1A BOP Intro

Question 1

Package Policy

Answer 1

provides property & liability coverages

Question 2

Apartment Buildings

Answer 2

residential condo:

may provide coverage for “incidental occupancy” for offices & certain wholesale/retail

Question 3

Office Buildings

Answer 3

office condo:

< 6 stories; < 100m ft2; reverse incidental for < 25m residential occupancy

Question 4

Other Buildings

Answer 4

retail/wholesale:

< 25m ft2

Question 5

Wholesale Risks

Answer 5

< 25% floor space is retail & < 25% sales from retails sales

Question 6

Typical Wholesale

Answer 6

DISTRIBUTORS: auto parts, baked goods distributors (no baking), grocery distributors

Question 7

Typical Retail

Answer 7

bakery (w baking), barber shop, dental lab, funeral home, laundry, mail, printing, shoe repair

Question 8

Limited Cooking

Answer 8

microwave or convection (ie sandwich shop); no deep fat fryers

Question 9

Fast Food

Answer 9

deep fat included

Question 10

Limited Cooking & Fast Food Examples

Answer 10

cafes, buffets, coffee shops, delis, doughnut shops, ice cream shops, pizza, take-out

Question 11

Food/Convenience Stores

Answer 11

Gas sales < 75% of sale & no auto repair, car wash, propane filling

Question 12

Not Eligible for BOP

Answer 12

auto repair, auto dealers, bars, houses, parking garages

Question 13

Motels

Answer 13

< 3 stories

Question 14

Self Storage

Answer 14

< 2 stories

Question 15

Contractor INELIGIBLE Factors

Answer 15

Payroll > $300m; Sales > $3mm, Heavy Construction, Manufacturing, Ship Repair, Hazardous Abatement, GCs, Subcontracted work > 10% of sales

Question 16

Eligible Trades

Answer 16

Carpentry, Concrete, Fencing, Furniture installation, Landscape Gardening, etc.

Question 17

BOP are excess loss contracts

Answer 17

true

Question 18

Subrogation

Answer 18

if insurer pays on loss, insured transfers rights to recovery up to amount of payment