EXAM FX, VA PROPERTY & CASUALTY INSURANCE EXAM LATEST 2024 ACTUAL EXAM 250 QUESTIONS
AND CORRECT DETAILED ANSWERS
The members of a limited liability company are insureds under a businessowners policy (BOP) if -
(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 - (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? - (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? -
(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? - (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? - (answer) 1 year
The most the insurer will pay for a loss under a businessowners policy is - (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? - (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? - (answer) Hired and
nonowned auto liability
,EXAM FX, VA PROPERTY & CASUALTY INSURANCE EXAM LATEST 2024 ACTUAL EXAM 250 QUESTIONS
AND CORRECT DETAILED ANSWERS
Which of the following is an example of a protective safeguard in a businessowners policy? - (answer)
Automatic sprinkler system
A BOP (businessowners policy) is most similar to - (answer) Homeowners.
Jean owns a craft store. The protective safeguards endorsement of her BOP requires the store to have a
functional automatic sprinkler system. A winter storm freezes the pipes to the sprinkler system, causing
the system to shut down. How many hours does Jean have to restore the system before she must notify
her insurer? - (answer) 48 hours
Frank's Steaks furnishes meat to steakhouses. An accident on the premises causes the building to lose
refrigeration for 32 hours. The state inspectors will not allow the meat in the refrigerating units to be
sold for human consumption, and Frank loses $18,500 in disposing of the meat. What coverage under
Frank's BOP policy will cover the loss? - (answer) Utility service - direct damage
Which of the following is eligible for a businessowners policy? - (answer) A 6-story office building with
less than 100,000 square feet total area
In business income additional coverage in a businessowners policy (BOP), the waiting period that must
occur before the period of restoration may begin is - (answer) 72 hours.
Under the additional coverages of a businessowners policy, property removed to protect it from loss will
be covered at another location for up to - (answer) 30 days.
All of the following statements are true regarding employee dishonesty optional coverage under the
businessowners policy (BOP) EXCEPT - (answer) It provides coverage for all employees, even those
employees who were terminated in the past 90 days.
Under a businessowners policy, the inspections and surveys condition specifies all of the following
EXCEPT - (answer) The insurer does not have the right to inspect the insured's property and operations.
When is a hired and nonowned auto liability endorsement available in a businessowners policy (BOP)? -
(answer) Only if the insured does not have commercial auto coverage
,EXAM FX, VA PROPERTY & CASUALTY INSURANCE EXAM LATEST 2024 ACTUAL EXAM 250 QUESTIONS
AND CORRECT DETAILED ANSWERS
In addition to the common policy conditions, all of the following conditions apply to liability coverage
EXCEPT - (answer) Employers liability.
The liability coverage of the businessowners policy is written on a - (answer) Businessowners liability
coverage form.
All of the following would be covered under the medical expense coverage of a businessowners policy
EXCEPT - (answer) Mental health counseling.
A businessowners policy is - (answer) A self-contained prepackaged policy.
Which of the following is defined as a covered cause of loss in businessowners property coverage? -
(answer) Leakage from fire-extinguishing equipment
What is the limit for the forgery or alteration coverage in the businessowners policy? - (answer) $2,500
Which of the following is NOT an optional coverage available in a businessowners policy? - (answer)
Workers compensation
The pollutant cleanup and removal coverage in the businessowners policy has a limit of - (answer)
$10,000 in any 12-month period.
Which of the following limits, shown in the declarations of a policy, applies to medical expenses? -
(answer) Per person
The inspections and surveys condition in a businessowners policy - (answer) Allows the insurer the
right to inspect the insured's premises.
, EXAM FX, VA PROPERTY & CASUALTY INSURANCE EXAM LATEST 2024 ACTUAL EXAM 250 QUESTIONS
AND CORRECT DETAILED ANSWERS
According to businessowners policy Section I, which of the following is NOT a condition to be met for
the terms of the policy to apply to mortgageholders? - (answer) The mortgageholder must petition the
state department of insurance for named status.
Under businessowners policy Section I, if an insurer wants to cancel a policy for any reason except
nonpayment of premium, how many days before the effective cancellation date must the insurer notify
the mortgageholder? - (answer) 30 days
An advertising company has its annual holiday party for employees and customers, after which a
customer who had too much to drink is involved in an automobile accident. Occupants of the other car
involved in the accident sue the company for serving the customer too much alcohol. Will the company's
businessowners policy provide coverage? - (answer) Yes, none of the exclusions will apply.
All of the following statements are true regarding fire department service charge additional coverage
under the businessowners policy EXCEPT - (answer) This coverage limit pays in place of the limit of
insurance shown in the declarations.
Under a businessowners policy, an insured can cancel the policy - (answer) At any time by mailing a
written notice of cancellation.
Utility services - time element covers - (answer) business income or additional expense losses arising
from disruption of service caused by a covered peril.
Which of the following risks is eligible for coverage under a businessowners policy? - (answer)
Condominiums
According to the businessowners policy (BOP) definitions, which of the following does NOT mean
valuable papers and records? - (answer) Securities
A business income coverage form would cover all of the following situations EXCEPT - (answer) A union
strike of construction workers causes the repair of the insured's building to be delayed for a period of
time.
