4/5/25, 6:43 State of CT Insurance Producers License Exam - Businessowners Policy |
PM
STATE OF CT INSURANCE PRODUCERS LICENSE EXAM -
BUSINESSOWNERS POLICY EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED
_Package policy combining property & liability coverages
Cost of insurance more competitive than seperate standalone polices
*Doesnt use seperate cause of loss forms *
Overview
***Liability = Similar to CGL policy
-Premises & Operations
-Personal & Advertising Liability
-Products & Completed Operations
-Medical Payments
-***Method of loss valuation - REPLACEMENT COST
**Provided insurance carried to 80% of replacement cost or more
**** Limit of Insurance for BLDG automatic increase annually The formula is annual 8
% multipled by limit on declarations divided by 365 - Gives insurance limit
available on any given day
BOP Policy Features
**** Business Income & Extra Expense automatically included for up to 12
consecutive months during period of restoration after direct loss
*** Period of Restoration begins 72 Hrs after the time of direct physical loss
*** Period of restoration ends when repairs are complete of business resumes at
new location
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8
, 4/5/25, 6:43 State of CT Insurance Producers License Exam - Businessowners Policy |
PM
**BOP designed for small to medium size risks
**No high risk to highly specialized businesses
Businesses with $6M of sales and 35,000 SQ FT Max
Eligible are:
1) Apt bldgs-
of any size including residential condo assocoations
2) Office buildings -
max 6 stories and 100,000 SQ FT
3)Service or Processing
Bakeries , laundramats , dry cleaners
4) Wholesalers
No more than 25% of sales derived from retail and no more than 25% of floor
space open to public
5) Contractors
Eligible Risks Annual gross payroll of $300,000 max and no more than 10% of sales from
subcontractor work
6) Restaurants
Fast food , limited cooking
7) Motels
Three stories in height max , not seasonal , no bar or cocktail lounge
8) Convenience Food/ Gasoline
Sales from gasoline not to exceed 75% of gross receipts
No auto service or repair
No car wash
No Propane or Kerosine filling operations
9)Self Storage Facilities
Max 2 stores , No cold storage or industrial use for materials , chemicals ,
pollutants or waste
10) Condo Commercial Unit Owners
Auto Dealer , Service Sales , Parking Garages
Restaurants Bars & Grilles ( except Fast Food or limited cooking )
BOP Ineligible Risks
Places of amusement
Manufacturers
Businessowners Coverage Form
***Covered cause of loss - Open Perils
***Property Covered:
-Bulidings , structures , addtions , fixtures
-Insured's Personal Business Property
Section 1) Property -Personal Property owned by insured used to maintain premises
-Outdoor furniture
-Business personal property within bulding or 100 feet from Premises
-Property of others in the insureds CCC
-Leased property for which insured is responsible
Aircraft , Automobiles Other motorized vehicles subject to registration
Money or securities
Land
Watercraft and associated equipment , while afloat
Secftion 1) Exclusions
Computers permanently attached or installed in aircraft , watercraft or motorized
vehicles
Accounts bills notices of debt
Outdoor fences radio or TV attenanaes , satellite dishes
2/
8
PM
STATE OF CT INSURANCE PRODUCERS LICENSE EXAM -
BUSINESSOWNERS POLICY EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED
_Package policy combining property & liability coverages
Cost of insurance more competitive than seperate standalone polices
*Doesnt use seperate cause of loss forms *
Overview
***Liability = Similar to CGL policy
-Premises & Operations
-Personal & Advertising Liability
-Products & Completed Operations
-Medical Payments
-***Method of loss valuation - REPLACEMENT COST
**Provided insurance carried to 80% of replacement cost or more
**** Limit of Insurance for BLDG automatic increase annually The formula is annual 8
% multipled by limit on declarations divided by 365 - Gives insurance limit
available on any given day
BOP Policy Features
**** Business Income & Extra Expense automatically included for up to 12
consecutive months during period of restoration after direct loss
*** Period of Restoration begins 72 Hrs after the time of direct physical loss
*** Period of restoration ends when repairs are complete of business resumes at
new location
1/
8
, 4/5/25, 6:43 State of CT Insurance Producers License Exam - Businessowners Policy |
PM
**BOP designed for small to medium size risks
**No high risk to highly specialized businesses
Businesses with $6M of sales and 35,000 SQ FT Max
Eligible are:
1) Apt bldgs-
of any size including residential condo assocoations
2) Office buildings -
max 6 stories and 100,000 SQ FT
3)Service or Processing
Bakeries , laundramats , dry cleaners
4) Wholesalers
No more than 25% of sales derived from retail and no more than 25% of floor
space open to public
5) Contractors
Eligible Risks Annual gross payroll of $300,000 max and no more than 10% of sales from
subcontractor work
6) Restaurants
Fast food , limited cooking
7) Motels
Three stories in height max , not seasonal , no bar or cocktail lounge
8) Convenience Food/ Gasoline
Sales from gasoline not to exceed 75% of gross receipts
No auto service or repair
No car wash
No Propane or Kerosine filling operations
9)Self Storage Facilities
Max 2 stores , No cold storage or industrial use for materials , chemicals ,
pollutants or waste
10) Condo Commercial Unit Owners
Auto Dealer , Service Sales , Parking Garages
Restaurants Bars & Grilles ( except Fast Food or limited cooking )
BOP Ineligible Risks
Places of amusement
Manufacturers
Businessowners Coverage Form
***Covered cause of loss - Open Perils
***Property Covered:
-Bulidings , structures , addtions , fixtures
-Insured's Personal Business Property
Section 1) Property -Personal Property owned by insured used to maintain premises
-Outdoor furniture
-Business personal property within bulding or 100 feet from Premises
-Property of others in the insureds CCC
-Leased property for which insured is responsible
Aircraft , Automobiles Other motorized vehicles subject to registration
Money or securities
Land
Watercraft and associated equipment , while afloat
Secftion 1) Exclusions
Computers permanently attached or installed in aircraft , watercraft or motorized
vehicles
Accounts bills notices of debt
Outdoor fences radio or TV attenanaes , satellite dishes
2/
8
