NJ PSI PROPERTY AND CASUALTY PRACTICE EXAM | QUESTION
AND ANSWERS | VERIFIED AND WELL DETAILED ANSWERS |
LATEST EXAM UPDATE
What is a Business Owners Policy (BOP)? - CORRECT ANSWER -They usually
are targeted at small and medium-sized businesses. This assembles the basic
coverages required by a business owner in one bundle.
What are the features of a BOP Policy? - CORRECT ANSWER -Property
Liability, Business Income, and General Liability
What is the method of valuation on building and business personal property? -
CORRECT ANSWER -Replacement Cost / 80% or more of the full replacement
cost of the property
How long is the "Period of Restoration" following a covered direct loss? -
CORRECT ANSWER -12 Consecutive Months, Restoration begins 72 hours after
the time of direct physical loss & ends when the task is completed or business
starts at a new permanent location
What makes a business BOP eligible? - CORRECT ANSWER -Business has to
generate sales over $6million or that occupy more than 35,000 square feet of space
What types of Businesses are BOP Eligible? - CORRECT ANSWER -Apartment
buildings, office buildings (6 stories or lower/ 100.000 sq ft.), Service, Processing,
Wholesaler, Contractor, Restaurant (Fast Food), Motel (3 Stories or lower),
Convenience Store/Gasoline Store, Self Storage
,What type of Businesses are not BOP Eligible? - CORRECT ANSWER -Auto
Repair/Service Station, Restaurant (Not Fast Food), Place of Amusement,
Manufacturers
What is covered in Section 1 of the BOP? - CORRECT ANSWER -Buildings &
Structures at the premises described in the dec, business personal property located
in or on the building at the described premises or in the open (or vehicle) within
100 ft of the premises, leased personal property
What is the ISO? - CORRECT ANSWER -Insurance Service Office - Provides
rating services by filling out an ISO Form
What are some coverage extensions in the BOP? - CORRECT ANSWER -Newly
acquired/Constructed Property, Personal Property off Premises, Outdoor Property,
Personal Effects, Valuable Paper & Records, Accounts Receivable, Exclusions
What is Business Income Extra Expense? - CORRECT ANSWER -Loss of
income and continuing expenses
What are Additional Expenses? - CORRECT ANSWER -Any expense needed to
not allow business income loss (Example - Extra Space)
What is Liability? - CORRECT ANSWER -Bodily Injury & Property Damage
through a 3rd party
What is Advertising Liability? - CORRECT ANSWER -Publisher, getting sued
for writing something (Slander, Defamation of Character, Ruin Someone)
, What is Products Liability? - CORRECT ANSWER -Bodily injury and property
damage from your product
What is Product Completed Operations? - CORRECT ANSWER -Completed Job
and someone gets injured
What is Medical Expense? - CORRECT ANSWER -Good will coverage, bodily
injury (Whether or not legally liable), To avoid small claims and lawsuits
What makes you Dwelling Program Eligible? - CORRECT ANSWER -Has to
have Residential dwelling purposes & can't have more than 4 dwelling units or
more than 5 roomers or boarders
What are the dwelling coverage forms? - CORRECT ANSWER -DP1 (Basic) ,
DP2 (Broad), and DP3 (Special)
What are the covered perils under a DP1? - CORRECT ANSWER -Fire,
lightning, explosion, wind & hail, smoke, aircraft, riot & looting, vandalism,
sprinkler leakage, sinkhole collapse, volcano/lava
What is the valuation on a DP1? - CORRECT ANSWER -Covers losses at Actual
Cash Value (ACV)
What are the covered perils under a DP2? - CORRECT ANSWER -Fire,
Lightning, Internal & External Explosion, Windstorm & Hail, Civil Commotion,
Smoke, Aircraft & Vehicles, Volcanic Eruption, Riot, Vandalism & Malicious
Mischief, Burglary Damage, Weight of Ice & Snow, Glass Breakage, Accidental
AND ANSWERS | VERIFIED AND WELL DETAILED ANSWERS |
LATEST EXAM UPDATE
What is a Business Owners Policy (BOP)? - CORRECT ANSWER -They usually
are targeted at small and medium-sized businesses. This assembles the basic
coverages required by a business owner in one bundle.
