Business owners policy BOP

The inspections and surveys condition in a business owner's policy

Allows the insurer the right to inspect the insured premises

Which of the following is in eligible for a business owners policy?

An automobile sales and servicing operations

Which of the following buildings would typically be eligible for a business owners policy?

An eight story apartment building A bar and grill An office building seven stories and height**** A 90,000 square-foot building out of which a retail clothing stores operated

Which of the following contractors would typically be able to purchase business owners coverage?

An individual who installs automatic garage door opener's A person who does computer service and repair***** A general contractor An interior designer

Property coverage under the artisan program is provided on

An open peril basis

Following a property loss that is covered under a business owners policy, if the insured and insured cannot agree on the amount of the loss, what method is used to resolve the issue?

Appraisal clause

The liquor liability endorsement should be recommended to insured under new business owners policy who

Are not in the alcoholic beverage business and do not furnish alcoholic beverages but hold off site company meeting at places were alcoholic beverages may be consumed Consume alcoholic beverages Are in the business of making, selling, or serving alcohol at beverages are not in the alcoholic beverage business but serve alcoholic beverages to employees at a company function**** Are not in the alcoholic beverage business but serve alcoholic beverages to employees at a company

And insured under a business owners policy suffers a loss. Which of the following is not one of the duties that ensure it is required to carry out?

Arrange for their own independent claims adjuster to review the damage to property**** Keep records of expenses incurred to preserve and protect property Resume business operations as soon as practicable Probably notify the insurer of the loss

All of the following are the advantages of policy prepackaging except

Better fit for large businesses

Which of the following types of policies is made available under the commercial general liability coverage program?

Both an occurrence policy and he claims made policy****** A claims made policy An occurrence policy Neither in occurrence policy nor a claims made policy

The standard business owners policy covers all of the following causes of loss except

Building ordinance or law

All of the following are specific property not covered in a BOP except

Business personal property within 100 feet of the premises

How is a professional liability policy written?

Claims made

All of the following are supplemental payments found in liability policies except

Cost the insured incurred in hiring their own attorney

And insured pays the premium based on estimated sales. The policy. Ended December 30, 2014 until what date does the insurer have the right to examine the insured's books and records?

December 30, 2015**** September 15, 2016 December 30, 2016 December 30th, 2017

Which endorsement adds coverage for employee use of automobiles in the insured's business and the insured use of rigid autos if no coverage is provided on a business auto policy?

Hired and nonowned auto Liability endorsement

Which of the following injuries may be covered under coverage C - medical payments of a commercial general liability policy?

Injuries to a member of the general public that occurs on premises

Which of the following is true of an extended reporting period?

It gives the insured additional time after the policy expiration date to submit claims to be insurance It extends the coverage. Of the policy past the original expiration date It allows losses that occurred prior to the retroactive date to be covered***** When it is over it can be reset anytime

Barry an insurance producer, fails to obtain automobile insurance for Marvin after agreeing to do so. Marvin is involved in an automobile accident after running a red light and is found to be at fault. The damage to the other vehicle total is $5000 which statement regarding various errors and omissions liability policy is true?

It will provide coverage because the damage to the client resulted from the producers negligence

Under the commercial general liability policy, to be paid under coverage see medical payments, medical expenses must be incurred and reported to the insured within

One year of the end of the policy. The policy. The extended reporting. One year of the date of the accident occurred****

When is an endorsement available for hired and nonowned auto on BOP liability?

Only if the insured does not have commercial auto coverage

And insured under a business owner's policy publishes material, in an advertisement, that infringes on someone else's can't be right. Under what coverage with liability for this event be covered

Personal and advertising injury

Which of the following could be a feature of unimproved land?

Residence under construction And abandoned shed**** A condemned barn Water

Professional liability must generally be settled in court under

The law of torts

The cancellation provision in a typical business owners policy contains all the following except

The method of transferring all or a portion of the owners rights

And insured has a claims made professional liability insurance policy with the policy inception date and a retroactive date of November 1. Which of the following is true of claims that stem from occurrences prior to that date?

