New Jersey Property Insurance Exam |
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Terms in this set (705)
Three categories of liability Business Liability Coverage
coverage under the BOP Supplementary Payments
Medical Expenses
BOP Meaning Businessowners Policy
Monoline Policy property of liability policy that provides only
one type of insurance coverage form
Package Policy provides two or more coverage forms in a
single policy
Types of Businesses INELIGIBLE Manufacturers
for a BOP Auto Sales, Repair or Service Stations
Parking Lots or Garages
Bars & Pubs
Places of Amusement
Banks & other Financial Institutions
Self-Storage Facilities (that store motorized
vehicles of any type outdoors)
,Inflation Guard Provision property insurance provision that automatically
and continuously increases building coverage
by a percentage specified in the declarations
BOP Valuation Provision the limit of insurance must be at least 80% of
the replacement cost of the covered property
for the insured to recover the full replacement
value of the property
Under the BOP Valuation ACV of the property; OR
Provision, the Insurer will pay the a portion of the replacement cost equal to the
greater of what if the limit of ratio of the limit of insurance to 80% of the cost
insurance is less than 80%? of repair or replacement
Insurance economical way for an individual/group to
transfer the financial risk of loss to an insurance
company (it guards against perils)
Property Insurance transfers the risk of financial loss resulting from
damages or destruction of the insured's
personal or commercial property
Perils cause of loss (lead to serious financial losses)
Examples of Perils Accidents
Severe Weather Events
Theft
Indemify main/fundamental purpose is to compensate
or to make right
, Risk chance of loss
Loss unplanned, unwelcomed reduction in
economic value
Exposure state of being subject to possible loss
Hazard a condition that increases the chance of a peril
Two Types of Loss Direct
Indirect
Direct Loss immediate result of an event caused by a
covered peril
Example of Direct Loss damages to your house caused by a fire
Indirect Loss losses suffered as a result or consequence of
the direct loss - more remote ramification than
a direct loss, but still a result of a loss from a
covered peril
Example of Indirect Loss additional living expenses because of a house
fire
Example of Exposure motorists are exposed to the risk of being
involved in an auto accident that can result in
injuries, damages to vehicles, law suits, or even
death
Questions with 100% Correct Answers |
Verified | Latest Update 2026
Save
Terms in this set (705)
Three categories of liability Business Liability Coverage
coverage under the BOP Supplementary Payments
Medical Expenses
BOP Meaning Businessowners Policy
Monoline Policy property of liability policy that provides only
one type of insurance coverage form
Package Policy provides two or more coverage forms in a
single policy
Types of Businesses INELIGIBLE Manufacturers
for a BOP Auto Sales, Repair or Service Stations
Parking Lots or Garages
Bars & Pubs
Places of Amusement
Banks & other Financial Institutions
Self-Storage Facilities (that store motorized
vehicles of any type outdoors)
,Inflation Guard Provision property insurance provision that automatically
and continuously increases building coverage
by a percentage specified in the declarations
BOP Valuation Provision the limit of insurance must be at least 80% of
the replacement cost of the covered property
for the insured to recover the full replacement
value of the property
Under the BOP Valuation ACV of the property; OR
Provision, the Insurer will pay the a portion of the replacement cost equal to the
greater of what if the limit of ratio of the limit of insurance to 80% of the cost
insurance is less than 80%? of repair or replacement
Insurance economical way for an individual/group to
transfer the financial risk of loss to an insurance
company (it guards against perils)
Property Insurance transfers the risk of financial loss resulting from
damages or destruction of the insured's
personal or commercial property
Perils cause of loss (lead to serious financial losses)
Examples of Perils Accidents
Severe Weather Events
Theft
Indemify main/fundamental purpose is to compensate
or to make right
, Risk chance of loss
Loss unplanned, unwelcomed reduction in
economic value
Exposure state of being subject to possible loss
Hazard a condition that increases the chance of a peril
Two Types of Loss Direct
Indirect
Direct Loss immediate result of an event caused by a
covered peril
Example of Direct Loss damages to your house caused by a fire
Indirect Loss losses suffered as a result or consequence of
the direct loss - more remote ramification than
a direct loss, but still a result of a loss from a
covered peril
Example of Indirect Loss additional living expenses because of a house
fire
Example of Exposure motorists are exposed to the risk of being
involved in an auto accident that can result in
injuries, damages to vehicles, law suits, or even
death
