FLETC BOP FINAL UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

FLETC BOP FINAL UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS

⩥ Which of the following coverages is not suitable for combination with
other coverage forms under a single businessowners policy?
Answer: - inland marine
- crime
- liability
C - workers compensation (A single BOP combines coverages that might
otherwise be written on separate property, liability, crime, and inland
marine forms).


⩥ According to Insurance Services Office, Inc. (ISO), rules, which one
of the following businesses would be eligible for coverage under a
businessowners policy (BOP)?
Answer: - Granite Bank
C - White Star Convenience Store (A convenience store is eligible for a
BOP, but a manufacturer, a bar, and a bank are not).
- Slim's Bar and Grill
- Quality Manufacturing Company


⩥ Laurie's businessowners insurance application merely indicates that
she wants coverage on her storefront business. Laurie's storefront
business is probably eligible for coverage unless it is a(n)

,Answer: C - arcade with pinball machines and video games (Places of
amusement are ineligible regardless of their size).
- retail store selling low-priced consumer products
- wholesale store selling beauty supplies
- restaurant that serves no alcoholic beverages


⩥ In an Insurance Services Office, Inc. (ISO), businessowners policy,
where do the definitions appear?
Answer: - Attached endorsement titled "Definitions"
C - End of the property section and end of the liability section
(Definitions of terms used in each coverage section of the policy appear
at the end of the property section and at the end of the liability section,
respectively).
- Beginning of the policy
- End of the policy


⩥ Section III of a businessowners policy (BOP) contains common policy
conditions. What do Sections I and II provide?
Answer: C - property and liability coverage (The other two sections are
Section I-Property and Section II-Liability).
- building and contents coverage
- on-premises and off-premises coverage
- liability and medical payments coverage

,⩥ A businessowners policy combines coverages that might otherwise be
written on all the following types of forms EXCEPT:
Answer: - inland marine
- crime
- liability
C - workers compensation (A single BOP combines coverages that might
otherwise be written on separate property, liability, crime, and inland
marine forms).


⩥ Whose needs are businessowners policies designed to meet?
Answer: C - Small to medium-sized businesses with no unusual
exposures or needs (The businessowners policy is designed to meet the
needs of a typical small to medium-sized business that has exposures
and coverage needs common to other businesses of the same type).
- Businesses that are too large for a commercial package policy
- Home-based businesses of certain specific types
- Businesses that are too small for a homeowners policy with a HOBIZ
endorsement


⩥ Only certain types of businesses are eligible for a businessowners
policy (BOP). According to Insurance Services Office, Inc. (ISO) rules,
BOP eligibility is based on which of the following characteristics of a
business?
Answer: - Geographical location
- Financial reports

, - Past loss experience
C - Size and type (BOP eligibility is based on the size and type of
business that is to be insured).


⩥ According to the Insurance Services Office, Inc. (ISO),
businessowners policy (BOP) eligibility rules, what type of business is
ineligible for a BOP regardless of its size?
Answer: - Restaurant
C - Parking garage (According to ISO rules, parking lots or garages are
ineligible for a BOP regardless of their size).
- Motel
- Wholesaler


⩥ Rebecca insures her office building on a building and personal
property form. All of the following items can be covered as building
items EXCEPT:
Answer: - elevator
C - stock and inventory (Rebecca's stock and inventory are personal
property).
- indoor and outdoor fixtures
- personal property used to service the premises