©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
VA Property & Casualty Insurance Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
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
1
,©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
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
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
2
,©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
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.
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.
3
, ©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
After a loss, an insured covered by a business property coverage is NOT required to -
Answer✔Reconstruct for the insurer a timeline of activities leading up to the loss for use in an
investigation.
Under the examinations of books and records condition, the insurance company has the right
to examine and audit the insured's books and records related to the policy - Answer✔During
the policy period and for up to 3 years after the termination of the policy.
Which of the following watercraft will NOT be covered by business liability insurance? -
Answer✔Owned watercraft 53 feet long
Uncle Billy's Burger Bar was forced to close for 10 days in August when the power company's
transformer was destroyed by lightning, and Uncle Billy was without electricity. Which of the
following endorsements could be added to Billy's businessowners policy that would provide
protection against loss of income from such events? - Answer✔Utility services - time element
endorsement
The cancellation provision in a businessowners policy specifies all of the following EXCEPT -
Answer✔The method of transferring the owner's rights.
If the actual values exceed the limit of insurance, the businessowners policy (BOP) contains a
seasonal increase provision that automatically increases the limit of insurance for business
personal property by - Answer✔25%.
In addition to the coverages built into the property coverage form, insurers may offer other
endorsements that can further expand the coverage provided in the policy - Answer✔For an
additional premium.
An endorsement is available for hired and nonowned auto on BOP liability...
A. Only if the insured does not have commercial auto coverage
B. In addition to commercial auto coverage
C. Only if the insured has 4 or more employees
D. Never - Answer✔A
The Mail Coverage Form is always written on a reporting form basis; after the end of each
reporting period shown in the declarations, reports are due within...
A. 45 days
B. 15 days
C. 30 days
D. 31 days - Answer✔C
The inland marine coverage form for outdoor signs provides "open peril" coverage and excludes
coverage for breakage only during...
4
VA Property & Casualty Insurance Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
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
1
,©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
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
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
2
,©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
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.
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.
3
, ©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
After a loss, an insured covered by a business property coverage is NOT required to -
Answer✔Reconstruct for the insurer a timeline of activities leading up to the loss for use in an
investigation.
Under the examinations of books and records condition, the insurance company has the right
to examine and audit the insured's books and records related to the policy - Answer✔During
the policy period and for up to 3 years after the termination of the policy.
Which of the following watercraft will NOT be covered by business liability insurance? -
Answer✔Owned watercraft 53 feet long
Uncle Billy's Burger Bar was forced to close for 10 days in August when the power company's
transformer was destroyed by lightning, and Uncle Billy was without electricity. Which of the
following endorsements could be added to Billy's businessowners policy that would provide
protection against loss of income from such events? - Answer✔Utility services - time element
endorsement
The cancellation provision in a businessowners policy specifies all of the following EXCEPT -
Answer✔The method of transferring the owner's rights.
If the actual values exceed the limit of insurance, the businessowners policy (BOP) contains a
seasonal increase provision that automatically increases the limit of insurance for business
personal property by - Answer✔25%.
In addition to the coverages built into the property coverage form, insurers may offer other
endorsements that can further expand the coverage provided in the policy - Answer✔For an
additional premium.
An endorsement is available for hired and nonowned auto on BOP liability...
A. Only if the insured does not have commercial auto coverage
B. In addition to commercial auto coverage
C. Only if the insured has 4 or more employees
D. Never - Answer✔A
The Mail Coverage Form is always written on a reporting form basis; after the end of each
reporting period shown in the declarations, reports are due within...
A. 45 days
B. 15 days
C. 30 days
D. 31 days - Answer✔C
The inland marine coverage form for outdoor signs provides "open peril" coverage and excludes
coverage for breakage only during...
4
