Term
| What is the two standard policy forms for commercial packages? |
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Definition
| Commercial Pkg Policy & Business Owner Policy |
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Term
| All classes of risk are eligible for CCP except which? |
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Definition
| Those available for homeowners, aviation, surety, health, ocean marine, & workmens compensation |
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Term
| Under the BP what is the limitation for permitted incidental occupancies for apartments & residential condo? |
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Definition
| Not over 6 stories, permitted incidental occupancies cannot exceed 100,000 square feet in a single building |
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Term
| What is the limitation for trade contractors? |
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Definition
| single specialty, building or tenant cannot exceed 25,000 square feet gross sales do not exceed $3,000,000 No work over 3 stories subcontract 10% or less & gross payroll to not exceed $300,000 |
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Term
| What is the square foot limitation and gross sales limitation for mercantile, wholesale & processing risks under the BP? |
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Definition
| 25,000 square feet Sales not to exceed $3,000,000 less than 25% gross sales off premises |
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Term
| Can a general contractor be covered under a BP |
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Definition
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Term
| Under the BP for restaurants what does "limited cooking" mean? |
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Definition
| Food preparation does not emit enough smoke or grease vapors to require exhaust system or dry chemical extinguishing system |
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Term
| What are the two forms available under the BP |
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Definition
| All perils or basic (named perils) |
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Term
| Under the BP property, how are losses settled? |
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Definition
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Term
| What is the limitation for outdoor property under the BP? |
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Definition
| $2,500 Aggregate no more than $500 for any one tree shrub or plant |
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Term
| What is the built in percentage for inflation guard under the BP? |
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Definition
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Term
| Under the BP which classes of personal property are at ACV in lieu of RC? |
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Definition
| Household contents, property of others, used goods, manuscripts & works of art or antiques that specifically valued ACV |
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Term
| What is the limitation for personal property other than money/securities? |
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Definition
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Term
| What is the on premises limitation for valuable papers/records? |
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Definition
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Term
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Definition
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Term
| What is the loss of income provision in the BP? |
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Definition
| up to 12 mos of interruption, with no dollar limit |
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Term
| What are the limits available under BP for employee dishonesty? |
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Definition
| $5,000, $10k, $25k, $50k, or $100k per occurr |
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Term
| What is the minimum liability limit available under the BP? |
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Definition
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Term
| What limits of fire legal liability are available under the BP? |
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Definition
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Term
| Commercial Package Policy - Which of the following can be written as part of a Commercial Package Policy? |
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Definition
a. Commercial Property
b. Boiler and Machinery
c. Farm
d. Commercial Inland Marine
e. Commercial Crime
f. Business owners
g. Commercial Auto
Answer a,b,c,d,e, & g |
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Term
| The form which must be attached to a CPP and contains conditions that apply to all coverages provided is the ? |
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Definition
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Term
| What two types of property are covered under the Business owner Policy? |
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Definition
| Buildings & Business Personal Property |
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Term
| What two types of coverage are provided under the Business owners policy in addition to property coverage? |
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Definition
| Liability & Medical Payments |
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Term
| For the commercial package policy which of the following are the two standard Policy Forms? |
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Definition
a. Standard and Special
b. Basic and Special
c. Commercial Package Policy and Business owners Policy
d. None of the above
Answer c |
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Term
| All classes of risk are eligible for the CPP except which? (most correct) |
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Definition
a. Single family dwellings
b. Apartment buildings
c. 1-4 family dwellings
d. Those that are eligible for homeowners insurance
Answer d |
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Term
| Under the business owners policy which is not eligible? |
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Definition
a. Apartment houses, residential condos
b. Offices and office condos not over six stories, not over 100,000 square.