AND CORRECT DETAILED ANSWERS
The members of a limited liability company are insureds under a businessowners policy (BOP) if -
(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 - (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? - (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? -
(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? - (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? - (answer) 1 year
The most the insurer will pay for a loss under a businessowners policy is - (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? - (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? - (answer) Hired and
nonowned auto liability
,EXAM FX, VA PROPERTY & CASUALTY INSURANCE EXAM LATEST 2024 ACTUAL EXAM 250 QUESTIONS
AND CORRECT DETAILED ANSWERS
Which of the following is an example of a protective safeguard in a businessowners policy? - (answer)
Automatic sprinkler system
A BOP (businessowners policy) is most similar to - (answer) Homeowners.
Jean owns a craft store. The protective safeguards endorsement of her BOP requires the store to have a
functional automatic sprinkler system. A winter storm freezes the pipes to the sprinkler system, causing
the system to shut down. How many hours does Jean have to restore the system before she must notify
her insurer? - (answer) 48 hours
Frank's Steaks furnishes meat to steakhouses. An accident on the premises causes the building to lose
refrigeration for 32 hours. The state inspectors will not allow the meat in the refrigerating units to be
sold for human consumption, and Frank loses $18,500 in disposing of the meat. What coverage under
Frank's BOP policy will cover the loss? - (answer) Utility service - direct damage
Which of the following is eligible for a businessowners policy? - (answer) A 6-story office building with
less than 100,000 square feet total area
In business income additional coverage in a businessowners policy (BOP), the waiting period that must
occur before the period of restoration may begin is - (answer) 72 hours.
Under the additional coverages of a businessowners policy, property removed to protect it from loss will
be covered at another location for up to - (answer) 30 days.
All of the following statements are true regarding employee dishonesty optional coverage under the
businessowners policy (BOP) EXCEPT - (answer) It provides coverage for all employees, even those
employees who were terminated in the past 90 days.
Under a businessowners policy, the inspections and surveys condition specifies all of the following
EXCEPT - (answer) The insurer does not have the right to inspect the insured's property and operations.
When is a hired and nonowned auto liability endorsement available in a businessowners policy (BOP)? -
(answer) Only if the insured does not have commercial auto coverage
,EXAM FX, VA PROPERTY & CASUALTY INSURANCE EXAM LATEST 2024 ACTUAL EXAM 250 QUESTIONS
AND CORRECT DETAILED ANSWERS
In addition to the common policy conditions, all of the following conditions apply to liability coverage
EXCEPT - (answer) Employers liability.
The liability coverage of the businessowners policy is written on a - (answer) Businessowners liability
coverage form.
All of the following would be covered under the medical expense coverage of a businessowners policy
EXCEPT - (answer) Mental health counseling.
A businessowners policy is - (answer) A self-contained prepackaged policy.
Which of the following is defined as a covered cause of loss in businessowners property coverage? -
(answer) Leakage from fire-extinguishing equipment
What is the limit for the forgery or alteration coverage in the businessowners policy? - (answer) $2,500
Which of the following is NOT an optional coverage available in a businessowners policy? - (answer)
Workers compensation
The pollutant cleanup and removal coverage in the businessowners policy has a limit of - (answer)
$10,000 in any 12-month period.
Which of the following limits, shown in the declarations of a policy, applies to medical expenses? -
(answer) Per person
The inspections and surveys condition in a businessowners policy - (answer) Allows the insurer the
right to inspect the insured's premises.
, EXAM FX, VA PROPERTY & CASUALTY INSURANCE EXAM LATEST 2024 ACTUAL EXAM 250 QUESTIONS
AND CORRECT DETAILED ANSWERS
According to businessowners policy Section I, which of the following is NOT a condition to be met for
the terms of the policy to apply to mortgageholders? - (answer) The mortgageholder must petition the
state department of insurance for named status.
Under businessowners policy Section I, if an insurer wants to cancel a policy for any reason except
nonpayment of premium, how many days before the effective cancellation date must the insurer notify
the mortgageholder? - (answer) 30 days
An advertising company has its annual holiday party for employees and customers, after which a
customer who had too much to drink is involved in an automobile accident. Occupants of the other car
involved in the accident sue the company for serving the customer too much alcohol. Will the company's
businessowners policy provide coverage? - (answer) Yes, none of the exclusions will apply.
All of the following statements are true regarding fire department service charge additional coverage
under the businessowners policy EXCEPT - (answer) This coverage limit pays in place of the limit of
insurance shown in the declarations.
Under a businessowners policy, an insured can cancel the policy - (answer) At any time by mailing a
written notice of cancellation.
Utility services - time element covers - (answer) business income or additional expense losses arising
from disruption of service caused by a covered peril.
Which of the following risks is eligible for coverage under a businessowners policy? - (answer)
Condominiums
According to the businessowners policy (BOP) definitions, which of the following does NOT mean
valuable papers and records? - (answer) Securities
A business income coverage form would cover all of the following situations EXCEPT - (answer) A union
strike of construction workers causes the repair of the insured's building to be delayed for a period of
time.
