1
EXAM FX, VA PROPERTY & CASUALTY INSURANCE
EXAM 2025 LATEST ACTUAL EXAM 250 QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS) |
ALREADY GRADED A+ | BRAND NEW VERSION (JUST
RELEASED)
The members of a limited liability company are insureds under a businessowners
policy (BOP) if - (answers)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 - (answers)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? -
(answers)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? - (answers)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? - (answers)The
coinsurance formula would apply
, 2
The businessowners policy liability coverage will pay for necessary medical
expenses of others incurred within what maximum time period? - (answers)1 year
The most the insurer will pay for a loss under a businessowners policy is -
(answers)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? - (answers)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? - (answers)Hired and nonowned auto liability
Which of the following is an example of a protective safeguard in a
businessowners policy? - (answers)Automatic sprinkler system
A BOP (businessowners policy) is most similar to - (answers)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? - (answers)48 hours
, 3
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? - (answers)Utility service - direct damage
Which of the following is eligible for a businessowners policy? - (answers)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 -
(answers)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 - (answers)30
days.
All of the following statements are true regarding employee dishonesty optional
coverage under the businessowners policy (BOP) EXCEPT - (answers)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 - (answers)The insurer does not have the right to inspect
the insured's property and operations.
, 4
When is a hired and nonowned auto liability endorsement available in a
businessowners policy (BOP)? - (answers)Only if the insured does not have
commercial auto coverage
In addition to the common policy conditions, all of the following conditions apply
to liability coverage EXCEPT - (answers)Employers liability.
The liability coverage of the businessowners policy is written on a -
(answers)Businessowners liability coverage form.
All of the following would be covered under the medical expense coverage of a
businessowners policy EXCEPT - (answers)Mental health counseling.
A businessowners policy is - (answers)A self-contained prepackaged policy.
Which of the following is defined as a covered cause of loss in businessowners
property coverage? - (answers)Leakage from fire-extinguishing equipment
What is the limit for the forgery or alteration coverage in the businessowners
policy? - (answers)$2,500
Which of the following is NOT an optional coverage available in a businessowners
policy? - (answers)Workers compensation
EXAM FX, VA PROPERTY & CASUALTY INSURANCE
EXAM 2025 LATEST ACTUAL EXAM 250 QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS) |
ALREADY GRADED A+ | BRAND NEW VERSION (JUST
RELEASED)
The members of a limited liability company are insureds under a businessowners
policy (BOP) if - (answers)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 - (answers)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? -
(answers)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? - (answers)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? - (answers)The
coinsurance formula would apply
, 2
The businessowners policy liability coverage will pay for necessary medical
expenses of others incurred within what maximum time period? - (answers)1 year
The most the insurer will pay for a loss under a businessowners policy is -
(answers)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? - (answers)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? - (answers)Hired and nonowned auto liability
Which of the following is an example of a protective safeguard in a
businessowners policy? - (answers)Automatic sprinkler system
A BOP (businessowners policy) is most similar to - (answers)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? - (answers)48 hours
, 3
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? - (answers)Utility service - direct damage
Which of the following is eligible for a businessowners policy? - (answers)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 -
(answers)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 - (answers)30
days.
All of the following statements are true regarding employee dishonesty optional
coverage under the businessowners policy (BOP) EXCEPT - (answers)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 - (answers)The insurer does not have the right to inspect
the insured's property and operations.
, 4
When is a hired and nonowned auto liability endorsement available in a
businessowners policy (BOP)? - (answers)Only if the insured does not have
commercial auto coverage
In addition to the common policy conditions, all of the following conditions apply
to liability coverage EXCEPT - (answers)Employers liability.
The liability coverage of the businessowners policy is written on a -
(answers)Businessowners liability coverage form.
All of the following would be covered under the medical expense coverage of a
businessowners policy EXCEPT - (answers)Mental health counseling.
A businessowners policy is - (answers)A self-contained prepackaged policy.
Which of the following is defined as a covered cause of loss in businessowners
property coverage? - (answers)Leakage from fire-extinguishing equipment
What is the limit for the forgery or alteration coverage in the businessowners
policy? - (answers)$2,500
Which of the following is NOT an optional coverage available in a businessowners
policy? - (answers)Workers compensation
