Business Owners Policy Flashcards
BOPs are designed for small to medium-sized businesses. Which of the following would be eligible for a BOP? A. A 600 unit apartment building B. A public school C. A small retail store D. A state university
Answer: C. A small retail store
The liability section of a BOP covers A. Auto liability B. Contractual liability C. Personal liability D. Aviation liability
Answer: B. Contractual liability
On a BOP, there is no coverage for: A. Personal injury liability B. Premises liability C. Auto liability D. Products liability
Answer: C. Auto liability
Liability coverage on a BOP is most similar to that found on: A. Homeowners B. Garage liability C. CGL D. Business auto
Answer: C. CGL
Which of the following businesses is NOT eligible for a BOP? A. deli B. drug store C. mercantile D. auto dealer
Answer: D. auto dealer
All of the following are true regarding medical coverage on a BOP EXCEPT:
A. it is included in the BOP contract
B. it is payable regardless of fault or negligence
C. claims must be turned in within 1 year of the accident
D. it covers injury to the named insured and employees
Answer: D.
The standard deductible on a BOP is: A. $500 B. $1,000 C. $250 D. $100
Answer: A. $500
All are true about a BOP EXCEPT:
A. liability coverage is excess over any other insurance that applies
B. advance notice must be sent on cancellation or non-renewal
C. vandalism is not covered after 60 days vacancy
D. 100% coinsurance is required
Answer: D.
All are true about an unendorsed BOP EXCEPT:
A. buildings are covered on a replacement cost basis
B. there is an 80% co-insurance requirement
C. it is named perils
D. Signs attached to the building are covered
Answer: C.
On a BOP, coverage for business personal property is written on what basis? A. stated amount B. Valued C. ACV D. replacement cost
Answer: D. replacement cost
Which of the following is eligible to receive BOP payments for medical expenses in the event of injury at the insured’s premises?
A. the named insured
B. a customer who attended a promotional dinner party
C. A contractor who was hired to perform work for the insured
D. An employee injured while playing basketball for a company-sponsored team
Answer: B.
Business personal property coverage under the BOP includes property of the insured located within \_\_\_ feet of the building described in the declarations A. 500 B. 100 C. 25 D. 50
Answer: B. 100 feet
On the BOP, there is no coverage for theft or vandalism if the building has been vacant for more than \_\_\_ days. A. 120 B. 60 C. 30 D. 90
Answer: B. 60 days
An unendorsed BOP does NOT cover: A. loss of business income B. employee dishonesty C. business liability D. theft
Answer: B. employee dishonesty
Under a BOP, coverage is extended for business personal property while away from the premises in the amount of : A. $2,500 B. $1,000 C. $5,000 D. $10,000
Answer: D. $10,000
