit of insurance shown in the Declarations B The Buildings limit of insurance will automatically increase by 10% each year C The Business Personal Property limit will increase by 25% yearly, subject to the average monthly values of the past year D $1,000 per outdoor sign attached to the building per occurrence

B

Under a Businessowners Policy medical expenses coverage: A Is written in place of bodily injury B Provides coverage without regard to negligence C Prohibits further action for recovery after acceptance of payment D Pays sums for which the insured is legally liable

B

Under the Businessowners Policy, if there is other insurance covering the same loss how will the policy respond? A The Businessowners Policy does not pay if there is other insurance applicable to the loss or damage B The insurer will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance C The Businessowners Policy pays 50% of the loss or damage D The Businessowners Policy will pay its proportional share of the loss or damage

B

Which of the following is not an additional coverage under the BOP? A Business income B Personal effects C Collapse D Forgery or alteration

B

Which of the following is not an additional coverage under the BOP? A Forgery or alteration B Personal effects C Business income D Collapse

B

Which statement is false regarding the Businessowners Policy? A Hired and non-owned autos may be included by endorsement B Ineligible properties include auto dealers, banks and places of amusement C First aid expenses are included in Supplementary Payments D Supplementary Payments do not affect the policy limits

C

The Named Perils endorsement: A Extends bodily injury and property damage liability to the use of any non-owned auto B Provides coverage for damage caused by the interruption of power to the insured premises C Excludes hired and non-owned auto liability coverage D Changes the open perils coverage to named perils coverage

D

Who of the following is not considered an insured under a BOP? A Employees of the named insured, while acting within the scope of their employment B The legal representative, if the named insured dies C Any person while acting as the named insured's real estate manager D Anyone driving the named insured's mobile equipment on public roads, without the named insured's permissio

D

Which type of coverage does the BOP provide for preservation of property?

open perils for 30 days

Damage to a building insured under the Businessowners Policy is valued on which basis?

replacement cost

The unendorsed Businessowners Policy will pay no more than what amount for the theft of jewelry?

2500

Motels may not be written insured by a Businessowners Policy if they exceed:

3 stories

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

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 Businessowners Policy if the insured building has been vacant or unoccupied for how long?

60 days

All of the following are excluded under the BOP, except: A Increased cost of construction B Losses caused by off-premises power failure C Losses caused by earth movement D Losses caused by mechanical breakdown

A

All of the following are included in Section I of the Businessowners Coverage Form, except: A An automatic 90% coinsurance clause B Business Income and Extra Expense coverages C An automatic increase in the limit of insurance for the building D An automatic increase in Business Personal Property Coverage to offset seasonal variations in stock

A

All of the following are true regarding medical expenses coverage under the BOP, except: A The policy excludes funeral expense B Medical expenses incurred within one year of the date of the accident are covered C Accidents on premises the insured owns or rents, or due to the insured's operations are covered D Payment of medical expenses is made regardless of who is at fault

A

Each of the following is a characteristic of an eligible risk for the BOP, except: A Manufacturing occupancy B Small business C Building occupies 20,000 square feet of area D Apartment building

A

Section I - Property of the BOP covers which of the following types of property? A Outdoor furniture B Pet animals C Land D Accounts, bills, and other evidences of debt

A

The resumption of operations condition requires that the insured do which of the following? A Use damaged property to resume operations B Replace damaged property on a reimbursement basis C Submit a proof of loss within 30 days D Return to the building within 60 days

A

Which of the following coverages is not included in either of the Utility Services endorsements? A Direct loss to electronic data B Direct loss to covered property C Loss due to interruption of water supply coverage D Indirect loss due to Business Income loss

A

Which of the following is not eligible for coverage under a Businessowners Policy? A Auto Dealerships B Shoe Repair Shops C Barber Shops D Beauty Parlors

A

Choose the correct statement regarding Extra Expense Coverage under a BOP. A Extra Expense coverage is not available to commercial tenants B Coverage is for 12 months after the direct loss C There is a monthly limitation equal to 1/12th of the Property Limit of Insurance D Extra Expense coverage is provided until the Property Limit of Insurance is exhausted

B; there's no dollar limit for coverage on extra expense incurred within 12 months

All of the following are automatically covered under the Businessowners Policy, except: A Personal property of others that is in insured's care B Outdoor fixtures C Mechanical breakdown D Business personal property

C

Each of the following individuals is an insured under the BOP, except: A The manager of a limited liability company B Any person acting as the named insured's real estate manager C A sole proprietor's minor child D The insured's legal representative if the insured dies

C

The outdoor property coverage extension will not pay for which of the following? A Unattached signs B Radio, and television antennas C Up to $5,000 for fences D Up to $1,000 for any one tree, shrub, or plant

C

Under Section II - Liability & Medical Expenses, who is covered for medical expenses after being injured while at an insured premises? A A cleaning crew hired by the insured B A person taking part in athletics C A client of the insured D A tenant of the insured

C

Which of the following is true regarding the BOP's Time Element Utilities Services Endorsement? A It pays for loss to overhead transmission lines indicated in the schedule B It pays for loss to covered property caused by interruption of service C It pays for loss of business income or extra expense at the described premises caused by the interruption of service at the described premises D It increases the limit of insurance by the amount shown in the endorsement

C

Which statement about the BOP's Hired Auto and Non-owned Auto endorsement is correct? A It covers personal use of a non-owned vehicle B It changes coverage for owned autos from named perils to open perils C Business auto coverage for a vehicle the insured rents is added to the coverage D Coverage is limited to owned vehicles

C

In which section of the BOP would coverage for outdoor property be found?

coverage extensions

What is the method of property valuation used under the Businessowners Policy (BOP)?

replacement cost