13

All of the following are covered under a BOP, except: A Money and securities B Outdoor furniture C Building fixtures, including outdoor fixtures D Permanently installed machinery or equipment

A

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

A

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

A

The insurer may cancel a BOP when an insured building has been vacant or unoccupied for how many days? A 60 B 30 C 90 D 120

A

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

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 First aid expenses are covered under Medical Expenses, not Supplementary Payments.

All of the following are Optional Coverages under the Businessowners Policy, except: A Outdoor signs B Personal property of others that is in the insured's care, custody and control C Money and securities D Employee dishonesty

B

For how many hours after the first tremor would earth movement damage be covered under the Businessowners Earthquake endorsement? A 72 hours B 168 hours C 144 hours D 24 hours

B

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

C As with Business Income, there is no dollar limit for coverage on Extra Expense that is incurred within 12 consecutive months of the date of the direct physical loss or damage. The only limitation is time.

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

D

The unendorsed Businessowners Policy will pay no more than what amount for the theft of jewelry? A $3,500 B $7,500 C $5,000 D $2,500

D

Which of the following is automatically covered under the Businessowners Policy? A Mechanical breakdown of pressure systems and air conditioners B Preservation of property up to 60 days C Off-premises power failure D Signs attached to the building

D

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

D

Which of the following is true regarding the restoration period under the BOP? A It begins 48 hours after the time of the direct physical loss and ends when repairs are completed or when business resumes at a new permanent location B It begins 48 hours after the time of the direct physical loss and ends when business income equals the average business income during the 12 months immediately preceding the loss C It begins 72 hours after the time of the direct physical loss and ends when business income equals the average business income during the 12 months immediately preceding the loss D It begins 72 hours after the time of the direct physical loss and ends when repairs are completed or when business resumes at a new physical location

D

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

A

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

B

Which of the following is covered under Section II of the Businessowners Coverage Form? A Watercraft Liability B Medical payments to volunteer workers C Professional Liability D Employers Liability

B

Which of the following is not an exclusion under Section II of the Businessowners Coverage Form? A Professional Liability B Medical payments to volunteer workers C Employers Liability D Watercraft Liability

B

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

C

In which section of the BOP would coverage for equipment breakdown be found? A Coverage extensions B Additional coverages C Optional coverages D Endorsements

C

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

C

Section I of the Businessowners Policy does not cover which of the following? A Permanently installed fixtures B Personal property of customers held for repairs C Permanently installed machinery and equipment D Computers permanently installed in a motor vehicle subject to registration

D

The Businessowners Coverage Form to the Businessowners Policy provides coverage on which of the following basis? A Simplified Perils B Modified Perils C Broad Perils D Open Perils

D

After a storm, ABC Bakery suffers the following losses: $500 in damage to a free-standing sign, $500 in damage to an attached sign, $500 in damage to a fence, and $1,500 in damage to a decorative Japanese maple tree. How much will ABC Bakery's BOP pay for these losses if the insured had purchased an Outdoor Property extension? A $2,500 B $3,000 C Zero D $2,000

D The BOP's coverage extensions will pay the full cost of the non-attached sign and the fence. The attached sign is not covered, and the tree would only be covered up to $1,000.

An unendorsed BOP with no optional coverages covers which of the following properties? A Completed additions B Automobiles used in the business C Money and Securities D Motor trucks that deliver the insured's goods

a

What is the method of property valuation used under the Businessowners Policy (BOP)? A Replacement Cost B Depreciation C Actual Cash Value D Stated Value

a

Which type of loss does not reduce an aggregate limit within the Businessowners Coverage Form - Section II? A Medical expenses B Premises and operations C Product/completed operations D Damage to Premises Rented to You

d

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

A

Each of the following standard limitations under the BOP's Section I - Property limits of insurance is correct, except: A The Buildings limit of insurance will automatically increase by 10% each year B A loss or damage occurrence is limited to the applicable limit of insurance shown in the Declarations 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

A

In which section of the BOP would coverage for outdoor property be found? A Coverage extensions B Endorsements C Additional coverages D Optional coverages

A

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

A

The BOP's optional coverage for money and securities will cover which of the following? A Money and securities against theft, disappearance or destruction B Business personal property C Loss of money or securities resulting from dishonest acts of employees D Accounts receivable records necessary to prove amounts owed the insured

A

The spouse of which named insured is not eligible as an insured under the BOP? A Trustee B Partner C Sole proprietor D Party to a joint venture

A

Under the BOP, if coverage for business property equals 100% of the average monthly values for the preceding 12 months, an automatic increase of what amount is provided to offset seasonal variations in stock values? A 25% B 5% C 10% D 15%

A

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

A

Under the BOP, the insurer may examine and audit books and records at any time during the policy period and up to how many years following policy termination? A 3 B 1 C 5 D 7

A

Liability coverage under the BOP includes coverage for: A Property damage to impaired property B Bodily injury or property damage C Product recall D Bodily Injury to an employee arising in the course of employment

B

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? A 24 B 12 C 6 D 18

B

The BOP covers property while it is being temporarily stored in another location for how many days? A 15 B 30 C 60 D 10

B

The Common Policy Conditions are found in which section of the BOP? A Declarations Page B Section III C Section I D Section II

B

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

C

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

C

The BOP may be cancelled by which of the following insureds? A Owner B Any partner C First named insured D Named insured

C

The Businessowners Policy will cover damage to the building on which settlement basis? A Functional Replacement Cost B Actual Cash Value C Replacement Cost D Agreed Value

C

The insured may extend up to how much of the insurance for business personal property to property located off-premises? A $2,000 B $7,500 C $10,000 D $1,000

C

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

C

Which form would cover a business owner who operates out of a temporary location during restoration? A Expediting Expenses B Contingent Business Interruption C Extra Expense D Business Income

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 increases the limit of insurance by the amount shown in the endorsement 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 pays for loss to covered property caused by interruption of service

C

Which of the following would be covered under a BOP? A One of the insured's products is recalled due to a mechanical imperfection B One of the insured's employees is injured on the job C The insured is sued for injury to a competitor caused by an advertisement D The insured violates a contract with a competitor agreeing not to advertise in their zip code

C

The Damage to Premises Rented to You coverage under the Businessowners Policy is subject to which of the following limits of liability? A Per person limit B General aggregate limit C Combined single limit D Per fire limit

D

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

D

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

D

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

D

Which covered causes of loss form is used for the BOP? A Stated Value B Actual Cash Value C Replacement Cost D Open perils

D

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

D

Which of the following is an eligible risk under the BOP? A Small amusement park B Manufacturer C Auto repair shop D Fast food restaurant

D

Which of the following is automatically covered under the Businessowners Policy? A Mechanical breakdown of pressure systems and air conditioners B Off-premises power failure C Preservation of property up to 60 days D Signs attached to the building

D

Which statement is false regarding the Businessowners Policy? A Optional coverage for employee dishonesty coverage is available B A motel of 3 stories in height is eligible C Optional coverage for money and securities is available D Most insurance losses are settled on an actual cash value basis

D