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Insurance > unit19 > Flashcards

unit19 Flashcards

1
Q

what’s included in a business owners policy

A

property, liability, and other coverages

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2
Q

BOP requirements

A

• Less than 100 employees
• revenues of $6 million or less
• businesses occupying up to 35,000 sq ft
• owned buildings up to 100,000 sq ft and less than six stories
5. a majority of the operation is located on-premises

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3
Q

BOP includes what two major coverages

A

Coverage A- buildings

B- business personal property

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4
Q

limit of insurance is shown where

A

declarations

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5
Q

Building Coverage

A
  1. completed additions -permanently installed machinery and equipment
  2. Fixtures
  3. Personal property used to maintain or service buildings
  4. Additions
  5. Alterations
  6. Materials - on or pithing 100ft of the premises
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6
Q

five different classes of business personal property covered

A
  1. property owned and used by the insured in the business
  2. property of others in the insured’s care
  3. tenants improvements
  4. leased personal property
  5. exterior building glass
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7
Q

exterior building glass is covered for who

A

tenants who don’t have building coverage

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8
Q

property coverage in the BOP is provided on a what peril basis

A

open peril

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9
Q

for coverage provided on a named peril bases what can be added

A

an endorsement

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10
Q

amount reimbursed for debris removal

A

25% or the amount paid for the direct physical loss plus the deductible

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11
Q

total payment for loss and debris removal

A

25,000

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12
Q

when is collapse of a building covered?

A
  1. building glass breakage
  2. hidden decay
  3. hidden insect damage
  4. weight of people or personal property
  5. weight of rain of snow

this coverage is subject to the limits of insurance. it does not provide an additional amount of insurance

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13
Q

loss of business income additional coverage

A

is not subject to the limits of insurance

payment within 12 consecutive months after the date of the direct physical damage

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14
Q

extra expense coverage

A

allow reimbursement for additional cost incurred to avoid or minimize suspending business operations after a covered loss

this coverage is in addition to the insured’s limits of insurance

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15
Q

increased cost of construction additional coverage applies to what?

what is the coverage limit?

A

buildings insured on a replacement cost basis

10,000

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16
Q

civil authority additional coverage

when does coverage begin?

how long does it last for?

A

covered when civil authorities denies the insured access to the described premises because property not a the described premises was damaged

coverage beings 72hours after the action by the civil authority and if effective for up to four consecutive weeks

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17
Q

forgery and alteration additional coverage total payment

A

2,500 payment for a loss including legal expenses

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18
Q

what is a dependent property

A

A business that delivers, accepts, manufactures or attracts materials or services to or by the insured

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19
Q

what is the coverage limit for the business income from dependent properties coverage

when coverage begins

A

5,000 unless stated higher in declarations

72hours after - repaired

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20
Q

coverage limit for electronic data?

what is electronic data

A

10,000

facts, info, programs

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21
Q

fungi, wet/dry rot and bacteria coverage limit

A

15,000 within 12 months

must occur during the policy period

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22
Q

money orders and counterfeit money limit

A

1,000

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23
Q

pollutant clean up and removal

A

does what the debris removal doesn’t do

limit 10,000 for each 12-month policy

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24
Q

preservation or property

A

covers while temporarily stored to another location for 30 days from the day the property was first moved

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25
Q

fire department service charges

A

standard limit 2,500

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26
Q

water or other liquid

A

does not include flood

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27
Q

glass expenses

A

put up temp plates or board if repair is delayed

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28
Q

fire extinguisher systems recharge expense

A

if discharged on or within 100ft

accidental

5,000 per occurrence

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29
Q

loss caused by a power failure that occurs on the insured’s premises is covered by what policy

A

business owners

Not Covered:

underground water seepage

equipment breakdown

city ordinance tears down building

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30
Q

newly acquired or constructed coverage extension

A

covers new property Buildings for 250,000 each

30 days

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31
Q

business personal property

limit

time frame

A

extended to newly acquired or constructed buildings. for personal property 100,000 at each location

for 30 days after acquisition or construction has begun good until policy expires or until values are reported

