Which of the following statements about the business owners policy is (are) true?

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Which of the following statements about the business owners policy is (are) true?

I. It is designed primarily to meet the insurance needs of large manufacturing firms.
II. It is a package policy designed to meet the basic property and liability needs of an insured in a single contract.

A) I only
B) II only
C) Both I and II
D) Neither I nor II

Answer: B

Commercial Property Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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