FX, VA Property & Casualty Insurance Exam(Questions & Answers) Rated 100% Correct!!

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? - AnswerHired and nonowned auto liabilityWhich of the following is an example of a protective safeguard in a businessowners policy? - AnswerAutomatic 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 day