BOP Insurance Exam Questions and Correct Answers Already Passed
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BOP Insurance
Institution
BOP Insurance
BOP Insurance Exam Questions and Correct Answers Already Passed
Business personal property coverage under the BOP includes property of the insured located within _____ feet of the building described in the declarations. - Answer- Answer: 100
Explanation:
Business personal property located in or...
BOP Insurance Exam Questions
and Correct Answers Already
Passed
Business personal property coverage under the BOP includes property of the insured
located within _____ feet of the building described in the declarations. - Answer-
Answer: 100
Explanation:
Business personal property located in or on the buildings at the described premises or
in the open (or in a vehicle) within 100 feet of the described premises is covered by a
BOP.
Which of the following is eligible to receive BOP payments for medical expenses in the
event of injury at the insured's premises? - Answer- Answer: A customer who attended
a promotional dinner party
Explanation:
Medical coverage on a BOP is very similar to medical on other liability policies.
Coverage is to others, but injury to employees is excluded since that is covered by
workers' compensation.
On a commercial building and personal property form, the insured receives certain
extensions of coverage at no additional premium charge if 80% or more coinsurance is
carried. Included in these extensions are all of the following EXCEPT: - Answer-
Answer: Debris removal
Explanation:
Note the difference between additional coverages and extensions of coverage. Certain
extensions are granted at no charge if the insured carries at least 80% coinsurance.
However, debris removal is an additional coverage present in the policy regardless of
the amount of coinsurance selected. Coverage for debris removal is limited to 25% of
the amount the insurer paid for the direct loss incurred.
On a CPP, the common policy declarations states all EXCEPT: - Answer- Answer: A list
of all covered cause of loss
The ones that are true: A schedule of coverage parts and premiums for each, The policy
period, The named insured and type of business
Explanation:
, In the property section of a CPP, the covered perils would be stated in the cause of loss
form the insured elected to purchase (basic, broad or special).
The basis for all commercial property insurance sold in this state is the: - Answer-
Answer: Standard fire policy
Explanation:
The basis for all property (fire) insurance sold in this state is the 165 line standard fire
policy. Its language is incorporated into dwelling property policies, HO policies and
commercial property policies. First sold in the state of New York in 1943, the standard
fire policy is never sold all by itself. Certain endorsements must always be added, such
as the extended coverage endorsement.
A commercial property condition that automatically provides broader coverage when the
insurer makes revisions to a current policy edition without charging an additional
premium is the: - Answer- Answer: Liberalization clause
Explanation:
The liberalization clause allows the insurer to broaden coverage as long as there is no
additional premium charge. Remember, the insurer may not change a policy mid-term
without the consent of the insured, unless it for the better and it is free.
On the commercial building and personal property form, all are true about the deductible
EXCEPT: - Answer- Answer: The deductible applies per occurrence and per building, if
more than 1 building is covered on the policy
Explanation:
If you had blanket coverage covering multiple buildings at one location, only one
deductible would apply per occurrence no matter how many buildings were damaged.
Insureds often add the optional commercial glass coverage form to their CPP for all of
the following reasons EXCEPT: - Answer- Answer: This optional endorsement is
provided at no extra premium charge
True: The basic cause of loss form does not cover glass windows, The broad cause of
loss form limits glass coverage to $100 per pane and $500 per occurrence, The special
cause of loss form contains the same limits as broad form
Explanation:
Commercial glass coverage may be added for an additional premium.
All of the following are true about business income coverage EXCEPT: - Answer-
Answer: It is written with a deductible
Explanation:
Business income insurance is purchased by businesses than must shut down if damage
occurs due to a covered peril. It is considered to be an indirect or consequential type
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