Property and Casualty Exam 303 Questions with Verified
Answers
The Business owners Policy, or BOP, is a ____ policy that can be used to cover
most small low _____. - CORRECT ANSWER Prepackaged, Low risk
One of the advantages of the BOP is that it is ____, which means that many of the
coverage questions have been predetermined by the insurance company which
lowers the _____. - CORRECT ANSWER Prepackaged, Premium
The BOP automatically includes both ____ coverage's and ____ coverage's. -
CORRECT ANSWER Property and Liability
Eligible for a BOP are small to medium _____ businesses. - CORRECT ANSWER Low
risk
Ineligible for a BOP are high risk businesses, such as auto repair businesses, auto
service stations, auto dealers, parking garages, ____,_____,____ or ______ (no
Cars, Bars, Banks or Manufacturing). - CORRECT ANSWER bars, large restaurants,
banks or manufacturing businesses
The BOP offers two levels of peril power: ____(Standard) or _____. - CORRECT
ANSWER Basic or Special
Both the building and the _____ are automatically covered. - CORRECT ANSWER
Contents
The BOP standard deductible is $____. - CORRECT ANSWER $500
The BOP does NOT contain a Coinsurance requirement; however, there is an
incentive to purchase an adequate amount of coverage. If you purchase at least
_______, your loss settlement will be on a Replacement Cost basis instead of on
an ___ basis. - CORRECT ANSWER 80 percent to value, ACV
,The BOP automatically provides _____, ______coverage for Loss of Income and
Extra Expense. However, there is a ______ time based deductible. - CORRECT
ANSWER months, 72 hour (3 Day) coverage, 72 hour (3 Day)
The BOP has a built in peak season benefit that automatically allows for up to a __
percent increase in business inventory without the necessity of notifying the
insurance company. - CORRECT ANSWER 25
Optional BOP coverage's include Outdoor Signs, ____, ______, _____ , _____ and
Money and Securities. - CORRECT ANSWER Employee Dishonesty, Mechanical
Breakdown, Burglary and Robbery
The BOP Endorsement that gives a business a premium reduction for installing
burglar alarms or fire alarms is called Protective _____. - CORRECT ANSWER
Safeguards
Under the Protective Safeguards endorsement, your burglar alarm can be out of
service for up to _____ without notifying the company before you lose coverage. -
CORRECT ANSWER 48 hours (two days)
The Commercial Property module of the Commercial Package Policy excludes
coverage for losses due to boiler ____ or _____ breakdown. - CORRECT ANSWER
Explosion or Mechanical
The Boiler and Machinery (B and M) module is the way to _____ these Exclusions.
- CORRECT ANSWER Buy back
B and M policies are written on an ____ basis, not on an occurrence basis. -
CORRECT ANSWER Accident
The Boiler coverage is best described as ____ against _____. - CORRECT ANSWER
objects against accidents
The Machinery coverage of the B and M module is for the ____ and ____
breakdown of mechanical or electrical equipment. - CORRECT ANSWER sudden
and accidental
, ______ that can be insured under a B and M policy include boilers, air
conditioning units, engines, pumps, electrical panels, turbines, and compressors. -
CORRECT ANSWER Objects
The B and M policy covers not only your own property, but also other people's
property that is in your ___,____, and ____. - CORRECT ANSWER Care, Custody
and Control.
In order to get damaged equipment repaired as soon as possible, the B and M
policy pays up to $25,000 in ______. - CORRECT ANSWER Expediting Expenses
Under the ______ an insurance company boiler inspector may immediately
suspend coverage by giving the Insured written notice of the boiler defect. -
CORRECT ANSWER Suspension Provision
Business Income and ______ coverage's can be added to the B and M policy. -
CORRECT ANSWER Extra Expense
Unfortunately the biggest risk that an employer has regarding Crime insurance is
his/her own ___. - CORRECT ANSWER Employees
As an employer you can protect yourself against employee theft by purchasing
_____. - CORRECT ANSWER Fidelity Bonds
In a Fidelity Bond it is the employee that owes the obligation to the employee, so
the employee is the _____. The employer is owed the obligation, so the employer
is the _____. The insurance company agrees to pay, so it is the _____. - CORRECT
ANSWER Principal, Obligee, Surety or Guarantor.