They cannot be covered*** They could be covered if they were filed before the end of the policy extended reporting. They could be covered if they were filed after the policy is retroactive date We could be covered if the policy is a blanket policy

Which common policy condition prohibits the insured from us so I need the policy rights to any other person or entity without the written consent of the insurance company?

Transfer of rights and duties under the policy

And insured under a business owners policy is a tenant that leases its business premises. However the business premises lack enough business personal property to conduct normal business operations. For this reason the insured will treat the business premises as if they were

Vacant*** Excluded from coverage A fire hazard Subject to audit

A professional liability policy covers the professionals employees for all the following except

Willful misrepresentation

A business insured by a business owners policy has to suspend operations after he fired. The policy pays for business income loss during the period of suspension. After the repairs to the property are completed, the business is not able to get its prior income level back until 45 days after the loss. For how long will the policy continue to pay for the loss of business income after operations resume?

Zero days***** 30 days 60 days 75 days

Personal EFax valued at $3000 our loss due to a covered peril from an insurance business premises. What amount of this loss is covered by the insurance business owners policy?

Zero dollars $1000 $2500 $3000****

And insured under a business owners policy except a check for $4000 which turns out to have been forged and therefore will not be honored by the bank. How much will the policy pay for this loss?

Zero dollars $1000 $2500 $4000***

And insured under a business owners policy how do you fire that destroyed some of its accounts receivable records the insured incurred $1000 of expenses to restore most of its accounts receivable records the records that could not be restored cause the business to lose an additional $3000 for accounts receivable that cannot be collected. Under the accounts receivable coverage extension, how much of this loss will be covered?

Zero dollars $1000 $3000 $4000 ****

And insured has a BOP with a $500,000 limit of insurance on property damage liability losses. The insured Also has another liability only policy that enters property damage or loss is up to you to hundred and $250,000. From what you have learned about the other insurance condition in the BOP, if the insured suffers eight $400,000 loss, how much will the BOP pay?

Zero dollars $150,000 $200,000 $400,000****

The pollutant cleanup and removal coverage in the business owners policy has a limit of

$10,000 in any 12 month premium

A producer has a client who has experience a covered building loss of $10,000. Up to what amount will the policy pay for debris removal on this loss, exclusive of any deductible that may apply?

$2500 $5000 $7500 $10,000*****

Bobs business owners policy has a $300,000 limit for liability and medical expenses. A covered loss which injured five people for $100,000 each occurs what is the maximum amount payable under the policy?

$300,000

If an insured held a claim is made professional liability policy continuously for 10 years, the fewest claims would most likely be filed during what policy year?

1

Under a business owners policy, if an insurer wants to non-renewal a policy due to nonpayment of premium how many days before the expiration date must the insurer notify the policy owner?

10 days

Under a business owners policy, a loss of earnings is subject to a

12 month time limit for business income

Up to how many employees me a contractor have and still be eligible for coverage under the artisan program?

20

Under business personal property limit - seasonal increase, seasonal fluctuations will automatically increase the limit for business personal property by

25%

Under the additional coverages of a BOP property removed to protect it from loss will be covered at another location for up to

30 days

Under the additional coverages of a bop, property removed to protect it from los will be covered at another location for up to

30 days

an extended reporting period is available under which type of policy?

A claims Made policy

Which of the following types of policies is made available under the commercial general liability coverage program?

A claims made policy Both an occurrence policy MD claims made policy Neither an occurrence policy nor a claims made policy An occurrence policy****

For which of the following events would an insurance business owner policy pay the individuals medical expenses?

A partner in the insured business is severely lacerated when he walks through a glass door A roofing contractor is injured in a fall An individual got injured during a baseball game at the company picnic A customer breaks a heel on her shoe on the walkway up to the insured store, falls and sprained her wrist****

All of the following may be considered insured under a bop except

A third-party hired by the insured

Regarding the professional liability of insurance agents, all the following are reasons that in ensuring might bring an action against an agent except

Binding on authorized Risks Fraud involving intentional concealment of material facts**** Failure to notify the insured of the policy cancellation for nonpayment of premium Failure to act within the scope of the agents contract

I'm out is working on the roof of his house, and his neighbor is watching from the ground. When roof shingles are thrown off the roof they hit the neighbor in the face injuring his eye. Which best classifies the homeowners legal liability?

