Exam FX, VA Property & Casualty Insurance
Exam | 303 Questions and Answers | 100%
verified
1). The members of a limited liability company are insureds under a businessowners policy
(bop) if
Ans: The limited liability company is designated as the named insured.
2). 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
Ans: Utility Services - Direct Damage.
3). 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?
Ans: Providing specific details regarding an occurrence
4). 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?
Ans: Transfer of rights and duties under the policy
5). 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?
Ans: The coinsurance formula would apply
6). The businessowners policy liability coverage will pay for necessary medical expenses of
others incurred within what maximum time period?
Ans: 1 year
7). The most the insurer will pay for a loss under a businessowners policy is
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, Ans: The limit of insurance after the deductible is paid.
8). Which of the following is not settled on an actual cash value basis while covered under the
business property coverage form?
Ans: Valuable papers and records
9). 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?
Ans: Hired and nonowned auto liability
10). Which of the following is an example of a protective safeguard in a businessowners
policy?
Ans: Automatic sprinkler system
11). A bop (businessowners policy) is most similar to
Ans: Homeowners.
12). 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?
Ans: 48 hours
13). 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?
Ans: Utility service - direct damage
14). Which of the following is eligible for a businessowners policy?
Ans: A 6-story office building with less than 100,000 square feet total area
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, 15). In business income additional coverage in a businessowners policy (bop), the waiting
period that must occur before the period of restoration may begin is
Ans: 72 hours.
16). Under the additional coverages of a businessowners policy, property removed to protect it
from loss will be covered at another location for up to
Ans: 30 days.
17). All of the following statements are true regarding employee dishonesty optional coverage
under the businessowners policy (bop) except
Ans: It provides coverage for all employees, even those employees who were
terminated in the past 90 days.
18). Under a businessowners policy, the inspections and surveys condition specifies all of the
following except
Ans: The insurer does not have the right to inspect the insured's property and
operations.
19). When is a hired and nonowned auto liability endorsement available in a businessowners
policy (bop)?
Ans: Only if the insured does not have commercial auto coverage
20). In addition to the common policy conditions, all of the following conditions apply to liability
coverage except
Ans: Employers liability.
21). The liability coverage of the businessowners policy is written on a
Ans: Businessowners liability coverage form.
22). All of the following would be covered under the medical expense coverage of a
businessowners policy except
Ans: Mental health counseling.
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, 23). A businessowners policy is
Ans: A self-contained prepackaged policy.
24). Which of the following is defined as a covered cause of loss in businessowners property
coverage?
Ans: Leakage from fire-extinguishing equipment
25). What is the limit for the forgery or alteration coverage in the businessowners policy?
Ans: $2,500
26). Which of the following is not an optional coverage available in a businessowners policy?
Ans: Workers compensation
27). The pollutant cleanup and removal coverage in the businessowners policy has a limit of
Ans: $10,000 in any 12-month period.
28). Which of the following limits, shown in the declarations of a policy, applies to medical
expenses?
Ans: Per person
29). The inspections and surveys condition in a businessowners policy
Ans: Allows the insurer the right to inspect the insured's premises.
30). 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?
Ans: The mortgageholder must petition the state department of insurance for named
status.
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Exam | 303 Questions and Answers | 100%
verified
1). The members of a limited liability company are insureds under a businessowners policy
(bop) if
Ans: The limited liability company is designated as the named insured.
2). 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
Ans: Utility Services - Direct Damage.
3). 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?
Ans: Providing specific details regarding an occurrence
4). 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?
Ans: Transfer of rights and duties under the policy
5). 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?
Ans: The coinsurance formula would apply
6). The businessowners policy liability coverage will pay for necessary medical expenses of
others incurred within what maximum time period?
Ans: 1 year
7). The most the insurer will pay for a loss under a businessowners policy is
PaperStoc.com Page 1 of 51
, Ans: The limit of insurance after the deductible is paid.
8). Which of the following is not settled on an actual cash value basis while covered under the
business property coverage form?
Ans: Valuable papers and records
9). 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?
Ans: Hired and nonowned auto liability
10). Which of the following is an example of a protective safeguard in a businessowners
policy?
Ans: Automatic sprinkler system
11). A bop (businessowners policy) is most similar to
Ans: Homeowners.
12). 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?
Ans: 48 hours
13). 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?
Ans: Utility service - direct damage
14). Which of the following is eligible for a businessowners policy?
Ans: A 6-story office building with less than 100,000 square feet total area
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, 15). In business income additional coverage in a businessowners policy (bop), the waiting
period that must occur before the period of restoration may begin is
Ans: 72 hours.
16). Under the additional coverages of a businessowners policy, property removed to protect it
from loss will be covered at another location for up to
Ans: 30 days.
17). All of the following statements are true regarding employee dishonesty optional coverage
under the businessowners policy (bop) except
Ans: It provides coverage for all employees, even those employees who were
terminated in the past 90 days.
18). Under a businessowners policy, the inspections and surveys condition specifies all of the
following except
Ans: The insurer does not have the right to inspect the insured's property and
operations.
19). When is a hired and nonowned auto liability endorsement available in a businessowners
policy (bop)?
Ans: Only if the insured does not have commercial auto coverage
20). In addition to the common policy conditions, all of the following conditions apply to liability
coverage except
Ans: Employers liability.
21). The liability coverage of the businessowners policy is written on a
Ans: Businessowners liability coverage form.
22). All of the following would be covered under the medical expense coverage of a
businessowners policy except
Ans: Mental health counseling.
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, 23). A businessowners policy is
Ans: A self-contained prepackaged policy.
24). Which of the following is defined as a covered cause of loss in businessowners property
coverage?
Ans: Leakage from fire-extinguishing equipment
25). What is the limit for the forgery or alteration coverage in the businessowners policy?
Ans: $2,500
26). Which of the following is not an optional coverage available in a businessowners policy?
Ans: Workers compensation
27). The pollutant cleanup and removal coverage in the businessowners policy has a limit of
Ans: $10,000 in any 12-month period.
28). Which of the following limits, shown in the declarations of a policy, applies to medical
expenses?
Ans: Per person
29). The inspections and surveys condition in a businessowners policy
Ans: Allows the insurer the right to inspect the insured's premises.
30). 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?
Ans: The mortgageholder must petition the state department of insurance for named
status.
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