Coverage on a bonded employee automatically terminates as soon as the
employer becomes aware of a _____ act of that employee that could be the basis
of a claim. No second chances! - CORRECT ANSWER Dishonest
A Fidelity Bond that covers multiple employees that are listed by job title and may
have different amounts of coverage for different positions is called a ____. -
CORRECT ANSWER Position Schedule Bond
Answers
The Business owners Policy, or BOP, is a ____ policy that can be used to cover
most small low _____. - CORRECT ANSWER Prepackaged, Low risk
One of the advantages of the BOP is that it is ____, which means that many of the
coverage questions have been predetermined by the insurance company which
lowers the _____. - CORRECT ANSWER Prepackaged, Premium
The BOP automatically includes both ____ coverage's and ____ coverage's. -
CORRECT ANSWER Property and Liability
Eligible for a BOP are small to medium _____ businesses. - CORRECT ANSWER Low
risk
Ineligible for a BOP are high risk businesses, such as auto repair businesses, auto
service stations, auto dealers, parking garages, ____,_____,____ or ______ (no
Cars, Bars, Banks or Manufacturing). - CORRECT ANSWER bars, large restaurants,
banks or manufacturing businesses
The BOP offers two levels of peril power: ____(Standard) or _____. - CORRECT
ANSWER Basic or Special
Both the building and the _____ are automatically covered. - CORRECT ANSWER
Contents
The BOP standard deductible is $____. - CORRECT ANSWER $500
The BOP does NOT contain a Coinsurance requirement; however, there is an
incentive to purchase an adequate amount of coverage. If you purchase at least
_______, your loss settlement will be on a Replacement Cost basis instead of on
an ___ basis. - CORRECT ANSWER 80 percent to value, ACV
,The BOP automatically provides _____, ______coverage for Loss of Income and
Extra Expense. However, there is a ______ time based deductible. - CORRECT
ANSWER months, 72 hour (3 Day) coverage, 72 hour (3 Day)
The BOP has a built in peak season benefit that automatically allows for up to a __
percent increase in business inventory without the necessity of notifying the
insurance company. - CORRECT ANSWER 25
Optional BOP coverage's include Outdoor Signs, ____, ______, _____ , _____ and
Money and Securities. - CORRECT ANSWER Employee Dishonesty, Mechanical
Breakdown, Burglary and Robbery
The BOP Endorsement that gives a business a premium reduction for installing
burglar alarms or fire alarms is called Protective _____. - CORRECT ANSWER
Safeguards
Under the Protective Safeguards endorsement, your burglar alarm can be out of
service for up to _____ without notifying the company before you lose coverage. -
CORRECT ANSWER 48 hours (two days)
The Commercial Property module of the Commercial Package Policy excludes
coverage for losses due to boiler ____ or _____ breakdown. - CORRECT ANSWER
Explosion or Mechanical
The Boiler and Machinery (B and M) module is the way to _____ these Exclusions.
- CORRECT ANSWER Buy back
B and M policies are written on an ____ basis, not on an occurrence basis. -
CORRECT ANSWER Accident
The Boiler coverage is best described as ____ against _____. - CORRECT ANSWER
objects against accidents
The Machinery coverage of the B and M module is for the ____ and ____
breakdown of mechanical or electrical equipment. - CORRECT ANSWER sudden
and accidental
, ______ that can be insured under a B and M policy include boilers, air
conditioning units, engines, pumps, electrical panels, turbines, and compressors. -
CORRECT ANSWER Objects
The B and M policy covers not only your own property, but also other people's
property that is in your ___,____, and ____. - CORRECT ANSWER Care, Custody
and Control.
In order to get damaged equipment repaired as soon as possible, the B and M
policy pays up to $25,000 in ______. - CORRECT ANSWER Expediting Expenses
Under the ______ an insurance company boiler inspector may immediately
suspend coverage by giving the Insured written notice of the boiler defect. -
CORRECT ANSWER Suspension Provision
Business Income and ______ coverage's can be added to the B and M policy. -
CORRECT ANSWER Extra Expense
Unfortunately the biggest risk that an employer has regarding Crime insurance is
his/her own ___. - CORRECT ANSWER Employees
As an employer you can protect yourself against employee theft by purchasing
_____. - CORRECT ANSWER Fidelity Bonds
In a Fidelity Bond it is the employee that owes the obligation to the employee, so
the employee is the _____. The employer is owed the obligation, so the employer
is the _____. The insurance company agrees to pay, so it is the _____. - CORRECT
ANSWER Principal, Obligee, Surety or Guarantor.
Coverage on a bonded employee automatically terminates as soon as the
employer becomes aware of a _____ act of that employee that could be the basis
of a claim. No second chances! - CORRECT ANSWER Dishonest
A Fidelity Bond that covers multiple employees that are listed by job title and may
have different amounts of coverage for different positions is called a ____. -
CORRECT ANSWER Position Schedule Bond
