Insurance MCQ

The Businessowners Coverage Form to the Businessowners Policy provides coverage on which of the following basis? a. Modified Perils b. Open Perils c. Broad Perils d. Simplified Perils Answer: b. Open Perils

Which of the following is an eligible risk under the BOP? a. Auto repair shop b. Manufacturer c. Fast food restaurant d. Small amusement park Answer: c. Fast food restaurant

The unendorsed Businessowners Policy will pay no more than what amount for the theft of jewelry? a. $7,500 b. $2,500 c. $5,000 d. $3,500 Answer: b. $2,500

Under the BOP, the insurer may examine and audit books and records at any time during the policy period and up to how many years following policy termination? a. 3 b. 1 c. 5 d. 7 Answer: a. 3

In which section of the BOP would coverage for outdoor property be found? a. Endorsements b. Coverage extensions c. Additional coverages d. Optional coverages Answer: b. Coverage extensions

Under the BOP, if coverage for business property equals 100% of the average monthly values for the preceding 12 months, an automatic increase of what amount is provided to offset seasonal variations in stock values? a. 5% b. 10% c. 15% d. 25% Answer: d. 25%

The Earthquake endorsement to the BOP provides that coverage continues for how long after a policy expires? a. 168 hours b. 36 hours c. 24 hours d. 48 hours Answer: a. 168 hours

In which section of the BOP would coverage for equipment breakdown be found? a. Optional coverages b. Coverage extensions c. Endorsements d. Additional coverages Answer: a. Optional coverages

All of the following are true about the Limits of Liability under Section II of the BOP, except: a. The Medical Expense limit is a per person limit b. The Products and Completed Operations aggregate limit is equal to the Liability and Medical Expense limit c. The Liability and Medical Expense limit applies per person or organization for personal injury claims d. The Damage to Premises Rented to You limit applies only to premises rented to the insured Answer: b. The Products and Completed Operations aggregate limit is equal to the Liability and Medical Expense limit

All of the following are true of a Businessowners Coverage Form, except: a. Section III of the coverage form contains the Common Policy Conditions b. The most the insurer will pay for loss or damage arising out of any occurrence is the limit of insurance shown in the Declarations c. Employee dishonesty is automatically included in each policy d. Land, including land on which the property is located, is not covered Answer: c. Employee dishonesty is automatically included in each policy

The BOP covers property while it is being temporarily stored in another location for how many days? a. 30 b. 60 c. 15 d. 10 Answer: a. 30

Which statement is false regarding the Businessowners Policy? a. Auto dealers, banks and places of amusement are not eligible b. Supplementary Payments include first aid expenses c. Supplementary Payments do not affect the policy limits d. Hired and non-owned autos may be included by endorsement Answer: b. Supplementary Payments include first aid expenses

All of the following are Optional Coverages under the Businessowners Policy, except: a. Outdoor signs b. Employee dishonesty c. Personal property of others that is in the insured's care, custody and control d. Money and securities Answer: c. Personal property of others that is in the insured's care, custody and control

Payroll is covered for how long under Businessowners Business Income coverage? a. 12 months b. 6 months c. Payroll is not covered d. 60 days Answer: d. 60 days

Which of the following is not an optional coverage under the BOP? a. Outdoor signs b. Electronic data c. Employee dishonesty d. Money and securities Answer: b. Electronic data

Within how many days after an insured acquires new business property must the property be added to the BOP policy? a. 60 b. 20 c. 45 d. 30 Answer: d. 30

Which of the following is false about the Businessowners Policy? a. The Supplementary Payments limit is a maximum of $2,500 for all expenses incurred by the insurer b. Medical expenses provide coverage without regard to negligence c. Medical expenses incurred within 1 year of the accident are covered d. A real estate manager is considered an insured Answer: a. The Supplementary Payments limit is a maximum of $2,500 for all expenses incurred by the insurer

All of the following are automatically covered under the Businessowners Policy, except: a. Business personal property b. Personal property of others that is in insured's care c. Mechanical breakdown d. Outdoor fixtures Answer: c. Mechanical breakdown

Choose the false statement regarding the Businessowners Policy. a. Pollution clean up and removal are covered as an Additional Coverage b. Manufacturers are eligible for coverage c. Watercraft and associated equipment while afloat are not covered d. Named perils coverage is available by endorsement Answer: b. Manufacturers are eligible for coverage

Which statement is false regarding Section II of the Businessowners Coverage Form? a. Medical expenses include bodily injury to an insured or a person hired to do work b. Medical expenses incurred within 1 year of the accident are covered c. Bodily injury or property damage expected or intended by the insured is excluded d. The definition of insured product does not include vending machines used to distribute the product Answer: a. Medical expenses include bodily injury to an insured or a person hired to do work