Insurance chap 15

The BOP automatically provides coverage for outdoor signs attached to covered buildings. Each sign is subject to what limit of insurance?

$1,000

Under the Businessowners Coverage Form, the Increased Cost of Construction Additional Coverage provides what amount of insurance for increased costs to comply with certain ordinances?

$10,000

After a building loss, the insured on a Businessowners policy incurs extra expenses to minimize the suspension of business. Extra expense coverage is provided during the period of restoration and for up to:

12 months after the direct physical loss

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

3 stories

The Businessowners Coverage Form covers property temporarily stored in another location to protect it from a covered peril for how many days?

30

Within how many days after an insured acquires new business property must the property be added to the BOP policy?

30

The Protective Safeguards Endorsement on a Businessowners policy 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

Which of the following risks is not eligible for coverage under the Businessowners policy? An apartment building of any size A wholesaler with 25% of the floor space open to the public A 10-story office building A construction company with $300,000 total annual payroll

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 A residential condominium association A shoe store that has a total of 15,000 square feet An office building that has a total of 75,000 square feet

A dry cleaning plant that has a total of 45,000 square feet

The Businessowners policy is best described as:

A package policy offering property and liability coverages

Which of the following is considered property not covered by the BOP? A satellite dish located on the roof of an insured building Landlord's furnishings located in common areas Personal property leased by the insured Outdoor furniture

A satellite dish located on the roof of an insured building

All of the following are considered an insured under the Hired Auto and Non-owned Auto Liability Endorsement on a Businessowners policy, except: An executive officer using a non-owned auto that is owned by an employee An employee using a hired auto with the named insured's permission An employee using an auto they own The named insured using a non-owned auto

An employee using an auto they own

The Hired Auto and Non-owned Auto Liability Endorsement on a Businessowners policy will cover:

Bodily injuries to others arising out of an employee's business use of a hired auto

Which of the following policies does NOT have a true coinsurance provision?

Businessowners policy

An unendorsed Businessowners policy with no optional coverages covers which of the following types of property?

Completed additions

A funeral home protected by an unendorsed Businessowners policy is damaged by a fire. Actual loss of business income is:

Covered, beginning 72 hours after the fire loss

Which coverage is not automatically provided by the Businessowners Coverage Form as an Additional Coverage?

Equipment breakdown protection

The definition of money provided by the Businessowners policy includes all of the following, except: Currency Evidences of debt Coins Traveler's and register checks

Evidences of debt

Which of the following would be an eligible risk under the BOP?

Fast food restaurant

All of the following statements regarding medical expenses coverage under the BOP are correct, except: Funeral expenses are not covered as medical expenses Injuries to others resulting from accidents on premises the insured owns or rents, or due to the insured's operations, are covered Medical expenses incurred within one year of the date of the accident are covered Payment of medical expenses is made regardless of who is at fault

Funeral expenses are not covered as medical expenses

A loss caused by which of the following would be automatically covered under a Businessowners policy?

Increased cost of construction

In order for coverage for the increased cost of construction to apply, a Businessowners policy must:

Insure the building on a replacement cost basis

A non-owned auto, as defined by the Hired Auto and Non-owned Auto Liability Endorsement on a Businessowners policy, would include an auto that:

Is owned by an employee and used for the insured's business

Which of the following is true regarding business personal property under a BOP? Coverage extends to property in vehicles within 500 feet of the premises It is covered while in transit It is covered only while within the building or an enclosed structure on the premises It is covered when located in or on the building at the described premises, or in the open within 100 feet of the premises

It is covered when located in or on the building at the described premises, or in the open within 100 feet of the premises

Fragile articles insured under a Businessowners policy are insured against specified causes of loss. All of the following perils are included in the policy's definition of specified causes of loss, except: Sinkhole collapse Riot or civil commotion Falling objects Landslide

Landslide

All of the following are eligible for coverage under a Businessowners policy, except: Office buildings up to 6 stories tall Manufacturers Appliance repair services Bakeries

Manufacturers

The BOP's Money and Securities Optional Coverage will cover:

Money and securities against theft, disappearance, or destruction

A fast-food restaurant is covered by a Businessowners policy. Under the policy's liability coverages, the insured must:

Notify the insurer as soon as practicable of an occurrence or offense that may result in a claim

When a proper entry is made on the Declarations page of a Businessowners policy, the Outdoor Signs Optional Coverage would cover all outdoor signs:

On an open perils basis

As defined by Section I of the Businessowners Coverage Form, the insured's business activities that occur at the described premises are known as the insured's:

Operations

Which of the following is automatically covered under a Businessowners policy?

Outdoor signs attached to the building

Under Section II of the Businessowners Coverage Form, all of the following are excluded, except: Damage to others while loading or unloading an auto Liability arising out of the ownership, maintenance, or use of a commercial auto Liability arising out of the ownership, maintenance, or use of a commercial watercraft Personal and advertising injury liability

Personal and advertising injury liability

Which of the following is a duty of the insured in the event of a property loss covered by a Businessowners policy?

Provide a prompt notice of loss to the insurer

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

Section III

Under the BOP, all of the following are covered under building coverage, except: Completed additions Property used to maintain or service a building, like outdoor furniture Machinery or equipment permanently installed in a building Tenant's improvements or betterments

Tenant's improvements or betterments

nder a Businessowners policy, all of the following statements about limits applying to liability coverage are correct, except: The Damage to Premises Rented to You limit is written on a per person basis The Medical Expenses limit applies per person The limit applying to bodily injury and property damage losses is written on a per occurrence basis The limit applying to personal and advertising injury losses applies per person or organization

The Damage to Premises Rented to You limit is written on a per person basis

After a direct physical loss, the Valuable Papers and Records Coverage Extension on a Businessowners policy provides coverage for:

The cost to research, replace, or restore lost information

Which statement about the Hired Auto and Non-owned Auto Endorsement available for Businessowners policies is correct?

The endorsement adds business auto coverage for a vehicle the insured rents

Which of the following best describes the purpose of the Protective Safeguards Endorsement available for Businessowners policies?

The insured is required to maintain the safeguards listed in the endorsements such as automatic sprinkler systems or security services

Business liability coverage provided by a Businessowners policy would cover which of the following?

The insured is sued for injury to a competitor caused by an advertisement

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

After a claim has been paid under the Businessowners Coverage Form, what happens to the recovery rights?

The rights are transferred to the insurer

The BOP defines securities to include all of the following, except: Tokens Traveler's checks Evidences of debt Non-negotiable instruments representing money

Traveler's checks

The Resumption of Operations condition requires that the insured do which of the following?

Use damaged property to resume operations

An insured has a Businessowners policy and wants coverage for physical losses to covered property caused by the interruption of water, communication, or power supply services. This can be provided by which endorsement?

Utility Services - Direct Damage

Under Section II of the BOP, the Duties in the Event of Occurrence, Offense, Claim, or Suit condition states that insureds must do all of the following, except: Cooperate with the insurer's investigation, settlement, or defense Authorize the insurer to obtain the insured's records Immediately send copies of legal papers related to a claim or suit Voluntarily incur expenses or make payments

Voluntarily incur expenses or make payments