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32
Q

coverage extension to property exclusion

limit

A

money, securities, valuable papers, records, accounts

10,000

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33
Q

extended to outdoor property limit

A

2,500

1,000/tree

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34
Q

business personal property coverage extended to personal effects owned by the insured’s officers, partners, or employees limit

A

2,500 at each insured premises

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35
Q

valuable paper and records coverage extension limit

A

10,000

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36
Q

optional coverages have to be what and require what

A

designated in the declarations and require an additional premium

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37
Q

employee dishonesty covered period

A

discovered within one year from the end of the policy period a.k.a. discovery period

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38
Q

definition of object

A
  1. certain boiler and pressure vessels

2. certain types of air-conditioning units

39
Q

limit of insurance is specified where

A

declarations

40
Q

money and securities insured’s as a result of

has to located where

A

theft, disappearance, or destruction

bank, described premises, in transit between any of these places

41
Q

standard deductible for property losses

A

500

42
Q

deductible applies to what

A

mandatory and optional building and business personal property coverages.

not to the fire department, extra expense, business income, civil authority, or fire extinguisher

43
Q

advertising injury

A

hurt feelings

44
Q

requirements to cover injuries and offenses

A

must take place in the coverage territory and occur during the policy period

45
Q

liability coverage

when does it end

A
  1. bodily injury
  2. property damage
  3. personal injury
  4. advertising injury

duty to defend ends when policy limits have been paid

46
Q

supplementary payments

A
  1. expenses the insurance company incurs
  2. up to 250 in bail bond
  3. reasonable expense including 250/day
  4. cost the insured is required to pay because of a lawsuit
  5. prejudgment interest the insured is required to pay
  6. interest that accuses after a judgment and before it is paid

do not reduce the policy limit

47
Q

medical expenses coverage covers

A
  1. first aid when an accident occurs
  2. medical services
  3. funeral services

without regard who is at fault

will pay within one year of the date of accident

48
Q

medical expenses generally not be paid for if

A

insured, employee, can get workers comp, or normally occupies space where injured

49
Q

business liability coverage

A
  1. false arrest
  2. malicious prosecution
  3. wrongful eviction
  4. wrongful entry
  5. invasion
  6. oral or written slander
  7. use of another’s advertising idea
  8. infringement of copyright
50
Q

medical expenses will pay reasonable expenses for first aid, medical services, and funeral services within what time frame?

A

1 year of the date of the accident

51
Q

who is insured under the individual designation under the business owners policy

A

named insured + spouse

52
Q

who is insured under the partnership designation under the business owners policy

A

named insured + named insured’s partners and their spouses

53
Q

who is insured under the limited liability company designation under the business owners policy

A

named insured
members
managers

54
Q

who is insured under the corporation designation under the business owners policy

A

named insured

executive offices and directors

55
Q

other considered insureds under the business owners policy

A

employee or the named insured and if named insured dies the legal representative

56
Q

where are insurance limits documented

A

in the policy’s declarations

57
Q

liability and medical expenses covers:

A

total of all damages that arise out or

  1. bodily injury
  2. property damage
  3. medical expenses
  4. personal injury
  5. advertising injury to one person or organization
58
Q

what two aggregates are two times the limit shown in the declarations

A
  1. injury or damage under the products-completed operations hazard
  2. all other injury, damage, or medical expenses except fire legal liability losses
59
Q

what are common policy conditions

A

conditions that apply to the entire policy

60
Q

what are the two sets of conditions for the property. coverage

A
  1. property general conditions

2. property loss conditions

61
Q

what are liability conditions called

A

liability and medical expenses general conditions

62
Q

what is the utility services - direct damage coverage endorsement

A

covers loss or damage to property caused by an interruption in water, be communication, or power supply service

property must scheduled for coverage on the endorsement and the service

63
Q

what does the utility services - time element coverage endorsement cover

A

pays for loss of business income or extra expenses if damage is outside the covered building