Bodily injury

The commercial property declarations page contains which of the following?

Description of the property insured

What is the term for a specialized form of liability insurance covering legal expenses and damages to shareholders, members, or others, for the personal legal liability of directors and officers of a corporation or nonprofit organization because of wrongful act in the course of performing their official duties?

Directors and officers insurance

And executive is accused of sexual harassment what type of coverage would respond?

Employment practices liability

The types of actions for which accountants may be held responsible include all the following except

Errors in judgment that cause no harm**** Failure to file proper tax returns on time Incorrect financial status reports Misappropriation of funds by employees

Which of the following would be covered as a supplementary payment under a business owners policy?

Expenses that insured incurred to travel out of state without prior notice to the insurer in order to research a topic for pertinent to a liability claim investigation $1000 in earnings the insured lost over a period of four days in order to testify his own defense at the insurance request a trial******** The amount of damages awarded to a plaintiff by a court as a result of a trial to determine loan for a bodily injury The cost of a bail bond required because of use of a vehicle covered by a commercial auto policy

In order to avoid suspending business operations after a fire, an insured rent a nearby building and furnish is it with the equipment needed by the business. What is the name of the coverage under which the insured will be reimbursed for these costs?

Extra expense Building coverages ***** Business income Debris removal

Expenses that an organization would not have incurred if business interruption had not existed are known as

Extra expenses

Which of the following is in eligible for coverage under the business owners policy?

Fast food restaurant with a gross sales of $2 million and 10,000 sq ft.

And insured's business owners policy becomes effective on June 1, 2014. The policy. For this policy will end on

June 1, 2015

From the insurance standpoint, which of the following may result from purchasing a BOP policy as compared to purchasing multiple coverage is through two or more monoline

Less chance of gaps in coverage**** Higher overall premium cost Increased risk of adverse selection More chance of paying for overlapping coverages

After a loss and insured under a business owners policy and tends to leave the damage property to the insurer. Which of the following policy conditions prohibits the insured from doing this?

Loss payment Transfer of the insured's rights and duties under the policy Duties of the insured in the event of a loss Abandonment*****

All of the following statements about coverage provided by a business owners policy for medical expenses are true except

Medical expenses are covered without regard to liability***** Only injuries that arise from accidents that occur during the policy period are covered Only injuries for which the insured is at fault are covered Covered expenses include the cost of a funeral if he injury resulted in death

All of the following would be covered under the medical expense coverage of a business owners policy except

Mental health counseling

All of the following will be considered coverage territory except

Mexico

Which of the following types of policies may include a retroactive date?

Neither in occurrence policy nor a claims madepolicy An occurrence policy A claims made policy**** Both an occurrence policy and the claims made policy

Which of the following best describes business income?

Net profit or loss that would have incurred plus normal operating expenses, including payroll, that continues during the suspension

All the following coverages are included in the BOP standard form without requesting coverage extensions except

Newly acquired property

One of the insured's employees unknowingly excepted to counterfeit $100 bills. How much of this loss would be covered by the insured's business owners policy?

None of it Up to $50 Up to $100 All of it

To expand its operations, a business insured by a business owners policy purchased an additional business location on November 1. Unless the new premises is reported to the insurance sooner, and what date will coverage under the newly constructed or acquired property coverage extension end?

November 8 November 15 December 1**** December 31

A business owner has a liability policy for his business. Sometimes during the policy period, a loss occurs, but the business owner does not become aware of the loss until several years after the policy expires. Which of the following types of policies would cover the loss?

Occurrence policy (covers loss that occurs during the policy period, regardless of when the claims is made)

And insured under a business owners policy had a loss on October 10, 2012. The policy. Ended November 25, 2012. On what date does the insured's right to bring legal action against the insurance expire?

October 10, 2013*** November 25, 2013 October 10th, 2014 November 25, 2014

If an insured bakery is sued because it's marketing states that the products of another bakery may not be safe, which coverage of a commercial general liability will defend the suit?

Personal and advertising injury liability

What is the name of the coverage in a business owners policy that will cover damage caused by any peril would cover properties move to another location in order to protect it from a covered cause of loss?

