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Flashcards in Comm Chp 10 Deck (12)
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Adverse Selection

in general the tendency for people with the greatest probability of loss to be the ones most likely to purchase insurance


Automatic Seasonal Increase Provision

automatically increasing the amount of insurance for certain time periods


Hired and Non Owned Autos

for insured that owns no autos, the availability of hired and non owned autos coverage under BOP eliminates the need to obtain a separate business auto policy


Professional Liability

automatically provides professional liability coverage for retail drugstores including an exception for such stores in the professional liability exclusion


Employee Benefit Liability and Employment Practices Liability

cost effective options enable smaller insureds to avoid the higher minimum premiums that usually apply to stand alone policies


Farm Property- Farm dwelling, appurtenant structures and household personal property coverage form

coverage a- dwelling
coverage b- other private structures appurtenant to dwelling
coverage c- household personal property
coverage d- loss of use
coverage e- scheduled farm personal property
coverage f- unscheduled farm personal property


Property coverages avaliable in BOP

employee dishonesty, money and securities, forgery, interior and exterior glass, outdoor signs, mechanical breakdown, money orders, computer coverage, accounts receivable and valuable papers and records


Which one of the following is correct with respect to the professional liability coverage available under the businessowners policy (BOP) and the Commercial General Liability (CGL) Coverage Form?

. An important difference between the BOP's liability coverage and the CGL's is the availability of optional professional liability coverage endorsements for use with BOP.


Which one of the following is true with regard to the coverage limits in the liability section of the
businessowners policy (BOP)?

Maximum limits are more restricted than the CGL; few insurers offer per occurrence limits over $2 million in their BOPs.


All of the following statements regarding Coverage E—Scheduled Farm Personal Property of the ISO
Farm Policy are true, EXCEPT:

80% co insurance


Which one of the following statements is correct with respect to the liability coverage available under a businessowners policy (BOP)?

Both ISO and AAIS offer BOP endorsements adding employee benefit liability coverage and employment practices liability coverage.


Which one of the following statements is correct with respect to the liability coverage available under businessowners policies (BOPs)?

Certain liability coverage options are not part of most BOP programs because the insureds that need them generally do not qualify for BOPs.