Business Owners Policy Test Flashcards
The Businessowners Policy - Unit Test Question The largest office building risk that may be eligible for a businessowners policy is 1: 6 stories and 75,000 square feet 2: 6 stories and 100,000 square feet 3: 3 stories and 75,000 square feet 4: 3 stories and 50,000 square feet
1: wrong
2 is correct
Office buildings that are no more than 6 stories high and contain no more than 100,000 square feet are eligible for the businessowners policy.
The Businessowners Policy - Unit Test Question In addition to maximum floor space, the businessowners eligibility rules limit eligible risks to a maximum of 1: $3 million in annual sales 2: $1.5 million in annual sales 3: $750,000 in annual sales 4: $5 million in annual sales
Certain types of wholesale, processing, and service businesses are eligible for the BOP as long as gross annual sales do not exceed $3 million.
The Businessowners Policy - Unit Test
Question
Under the additional coverages of the businessowners property coverage, property removed to protect it from loss will be covered at another location for up to
1: 10 days 2: 30 days 3: 5 days 4: 20 days
A: 30 days
The preservation of property additional coverage covers loss from any cause of loss to property that was removed from the insured location to protect it from damage by a covered peril. Coverage applies for up to 30 days after the property is first moved.
The Businessowners Policy - Unit Test Question The standard deductible for the BOP property coverage is $500 $1,000 $100 $250
The standard deductible is $500.
Mechanical breakdown coverage is: not available in a BOP available only by endorsement automatically provided in a BOP an optional BOP coverage that is activated by an entry in the declarations
Optional coverages are usually preprinted in the policy but apply only if they are designated in the declarations.
Which one of the following coverages is NOT included in the businessowners policy?
Medical expense Property damage liability Bodily injury liability Professional liability
The businessowners liability coverage includes the following coverages: BI liability, PD liability, personal and advertising injury liability, and medical expense.
The Businessowners Policy - Unit Test
Question
Which of the following would be covered under the building coverage of the businessowners policy?
1: Restroom fixtures
2: An enclosure around the front entry to a store that the insured tenant had built when the tenant began leasing the building
3: Furnishings in the insured’s private office
4: Photocopy machines
Property owned and used by the insured in the business, such as photocopy machines and furnishings in the insured’s private office, would be covered under business personal property coverage. Tenants’ improvements and betterments are also covered under business personal property coverage.
The Businessowners Policy - Unit Test
Question
Which one of the following coverages is NOT included in the businessowners policy?
Professional liability Bodily injury liability Property damage liability Medical expense
a: professional liability
The businessowners liability coverage includes the following coverages:
1: BI liability,
2: PD liability, personal and advertising injury liability, and 3: 3: medical expense.
The Businessowners Policy - Unit Test
Question
Which of the following would be covered under the building coverage of the businessowners policy?
1: Photocopy machines 2: Furnishings in the insured's private office 3: An enclosure around the front entry to a store that the insured tenant had built when the tenant began leasing the building 4: Restroom fixtures
4: Restroom fixtures
Property owned and used by the insured in the business, such as photocopy machines and furnishings in the insured’s private office, would be covered under business Personal Property owned and used by the insured in the business, such as photocopy machines and furnishings in the insured’s private office, would be covered under business personal property coverage.
Tenants’ improvements and betterments are also covered under Business Personal Property coverage.
The Businessowners Policy - Unit Test
Question
Which of the following would be covered under the business personal property coverage of the businessowners policy?
Fire extinguishers located at various places on the inside walls of the building Carpets and floor tiles Cans of paint that are stacked near a newly constructed outer wall prior to painting the wall Desks, filing cabinets, and other office equipment the insured uses in her business
a: Desks, filing cabinets, and other office equipment the insured uses in her business
Property owned and used by the insured in the business is covered under business personal property coverage. This includes desks, filing cabinets, and other office equipment.
Permanently installed items, like carpets and floor tiles, and materials that are on or within 100 feet of the premises being used for alterations, such as the cans of paint in that answer choice, are covered under Building coverage.
Personal property owned and used by the insured to maintain or service the building, including fire extinguishers, is also covered under Building coverage.
The Businessowners Policy - Unit Test
Question
Which one of the following is covered under businessowners liability coverage?
Damages the insured causes intentionally Pollution losses caused by the insured Liquor liability for those in the business of serving liquor Liability assumed under an insured contract
Liability assumed under an insured contract
The exclusion for liability assumed under contract has some exceptions. One is liability assumed under an insured contract.
The Businessowners Policy - Unit Test
Question
Which of the following losses would be excluded under the property coverage of the BOP?
1: Pianos in an insured’s warehouse were damaged by dryness during an extremely cold winter. 2: Termites damaged an insured’s building. 3: An angry employee vandalized an insured’s building. 4: ALL of the these.
4: all of these
All of these losses would be excluded under the businessowners property coverage.
Which of the following are NOT excluded under businessowners liability coverage?
1: Liability assumed under an insured contract 2: Damages the insured causes intentionally 3: Pollution losses caused by the insured 4: Liquor liability for those in the business of serving liquor
guess: 2…Wrong
The exclusion for liability assumed under contract has some exceptions. One is liability assumed under an insured contract.
