Exam FX, VA Property & Casualty Insurance Exam| 303 Questions| With Complete Solutions

The members of a limited liability company are insureds under a businessowners policy (BOP) if correct answer: The limited liability company is designated as the named insured. An endorsement added to a businessowners policy that provides coverage for direct damage caused by utility service disruption stemming from a covered peril is called correct answer: Utility Services - Direct Damage. Which of the following would be the insured's duty in the event of a loss according to the duties in event of occurrence, claim, or suit condition? correct answer: Providing specific details regarding an occurrence Which common policy condition prohibits the insured from changing the rights or duties as defined under the policy to any other person or entity without the written consent of the insurance company? correct answer: Transfer of rights and duties under the policy A company has a businessowners policy on a building with an estimated replacement cost of $300,000. The company carries $150,000 of insurance. If a loss occurs, how much will the insured company be paid? correct answer: The coinsurance formula would apply The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period? correct answer: 1 year The most the insurer will pay for a loss under a businessowners policy is correct answer: The limit of insurance after the deductible is paid. Which of the following is NOT settled on an actual cash value basis while covered under the business property coverage form? correct answer: Valuable papers and records Which endorsement adds coverage for employee use of automobiles in the insured's business and the insured's use of rented autos if no coverage is provided on a business auto policy? correct answer: Hired and nonowned auto liability Which of the following is an example of a protective safeguard in a businessowners policy? correct answer: Automati