NJ Property & Casualty Exam Practice Questions and Answers

NJ Property & Casualty Exam Practice Questions and AnswersNJ Property & Casualty Exam Practice Questions and Answers What is a Business Owners Policy (BOP)? - ANSWER-They usually are targeted at small and medium-sized businesses. This assembles the basic coverages required by a business owner in one bundle. What are the features of a BOP Policy? - ANSWER-Property Liability, Business Income, and General Liability What is the method of valuation on building and business personal property? - ANSWER-Replacement Cost / 80% or more of the full replacement cost of the property How long is the "Period of Restoration" following a covered direct loss? - ANSWER-12 Consecutive Months, Restoration begins 72 hours after the time of direct physical loss & ends when the task is completed or business starts at a new permanent location What makes a business BOP eligible? - ANSWER-Business has to generate sales over $6million or that occupy more than 35,000 square feet of space What types of Businesses are BOP Eligible? - ANSWER-Apartment buildings, office buildings (6 stories or lower/ 100.000 sq ft.), Service, Processing, Wholesaler, Contractor, Restaurant (Fast Food), Motel (3 Stories or lower), Convenience Store/Gasoline Store, Self Storage What type of Businesses are not BOP Eligible? - ANSWER-Auto Repair/Service Station, Restaurant (Not Fast Food), Place of Amusement, Manufacturers What is covered in Section 1 of the BOP? - ANSWER-Buildings & Structures at the premises described in the dec, business personal property located in or on the building at the described premises or in the open (or vehicle) within 100 ft of the premises, leased personal property What is the ISO? - ANSWER-Insurance Service Office - Provides rating services by filling out an ISO Form What are some coverage extensions in the BOP? - ANSWER-Newly acquired/Constructed Property, Personal Property off Premises, Outdoor Property, Personal Effects, Valuable Paper & Records, Accounts Receivable, Exclusions What is Business Income Extra Expense? - ANSWER-Loss of income and continuing expenses