Preservation of property

To assume all expenses incident to the defense of any claim and to fully compensate an indemnity for a loss or expense, and diminished by the cost of defending a claim or litigation is the definition of

Reverse waiver Professional liability coverage***** A hold harmless agreement vicarios liability

While driving and insured lost control of her automobile and drove it through the side of a hardware store damaging the store and three isles of hardware good. It was determined that the insured was driving the posted speed limit and that her car was in good repair. The hardware store owner will likely

Seek a claim for property damages from the drivers insurance

And insured under a business owner's policy who operate a small restaurant is concerned about losing perishable food stuck in the event of a power outage. What is the insurance producer recommend?

Spoilage coverage endorsement**** Removal of utility outage exclusion endorsement Protective safeguards endorsement Mechanical breakdown optional coverage

And insured lives in an area that has Rollinghills and lots of trees. The pathway up to his house has been known to be covered with ice during the winter months as well. One day while delivering the morning meal, a post man slipped and fell on the injured pathway injuring his back and head. The insured will be liable for

The bodily injury sustained by the post man

In a professional liability policy which of the following will be considered the insured

The business that caused injuries

A stack of boxes containing merchandise falls over in the insured's warehouse and injures a contractor hired by the insured business, a warehouse employee, and a customer. Which of these individuals medical expenses will be covered under the medical expense coverage of the insured's business owner policy?

The contractor, the customer, and the employee The customer only***** The contractor and the customer The contractor and the employee

Compared to the premiums for occurrence-based policy's, the premiums for claims based professional liability policies are higher in the early policy years because

The deductible options are limited The limit of liability increases with time The exposure increases each year with a fix for attractive date Professional liability is risky*****

And insured has added the liquor liability endorsement to her business owners policy. Which of the following losses would be covered by her policy?

The incident that led to the insured's liability occurred while her liquor license was suspended The insured's liability loss was also covered under another policy The insured was found liable for furnishing alcohol to a person under the legal drinking age An individual became ill after drinking a defectively package bottle of the insureds wine*****

Which of the following statements is true in regard to the coverage of lawsuit under the liability coverage provided by a business owners policy?

The insurance cost of defending a lawsuit deplete the policies limit of insurance**** The insurer is not required to defend the insured against cover liability lawsuits The insured may refuse to settle the lawsuit out of court The insurance approval is required for any out of court settlement agreement

Which of the following statement is correct regarding the degrees removal coverage under the BOP?

The insured's element of liability is 25% of the sum of the direct last payment plus the deductible

All of the following are supplemental payments found in liability policies except

The insurer does not have the right to inspect the insured's property and operations

One advantage of a claim is made liability form from the insurers point of you is that

The insurer does not he claims years after the occurrence caused the damage

Under the common policy conditions of a policy, all of the following are true about changes in a policy except

The insurer must obtain permission from all named insureds to make the change

The members of a limited liability company or insurance under a business owners policy if

The limited liability company is designated as a named insured

The members of a limited liability company are insured under a business owners policy if

The limited liability company is designated as the named insured

Frank's steaks furnishes meat to steak houses. An accident on the premises causes the building to lose refrigeration for 32 hours. The state inspectors will not allow the meat in the refrigerating units to be sold for human consumption, and Frank loses $18,500 in disposing of the meat. What coverage under Frank's BOP policy will cover the loss?

Utility service - direct damage

Uncle Billy's burger bar was forced to close for 10 days last August when the power company's transformer was destroyed by lightning and uncle Billy was without electricity. Which of the following endorsements could be added to Billy's business owners policy that would provide coverage against loss of income from such events?

Utility services - time element endorsement

Due to poor business conditions a furniture retailer insured by a business owner policy has since June 1 been using only 25% of the space in the building he owns. I hope his business will pick up soon so he doesn't rent out the uncapitalized area. The circumstances remain the same until August 2, when a fire completely destroyed the building. The insured to be OP has a $100,000 limit of insurance on building coverage how much will the insurance pay for this loss?

Zero dollars $25,000 $85,000 Hundred thousand dollars****

The front edge of a business premises covered by a business owner's policy is flooded and as a result loses a fence that will cost $750 to replace and two trees valued at $250 each. What amount with the policy paid for this loss?

Zero dollars**** $500 $750 $1250