EXAM FX, VA PROPERTY & CASUALTY INSURANCE EXAM|WITH COMPLETE SOLUTIONS|ALREADY GRADED A|DOWNLOAD TO PASS

The members of a limited liability company are insureds under a businessowners policy (BOP) if 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 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? 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? 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? The coinsurance formula would apply The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period? 1 year The most the insurer will pay for a loss under a businessowners policy is 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? 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? Hired and nonowned auto liability Which of the following is an example of a protective safeguard in a businessowners policy? Automatic sprinkler system A BOP (businessowners policy) is most similar to 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? 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? Utility service - direct damage Which of the following is eligible for a businessowners policy? 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 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 30 days. All of the following statements are true regarding employee dishonesty optional coverage under the businessowners policy (BOP) EXCEPT 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 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)? 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 Employers liability. The liability coverage of the businessowners policy is written on a Businessowners liability coverage form. All of the following would be covered under the medical expense coverage of a businessowners policy EXCEPT Mental health counseling. A businessowners policy is A self-contained prepackaged policy. Which of the following is defined as a covered cause of loss in businessowners property coverage? Leakage from fire-extinguishing equipment What is the limit for the forgery or alteration coverage in the businessowners policy? $2,500 Which of the following is NOT an optional coverage available in a businessowners policy? Workers compensation The pollutant cleanup and removal coverage in the businessowners policy has a limit of $10,000 in any 12-month period. Which of the following limits, shown in the declarations of a policy, applies to medical expenses? Per person The inspections and surveys condition in a businessowners policy 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? 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? 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? 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 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 At any time by mailing a written notice of cancellation. Utility services - time element covers business income or additional expense losses arising from disruption of service caused by a covered peril.