What are the features of a BOP Policy? - CORRECT ANSWER -Property
Liability, Business Income, and General Liability
What is the method of valuation on building and business personal property? -
CORRECT ANSWER -Replacement Cost / 80% or more of the full replacement
cost of the property
How long is the "Period of Restoration" following a covered direct loss? -
CORRECT ANSWER -12 Consecutive Months, Restoration begins 72 hours after
the time of direct physical loss & ends when the task is completed or business
starts at a new permanent location
What makes a business BOP eligible? - CORRECT ANSWER -Business has to
generate sales over $6million or that occupy more than 35,000 square feet of space
What types of Businesses are BOP Eligible? - CORRECT ANSWER -Apartment
buildings, office buildings (6 stories or lower/ 100.000 sq ft.), Service, Processing,
Wholesaler, Contractor, Restaurant (Fast Food), Motel (3 Stories or lower),
Convenience Store/Gasoline Store, Self Storage
,What type of Businesses are not BOP Eligible? - CORRECT ANSWER -Auto
Repair/Service Station, Restaurant (Not Fast Food), Place of Amusement,
Manufacturers
What is covered in Section 1 of the BOP? - CORRECT ANSWER -Buildings &
Structures at the premises described in the dec, business personal property located
in or on the building at the described premises or in the open (or vehicle) within
100 ft of the premises, leased personal property
What is the ISO? - CORRECT ANSWER -Insurance Service Office - Provides
rating services by filling out an ISO Form
What are some coverage extensions in the BOP? - CORRECT ANSWER -Newly
acquired/Constructed Property, Personal Property off Premises, Outdoor Property,
Personal Effects, Valuable Paper & Records, Accounts Receivable, Exclusions
What is Business Income Extra Expense? - CORRECT ANSWER -Loss of
income and continuing expenses
What are Additional Expenses? - CORRECT ANSWER -Any expense needed to
not allow business income loss (Example - Extra Space)
What is Liability? - CORRECT ANSWER -Bodily Injury & Property Damage
through a 3rd party
What is Advertising Liability? - CORRECT ANSWER -Publisher, getting sued
for writing something (Slander, Defamation of Character, Ruin Someone)
, What is Products Liability? - CORRECT ANSWER -Bodily injury and property
damage from your product
What is Product Completed Operations? - CORRECT ANSWER -Completed Job
and someone gets injured
What is Medical Expense? - CORRECT ANSWER -Good will coverage, bodily
injury (Whether or not legally liable), To avoid small claims and lawsuits
What makes you Dwelling Program Eligible? - CORRECT ANSWER -Has to
have Residential dwelling purposes & can't have more than 4 dwelling units or
more than 5 roomers or boarders
What are the dwelling coverage forms? - CORRECT ANSWER -DP1 (Basic) ,
DP2 (Broad), and DP3 (Special)
What are the covered perils under a DP1? - CORRECT ANSWER -Fire,
lightning, explosion, wind & hail, smoke, aircraft, riot & looting, vandalism,
sprinkler leakage, sinkhole collapse, volcano/lava
What is the valuation on a DP1? - CORRECT ANSWER -Covers losses at Actual
Cash Value (ACV)
What are the covered perils under a DP2? - CORRECT ANSWER -Fire,
Lightning, Internal & External Explosion, Windstorm & Hail, Civil Commotion,
Smoke, Aircraft & Vehicles, Volcanic Eruption, Riot, Vandalism & Malicious
Mischief, Burglary Damage, Weight of Ice & Snow, Glass Breakage, Accidental
