Unit 19 QUIZ Qs

Which of the following losses would not be covered under the property coverage of the business owners policy? A) An insured moved inventory to another location after a tornado. Two days later, a fire in the new location damaged that property. B) A steam engine explosion at the insureds business Spewed toxic chemicals onto property belonging to another company. That company's owner sued the insured for the costs to clean up the chemicals. C) When a tornado damaged a nearby business, authorities closed off the area for one week to clean up the damage. The insured lost business income during that period. D) The insured has a 5000 square-foot addition under construction when a fire starts and damages a majority of the building

B) A steam engine explosion at the insureds business Spewed toxic chemicals onto property belonging to another company. That company's owner sued the insured for the costs to clean up the chemicals.

Which one of the following coverages is not included in the business owners policy? A) Property damage liability B) Professional liability C) Bodily injury liability D) Medical expense

B) Professional liability

All of the following are common exclusions in the business owners policy except... A) water, including flood and sewer backup B) damage caused by insects, rodents, or birds C) collapse D) earth movement

C) collapse

All of the following are common underwriting requirements in a BOP except... A) less than 100 employees B) revenues of $3 million or less C) businesses occupying up to 25,000 sq ft D) more than 100 employees

D) more than 100 employees

The standard deductible for the business owners policy is... A) $500 B) $1,500 C) $1,000 D) $2,000

A) $500

Personal property is covered when it is within how many feet of the premises? A) 100 B) 200 C) 500 D) 50

A) 100

Which of the following losses would be excluded under the property coverage of the BOP? A) All of these are excluded B) Pianos in an insured's warehouse were damaged by dryness during an extremely cold winter. C) Termites damaged an insureds building D) An error in the design specifications for an insureds building resulted in the buildings collapse six months after construction was completed.

A) All of these are excluded

Which of the following is not a common exclusion under business liability coverages? A) Liability related to oral or written publication that slanders a person or organization B) Liability for damage to property the insured owns, rents, or occupies C) Liability arising from rendering professional services D) Liability related to liquor that was distributed by the insured

A) Liability related to oral or written publication that slanders a person or organization

On the business owners policy declarations page, The named insured is listed as a limited liability company. In this example, all of the following individuals would be insured except... A) The named insured's partner or spouse B) The managers of the organization C) The named insured D) Members of the organization

A) The named insured's partner or spouse

Which of the following is not excluded under business owners liability coverage? A) Liability assumed under an insured contract B) Pollution losses caused by the insured C) Damage to the insureds own work D) The cost of recalling the insureds product because of a suspected safety hazard

A) liability assume under an insured contract

Which of the following losses would not be excluded under the business owners policy? A) loss caused by a power failure that occurs on the insureds premises B) loss caused when an insureds equipment breaks down and prevents the insured from earning income C) loss caused when underground water seeps through the foundation of an insureds building D) additional expense incurred when the insureds damaged building is required by a city ordinance to be completely torn down and rebuilt rather than repaired

A) loss caused by a power failure that occurs on the insureds premises

In addition to maximum floor space of 25,000, the business owners eligibility rules limit eligible risks to a maximum of... A) $1.5 million in annual sales B) $3 million in annual sales C) $750,000 in annual sales D) $3.5 million in annual sales

B) $3 million in annual sales

There are two sets of conditions that apply to every policy for property coverage. These conditions are known as the property general conditions and... A) The liability conditions B) The property loss conditions C) The medical expense conditions D) The limits of insurance conditions

B) The property loss conditions

Which of the following statements about a supplementary payment is not correct? A) Supplementary payments do not reduce the policy limit B) supplementary payments do not cover expenses that the insurance company incurs C) supplementary payments cover costs the insured is required to pay because of a lawsuit D) Supplementary payments cover up to $250 for the cost of bail bonds

B) supplementary payments do not cover expenses that the insurance company incurs

Which of the following is not one of the five different classes of business personal property covered? A) a tenants improvements and betterments B) the land that the property is on C) the property of others in the insureds care D) the exterior building glass

B) the land that the property is on

If an insured has the preservation of property additional coverage included in their BOP, how many days does coverage apply while the property is being stored in another location? A) 30 days from the day the claim was filed B) 60 days from the day the claim was filed C) 30 days from the day the property was first moved D) 45 days from the day the property was first moved

C) 30 days from the day the property was first moved

Mechanical breakdown coverage is... A) A coverage extension of the BOP B) Automatically provided in a BOP C) An optional BOP coverage D) Not available in a BOP

C) An optional BOP coverage

The conditions that apply to an entire business owners policy are called... A) Common policy exclusions B) Common policy endorsement C) Common policy conditions D) Common policy declarations

C) Common policy conditions

Which of the following would not be covered under the building coverage of the business owners policy? A) Materials or equipment within 100 feet of the premises B) Additions under construction C) Outdoor fences D) Completed additions

C) Outdoor fences

An insured is required to have a sprinkler system and a burglar alarm installed on the premises in order to meet Certain conditions of a policy endorsement. Which endorsement does the insured likely have? A) The utility services- direct damage coverage endorsement B) The common policy conditions endorsement C) The protective safeguards endorsement D) The utility service- time element coverage endorsement

C) The protective safeguards endorsement

Medical expenses will pay reasonable expenses for first aid, medical services, and funeral services within... A) 180 days of the date of the accident B) Three years of the date of the accident C) 90 days of the date of the accident D) One year of the date of the accident

D) One year of the date of the accident

The largest office building risk that may be eligible for a business owners policy is... A) Three stories and 50,000 ft.² B) Three stories and 75,000 ft.² C) Six stories and 75,000 ft.² D) Six stories and 100,000 ft.²

D) Six stories and 100,000 ft.²

Which of the following endorsements covers loss or damage to a property caused by an interruption in water, communication, or power supply service? A) The utility services- time element coverage endorsement B) The protective safeguards endorsement C) The hired auto and non-owned auto liability Endorsement D) The utility services- direct damage coverage endorsement

D) The utility services - direct damage coverage endorsement

Which of the following statements regarding the employee dishonesty optional coverage is not correct? A) Coverage of an employee is canceled immediately upon discovery the employee committed a dishonest act B) the insurance company will not pay for a covered loss that is discovered 1 year from the expiration of the policy C) only a loss that occurs during the policy period is covered D) the insurance company will not pay for a covered loss that is discovered after 3 years from the expiration of the policy

D) the insurance company will not pay for a covered loss that is discovered after 3 years from the expiration of the policy