BOP QUIZ QUESTIONS AND ANSWERS LATEST 2024/2025 UPDATED FULLY SOLVED 100%
What type of endorsement CANNOT be added to a BOP contract? - Answer- premises and operations
Premises and operations is automatic liability coverage, not an optional endorsement. Hired auto, accounts receivable, and v...
What type of endorsement CANNOT be added to a BOP contract? - Answer- premises
and operations
Premises and operations is automatic liability coverage, not an optional endorsement.
Hired auto, accounts receivable, and valuable paper and records are all endorsements.
When a fire department is called to save or protect covered property, and charges the
insured for the protection service, a Business owners policy will pay up to - Answer-
$2500
Auto liability is excluded under Section II of the BOP. An insured allowing employees to
use their own cars on company time needs which of the following? - Answer- hired and
non owned auto coverage endrosement
The employee's personal auto policy will probably not name the store as additional
insured as there is no insurable interest in the employee's car. The store needs the
Hired and Non-owned Auto liability endorsement (BP 04 04) added to the BOP to
extend the section II liability coverage to protect the store for a car it does not own being
used on company time. The endorsement protects the store, not the employee's
personal responsibility. The employee's personal auto policy will do that.
What is NOT excluded from a Business owners policy? - Answer- signs attatched to
building
A Business owners policy provides coverage for extra expense and business income.
What would also be covered by this policy? - Answer- loss as a resuklt of destruction
orderd by govt authority to prevent spread of fire
General exclusions under most policies are losses from nuclear radiation, building
ordinances, and that caused by dishonest employees.
Under a Business owners policy, property losses are settled on what type of basis? -
Answer- replacement cost
, Unlike the "Commercial Building and Personal Property" form, which indemnifies
covered losses on an actual cash value basis, the Business owners policy settles
covered losses on a replacement cost basis, if the property is insured to 80% of its
value. If this level is not maintained, losses are paid at actual cash value.
What policy would a bakery owner purchase in order to be properly protected against
possible property and liability losses? - Answer- Business owners policy
Commercial crime and business income (e.g., business interruption) are property forms.
They do not provide liability coverage. However, a BOP is a package designed for
certain businesses, such as bakeries, that provides both property and liability coverage.
What is covered under a Business owners policy? - Answer- loss of income due to a
necessary suspension of operations during restoration
Business income losses are triggered when there is actual physical destruction to
covered property. Only D implies physical destruction of the building.
Strasburg Meats is insured under a BOP. A traffic accident 6 blocks away causes a
power outage at the substation and power is out at the store for 3 days. Due to the rise
in freezer/refrigeration temperatures, the health department requires the store to discard
everything. The loss of the contents would be covered by - Answer- utility services-
direct damage endorsement
Since the power interruption is the direct cause of the loss, contents coverage would
exclude this claim. The Utility Services - Direct Damage endorsement (BP 04 56) would
provide coverage if added to the policy.
Strasburg Meats is insured under a BOP. A traffic accident 6 blocks away causes a
power outage at the substation and power is out at the store for 3 days. Due to the rise
in freezer/refrigeration temperatures, the health department requires the store to discard
everything. It takes another 3 days to get more product and have it ready for sale. The
loss of income over the 6 days would be covered by - Answer- Utility Services - Time
Element endorsement
Since the power interruption is the direct cause of the loss and Off Premises power
interruption is an exclusion under the property section, business interruption coverage
would also be excluded. The Utility Services - Time Element endorsement (BP 04 57)
would provide coverage if added to the policy.
A Business owners policy was designed to provide package-type coverage for small
businesses. What type of property is covered under this contract? - Answer- fixtures
Securities, exterior signs (unless attached to the building), and money are excluded by
the BOP. Buildings, including floor coverings, additions, machinery, and fixtures are
meant to be covered.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £11.01. You're not tied to anything after your purchase.