64
Q

what is the protective safeguards endorsement

A

requires insured to maintain protective devices or services listed on the endorsement as a condition of the policy

otherwise:
payment not made by insurers if fire damage or burglary e losses occur or insurer wasn’t notifies within 48hrs of device not working

65
Q

hired auto and non owned auto liability endorsement available when

A

the insured business doesn’t have commercial auto insurance

66
Q

there are two sets of conditions that apply to every policy for property coverage. what are they

A
  1. property general conditions

2. the property loss conditions

67
Q

in addition to max floor space of 35,000, the business owners eligibility rules limit eligible risks to max of

A

6 million in annual sales

68
Q

the largest building risk that may be eligible for a business owners policy is

A

6 stories and 100,000 sq ft

69
Q

what is covered in Coverage B - business personal property

A
  1. exterior building glass,
  2. tenant improvements (permanently installed),
  3. personal leases property

accounts receivable and Land is excluded

70
Q

limit of coverage for valuable papers and records

A

10,000

71
Q

medical payments of BOP does not cover what

A

medical expenses arising out of automobile accidents

72
Q

BOP provides liability protection for

A

damages because of bodily injury, property damage, personal injury or advertising injury

73
Q

fire dept. limit

A

2,500

74
Q

limit for cost of construction

A

10,000

75
Q

business owners liability coverage includes what

A

personal and advertising injury

76
Q

mechanical breakdown is covered if what

A

adds this as an optional coverage and usually requires an additional premium

77
Q

tree and detached signs are what kind of coverage

A

extension not an additional coverage

78
Q

business income pays for what

A

loss of business revenues if it has been caused by a covered loss.

79
Q

BOP additional coverages - automatically included

A
  1. debris removal 25%, 25,000 total
  2. collapse
  3. loss of business income
  4. extra expense
  5. increased cost of construction
  6. action of civil authority
  7. forgery or alteration 2,500
  8. business income from dependent properties 5,000
  9. electronic data 10,000
  10. fungi, wet rot, dry rot, and bacteria 15,000/policy
  11. money orders counterfeit money 1,000
  12. pollutant cleanup 10,000/policy
  13. preservation or property 30 days
  14. fire department service charge 2,500
  15. water or other liquid
  16. glass
  17. fire extinguisher 5,000/occurrence
80
Q

coverage extensions

A
  1. newly acquired
    - buildings 30 days, 250,000
    -personal property 30 days, 100,000
  2. trees and detached signs
    -max 2,500
    -max/tree 1,000
  3. personal pro of others-2,500
  4. valuable papers and records
    10,000

NTPV

81
Q

optional coverages - additional premium

A
  1. employee dishonesty
  2. mechanical breakdown
  3. outdoor signs
  4. money and securities

ENOM

82
Q

optional coverages - standard deductible

A

base deductible applies to all building and personal property

83
Q

limit for valuable papers at prescribed premises

limit for valuable papers not at prescribed premises

A

10,000

5,000

84
Q

BOP coverage B personal property excludes what

A

customers property

85
Q

property coverage in the unendorsed BOP is provided on what type of basis

A

open perils (special form)

86
Q

bodily injury coverage applies if

A

the owner is negligent

87
Q

the liability section of the BOP excludes coverage for what

A

employer’s liability because it’s better covered by worker’s compensation

88
Q

limit on loss of earnings

A

250/day

89
Q

medical expenses vs medical payments and personal injury

A

medical expenses- accident

(medical payments and personal injury)- negligence

90
Q

the standard deductible for the business owners policy applies to what?

how much is it?

A

civil commotion.

standard deductible for the BOP is $500

91
Q

a base deductible applies to what

A

all the building and business personal property coverages including mandatory and optional coverages

92
Q

no deductible applies to what

A
  1. fire department service charge,
  2. extra expense,
  3. business income,
  4. civil authority, and
  5. fire extinguisher systems recharge expense
93
Q

when is an additional 25,000 available

A
  1. the direct physical loss and debris removal expense together exhaust the limit of insurance
  2. the max amount collectible for debris removal ( 25% of the loss plus the deductible ) is not enough to cover the debris removal expense

Insurance (16 decks)

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