AINS 23 Assignment 10 SMART Practice
Exam
Which one of the following best describes the process for rating business income and any additional
coverages that are automatically included in the businessowners policy (BOP)?
a. BOP property rates include loadings (built-in-charges) for these coverages.
b. BOP manuals include a specific additional premium amount for each additional coverage.
c. Rates are computed separately for each and then added to the base rate.
d. These coverages are usually provided at no additional premium. - Answer-a. BOP property rates
include loadings (built-in-charges) for these coverages.
Which one of the following types of business is usually eligible for coverage under a BOP?
a. Automobile dealership
b. Savings and loan institution
c. Apartment building
d. Amusement park - Answer-c. Apartment building
BOP eligibility rules are based on:
a. The applicant's loss history
b. The applicant's credit score
, c. The fire protection class where the building is located
d. Criteria that relate to business size and complexity of loss exposures - Answer-d. Criteria that relate
to business size and complexity of loss exposures
Which one of following statements best describes the rating process used with BOPs?
a. As the eligibility rules for BOPs were broadened, some insurers began using judgement rating for
some classes.
b. Rating a BOP is actually more complicated than rating comparable coverages in a commercial package
policy.
c. BOP rating is not as complicated as the rating for a commercial package policy.
d. Originally, BOP rates were based on square footage. - Answer-c. BOP rating is not as complicated as
the rating for a commercial package policy.
Which one of the following statements is correct with respect to eligibility for coverage under a BOP?
a. Eligible risks must exceed 50,000 square feet in total area or $8 million in annual gross sales at each
location.
b. Some insurers have expanded the eligibility for their BOP programs to include restaurants and
contractors.
c. Insurers consider most manufacturing businesses as being eligible for their BOP programs.
d. Every insurer that writes businessowners insurance uses the same eligibility rules to define the types
of businesses that it will accept. - Answer-b. Some insurers have expanded the eligibility for their BOP
programs to include restaurants and contractors.
Which one of the following types of risks generally would be eligible for the BOP program?
a. A bar
b. An automobile business
c. A bank
d. A clothing store - Answer-d. A clothing store
Exam
Which one of the following best describes the process for rating business income and any additional
coverages that are automatically included in the businessowners policy (BOP)?
a. BOP property rates include loadings (built-in-charges) for these coverages.
b. BOP manuals include a specific additional premium amount for each additional coverage.
c. Rates are computed separately for each and then added to the base rate.
d. These coverages are usually provided at no additional premium. - Answer-a. BOP property rates
include loadings (built-in-charges) for these coverages.
Which one of the following types of business is usually eligible for coverage under a BOP?
a. Automobile dealership
b. Savings and loan institution
c. Apartment building
d. Amusement park - Answer-c. Apartment building
BOP eligibility rules are based on:
a. The applicant's loss history
b. The applicant's credit score
, c. The fire protection class where the building is located
d. Criteria that relate to business size and complexity of loss exposures - Answer-d. Criteria that relate
to business size and complexity of loss exposures
Which one of following statements best describes the rating process used with BOPs?
a. As the eligibility rules for BOPs were broadened, some insurers began using judgement rating for
some classes.
b. Rating a BOP is actually more complicated than rating comparable coverages in a commercial package
policy.
c. BOP rating is not as complicated as the rating for a commercial package policy.
d. Originally, BOP rates were based on square footage. - Answer-c. BOP rating is not as complicated as
the rating for a commercial package policy.
Which one of the following statements is correct with respect to eligibility for coverage under a BOP?
a. Eligible risks must exceed 50,000 square feet in total area or $8 million in annual gross sales at each
location.
b. Some insurers have expanded the eligibility for their BOP programs to include restaurants and
contractors.
c. Insurers consider most manufacturing businesses as being eligible for their BOP programs.
d. Every insurer that writes businessowners insurance uses the same eligibility rules to define the types
of businesses that it will accept. - Answer-b. Some insurers have expanded the eligibility for their BOP
programs to include restaurants and contractors.
Which one of the following types of risks generally would be eligible for the BOP program?
a. A bar
b. An automobile business
c. A bank
d. A clothing store - Answer-d. A clothing store
