Section 3D

Question 0

BOP is designed for

Answer 0

small businesses

Question 1

BOP is a package policy designed for

Answer 1

Limited cooking or fast food restaurants, convenience stores ,
service or processing type businesses,
small office buildings,
apartment buildings, and
retail stores

Question 2

BOP has very competitive

Answer 2

Rates coupled with direct-bill renewal procedures

Question 3

BOP is similar to

Answer 3

A homeowners policy except it is for small businesses.

Question 4

Both property and liability coverages

Answer 4

Are included in the BOP

Question 5

The BOP allows the policyholder great flexibility permitting

Answer 5

Insureds to add additional coverages like crime or boiler and machinery to the package.

Question 6

Office buildings may not exceed 6 stories or have no more than

Answer 6

100,000 sq ft.

Question 7

Retail or service businesses may not have more than

Answer 7

25,000 sq ft and/or gross annual sales in excess of $3,000,000

Question 8

Office condominium associations

Answer 8

Are also eligible as processing-type businesses

Question 9

On a BOP, ineligible businesses are

Answer 9

Taverns, auto dealers, banks, credit unions,manufacturing companies, and contractors

Question 10

10 days advance notice is required

Answer 10

If cancellation due to nonpayment will occur.

Question 11

BOP property coverage form is

Answer 11

All-risk

Question 12

A limit of insurance must be

Answer 12

Shown on the declarations for each type of property to be covered.

Question 13

If named peril endorsement is added, it will cover

Answer 13

Fire, lightning, extended coverage, vandalism, sprinkler leakage, sinkhole collapse, volcanic action, and peril of transportation.

Question 14

Peril of transportation

Answer 14

Loss to business personal property in transit due to collision, derailment, or sinking of vessels

Question 15

Theft of business personal property is covered since

Answer 15

All-risk coverage applies to both the building and the contents

Question 16

To determine what an all-risk policy covers, you must

Answer 16

Look at the policy’s exclusions and /or limitations

Question 17

The BOP property coverage form provides additional extensions of coverage

Answer 17

Such as debris removal

Question 18

The BOP property coverage form also automatically includes coverage for loss of business income due to

Answer 18

A covered loss and extra expense incurred during a period of restoration.

Question 19

In the BOP, both loss of business income and extra expenses are indirect coverages that are included

Answer 19

Without any maximum policy limit.

Covered for 12 consecutive months after the date of loss

Question 20

The BOP will pay up to

Answer 20

$10,000 to extract pollutants.

Fire Dept. Service Charges are covered up to $2,500 in addition to limits.

Question 21

BOP replaces or restores electronic data up to

Answer 21

Annual aggregate of $10,000.

Also damage caused by fungi, wet or dry rot, or bacteria if resulting from other than fire or lightning is $15,000 and is not in addition to limits.

Question 22

The BOP is…

Answer 22

All-risk (theft coverage of furs, jewelry, and watches to a maximum of $2,500),

Built-In automatic increase (inflation guard),

Replacement Cost Basis

$500 deductible

Question 23

BOP excludes money and

Answer 23

Securities unless crime coverage is purchased.

Question 24

The BOP excludes coverage for

Answer 24

Aircraft, autos, money and securities, and watercraft as well as war, earth movement, nuclear hazard, power failure, and flood.

Question 25

The maximum deductible applicable to optional coverages purchased under the BOP program (such as...

Answer 25

Crime, fidelity, glass, and outdoor signs) is $500 per occurrence.

Question 26

Premium discounts may be given if the insured signs a protective safeguards warranty which states that if

Answer 26

The sprinkler or fire alarm systems do not work, fire claims will be denied.

Question 27

BOP liability has no

Answer 27

Deductible.

Question 28

BOP liability is $1,000,000 per occurrence for

Answer 28

BI and PD. This is a commercial policy so personal liability is not covered.

Question 29

In the BOP, bodily injury and property damage caused by

Answer 29

The operation of mobile equipment is covered.

Question 30

If the client doesn't have commercial auto, they can add

Answer 30

Hired auto and non-owned auto liability coverage by endorsement on the BOP.

Question 31

Hired Autos

Answer 31

Include all autos the insured leases, hires, rents, or borrows but not autos owned by employees, partners, or members of their HH.

Question 32

Non-Owned Autos include

Answer 32

All autos the insured does not own, lease, hire, or borrow which are used in connection with the business, including autos owned by employees, partners or members of their HH.

Question 33

BOP covers the legal liability of the insured for

Answer 33

BI, PD, personal injury, and advertising injury. Fire legal liability is also covered.

Question 34

Supplementary payments in the BOP, in addition to limits, are

Answer 34

Cost of bail bonds, attorney fees, loss of earnings up to $250 a day and accrued interest on judgments, are also included.

Question 35

Declarations show three separate limits of liability:

Answer 35

Combined single limit (CSL), Medical Payments to Others, Fire Legal Liability

Question 36

Combined Single Limit (CSL) for BI and PD and

Answer 36

Medical payments to others on an occurrence basis. Personal injury and advertising injury liability are also covered here, but only on a per person basis.

Question 37

Medical Payments to Others

Answer 37

On a person basis

Question 38

Fire Legal Liability

Answer 38

Applies on a per fire basis

Question 39

Limits on the dec page are subject to aggregate limits as well. Once the aggregate limit has been exhausted

Answer 39

For one-year policy period, other claims will not be paid until the renewal (when the aggregate limit starts over)

Question 40

Some insurers limit their exposure on a BOP in the area of

Answer 40

Products and completed operations by setting a special aggregate limit on those coverages that is only half as much (50%) as the aggregate limit that applies to other liability coverages.