Which of the following statements concerning the businessowners policy (BOP) is correct?
A) Manufacturing businesses are generally eligible for coverage
B) It is most commonly used to insure large businesses
C) The BOP is designed to provide property and liability coverage for small or les...
BOP Exam Questions with 100% Correct Answers Which of the following statements concerning the businessowners policy (BOP) is correct?
A) Manufacturing businesses are generally eligible for coverage
B) It is most commonly used to insure large businesses
C) The BOP is designed to provide property and liability coverage for small or less complex businesses.
D) Eligibility rules are based on an applicant's loss history. Correct Answer C) The BOP is designed to provide property and liability coverage for small or less complex businesses.
Per the ISO eligibility rules, which of the following types of buildings would be eligible
for coverage under a businessowners policy (BOP)?
A) A 30,000 square foot insurance agency.
B) A six-story, 120,000 square foot office building
C) A seven-story 75,000 square foot office building.
D) A 200,000 square foot bakery with annual sales in excess of $6,000,000. Correct Answer A) A 30,000 square foot insurance agency.
All of the following types of businesses are ineligible for the ISO BOP due to the severity of risk and/or special coverage situations EXCEPT:
A) Auto repairers.
B) Funeral homes.
C) Bars, pubs and cocktail lounges.
D) Financial institutions. Correct Answer funeral homes
Which of the following statements is/are correct?
I. The BOP provides coverage for all buildings and structures located at the premises
described in the Declarations; that is, only the premises must be described for any building located at the described premises to be covered.
II. The B&PP Coverage Form only provides coverage for buildings or structures specifically described in the Declarations. Correct Answer C) Both I & II.
Which of the following statements is/are correct?
I. The Named Perils Endorsement (BP 10 09) to the Businessowners Coverage Form provides the same causes of loss coverage as the Causes of Loss - Basic Form, plus limited off-premises transit coverage. II. This named perils coverage form is frequently used by businesses because it provides broad coverage at an economical price. Correct Answer A) I only.
The business income and extra expense coverage under a BOP is typically subject to which one of the following limitations?
A) Specific dollar limit.
B) Coinsurance.
C) Monthly limit of indemnity.
D) 12 consecutive months limitation. Correct Answer D) 12 consecutive months limitation.
Which of the following statements concerning a typical Businessowners Coverage Form is/are correct?
I. The causes of loss are contained within the Businessowners Coverage Form; this is in contrast to the B&PP Coverage Form where the Causes of Loss Form is attached to the B&PP.
II. The list of property not covered under the BOP is shorter than the list of property not covered under the B&PP Coverage Form. Correct Answer C) Both I & II.
Which of the following statements concerning differences between the BOP and CGL policy is/are true?
I. The BOP has its own set of conditions contained within the Businessowners Coverage Form while the CGL policy utilizes common policy conditions shared with other coverage forms.
II. While the CGL states it provides primary coverage (subject to a few exceptions), the BOP is excess over any other applicable coverage. Correct Answer C) Both I & II.
All of the following statements concerning BOP Endorsement BP 04 04 are true EXCEPT:
A) An insured business with a BOP who doesn't own any autos and does not have a Commercial Auto Policy would benefit from purchasing the Hired Auto and Non-
Owned Auto.Liability endorsement.
B) The Hired Auto and Non-Owned Auto Liability endorsement is also available under a CGL coverage form.
C) Coverage under the Hired Auto and Non-Owned Auto Liability endorsement can be purchased for hired auto liability and/or non-owned auto liability.
D) A car rented by the named insured or an employee while on company business is
an example of a "hired auto." Correct Answer B) The Hired Auto and Non-Owned Auto Liability endorsement is also available under a CGL coverage form.
Which of the following statements concerning the Businessowners Coverage Form Section II - Liability is correct?
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