*TB - Commercial Package & The Businessowners Policy Flashcards
All of the following are exclusions under the standard BOP form, except:
Governmental Action
Building Ordinance
Earth Movement
Transportation
Transportation
The BOP is designed to cover all of the following, except:
Gas Stations
Small Apartment Houses
Medium size clothing stores
An office complex with 7,500 square feet in total floor area
Gas Stations
The Now Company carries a special BoP policy with a liability limit of $500,000. The company is involved in an occurrence causing $200,000 bodily injury damage and $200,000 property damage. The total amount payable as damages under the policy is:
$100,000
$200,000
$400,000
$500,000
$400,000
The BOP policy form does not cover:
Personal Property of the Insured
Debris Removal
Cracking of a steam boiler
Personal property of others
Cracking of a steam boiler
Business owners policies provide “Preservation of Property” coverage when property is removed from the premises to protect it from a covered cause of loss. The coverage will apply at other locations for up to:
10 days
30 days
20 days
60 days
30 days
An apartment Building may be covered by Business Policy (BOP) if it does not have more than:
15,000 square feet
10,000 square feet
35,000 square feet
30,000 square feet
$35,000 square feet
Under the BOP, how much is paid for pollution clean-up and Remival in case of a covered loss?
$10,000
Any amount that does not exceed the limit of the policy
25% of the loss
Not covered
$10,000
Under the BOP, up to how many years can the insurer request the insured’s books and records?
Four years
Two years
Three Years
Five Years
Three Years
Under the BOP, what does the hired and non -owned auto liability endorsement cover?
Hired and Non-Owned auto coverage of the insured is not covered by a commercial auto policy
Owned autos that are excluded by a commercial auto policy
Primary coverage for an employee using their car on company business
Excess premises liability coverage for mobile equipment
Hired and Non-Owned auto coverage of the insured is not covered by a commercial auto policy
An insured is covered under a BOP policy and has a piece of equipment insured separately under a floater policy. In case of a loss, what coverage will apply under the BOP policy?
It policy will pay its fair percentage of loss
The BOP will be excess over the floater policy
The loss is completely covered under the BOP
The loss is not covered under the BOP because it is desperately insured
The BOP will be excess over the floater policy
Under the BOP, which type of business would not normally be eligible for coverage?
A shoe store
A hair salon
A small manufacturer
A doctors office
A small manufacturer
The insured is covered under a BOP and sustains a direct loss to his building and contents. What is the period of time the policy provides loss of income and extra expense coverage?
The policy pays for up to 12 months
The policy pays for up to 6 months
The policy pays for up to 9 months
The policy pays for up to 14 months
The policy pays for up to 12 months
The BOP contains liability coverage for the insured’s business. On what basis is the coverage written?
Claims made form
Occurrence form
Modified claims made form
No aggregate limit basis
Occurrence form
The insured carries the “open peril” BOP policy. On a weekend thieves enter the building and steal all of the merchandise in the store. What coverages would apply?
The loss cause by the burglary would not be covered
The loss by burglary and loss of income would apply
The loss of income would not apply
My he entire loss would be denied by the insurer
The loss by burglary and loss of income would apply
The insured’s building is protected by a sprinkler system. The system develops a problem and is inoperative. When does the insured have to report to the company the fact that the system does not work?
Immediately
After 24 hours
After 48 hours
After 60 hours
After 48 hours