c. Limited-cooking and fast food restaurants
d. Roofers, general contractors
Answer d |
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Term
| Definition of Trade Contractors; work is primarily a single specialty, building or tenant does not exceed 25,000 square feet, gross sales do not exceed $3,000,000, no more than $300,000 payroll, no work over 3 stories, subcontracted work 10% or less. |
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Definition
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Term
| Which of the following coverage forms are available under the BP? |
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Definition
a. Causes of Loss Form - Basic
b. Causes of Loss Form - Broad
c. Causes of Loss Form - Special
d. Both Basic and Special Forms
Answer d |
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Term
| Under the BP which is most correct as to valuation of property? |
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Definition
a. Replace with like kind or quality
b. Replacement cost
c. Actual cash value
d. Coinsurance clause applies
Answer b |
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Term
| Which is most correct as to the limitation for Business Income and Extra Expense? |
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Definition
a. Must be added by endorsement
b. 25% monthly limitation
c. 80% coinsurance applies
d. Includes at no dollar limit up to 12 months coverage
Answer d |
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Term
| Which is most correct as to the limitation for debris removal under the BP? |
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Definition
a. 10% of covered property up to the coverage limit
b.25% of covered property
c. 25% of the loss up to policy limit + $10,000
d. none of the above
Answer c |
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Term
| Which of the following are not automatically covered under additional coverages? |
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Definition
a. Fire department service charge - $1,000
b. Extended business income - 30 Days
c. Pollutant Clean up and Removal $10,000
d. Employee dishonesty
Answer d |
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Term
| Which of the following are automatically covered under additional coverages? |
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Definition
a. Outdoor signs
b. Mechanical Breakdown
c. Forgery or alternation $2,500
d. Money & securities
Answer c |
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Term
| Which is most correct about inflation guard in the BP? |
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Definition
a. Can be added by endorsement
b. 8% and can be increased
c. 8% and cannot be increased
Answer b |
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Term
| Which is most correct limit for valuable papers & records, accounts receivable on & off premises? |
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Definition
a. $10,000 on $5,000 off
b. $5,000 on $5,000 off
c $10,000 on $5,000 off valuable papers & record, $5,000/$5,000 accts receivable |
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Term
| Which is most correct as to outdoor property under the BP? |
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Definition
a. $1,000 but not more than $250 anyone tree shrub or plant
b. $2,000 but not more than $500 anyone tree, shrub or plant
c. $2,500 but not more than $500 anyone tree, shrub or plant
d. No coverage
Answer c |
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Term
| Which is correct about replacement cost loss settlement under the BOP? |
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Definition
a. coverage is automatic if limit carried meets co-insurance minimums
b. coverage is automatic
c. coverage applies to all property eligible for coverage under the BOP
d. coverage is for full Replacement Cost less depreciation
Answer b. |
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Term
| Which of the following is eligible for a BOP? |
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Definition
a. amusement arcades
b. bank or financial institution
c. bar/no cooking/no dancefloor/sales under $3,000,000
d. none of the above
Answer d. |
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Term
| Which is the following is not contained in a BOP policy? |
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Definition
a. Inflation guard of 8% is automatically included
b. 30 Days automatic coverage on property at a new location up to $100,000
c. A coinsurance clause based on 100% of last years values (inventory)
d. coverage provides for RC loss settlement
Answer b |
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Term
| What are the two BOP Policy forms called? |
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Definition
a. Open perils and Basic
b. Comprehensive and Limited
c. Broad and Special
d. Basic and broad
Answer a |
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Term
| Which coverage/s would be included under a BOP policy? |
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Definition
a. preservation of property/60 days at temporary location
b. Fire Department Service Chg/$500
c. Business Income from dependent properties/$5,000
d. Debris Removal/25% of loss/subject to the policy limit/+ additional $20,000
Answer c |
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Term
| Which is correct about loss of income under the BOP form? |
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Definition
a. coverage is not included but may be added by endorsement
b. coverage is included with no limit in time or money
c. Coverage is included but only up to the policy limit
d. Coverage is included with no limit for losses and up to 12 mos
Answer d |
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Term
| Which of the following is correct about the BOP liability? |
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Definition
a. a general aggregate limit is twice the per occurrence limit
b. one aggregate limit applies to all BOP coverages
c. coverage for hired and non owned autos is not available under the BOP
d. Professional liability is included for all eligible classes
Answer a |
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Term
| The insured's BOP liability limit is $500,000 per occur. In February he has a $300,000 loss. In March he has a $600,000 loss. In April he has a $500,000 loss. Which of the following is correct? |
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Definition
a. February loss paid in full/March $500k/April loss in full
b. February loss paid in full/March paid in full/$100k left for April
c. February loss paid in full/March $500k/April $200k
d. all 3 losses are paid in full
Answer c |
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Term
| The insured has an apartment building valued at $500,000 and covered for that amount. He sustains a $450,000 fire loss. During reconstruction $150,000 in rental income is lost. How much can he collect from the policy? |
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Definition
a. $600,000
b. $500,000
c. $450,000
d. none of the above are correct
Answer a |
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Term
| Which is not eligible for packaging under CPP? |
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Definition
a. truckers insurance
b. commercial general liability
c. boiler machinery
d. commercial aviation
Answer d. |
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Term
| In a $80,000 BOP policy if a covered loss of $20,000 occurs but the damaged property has an ACV value of $15,000 how much will be paid under the policy? |
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Definition
a. ACV at the time of the loss
b. $16,000
c. $20,000
d. $15,000
Answer c |
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Term
| Which is not an optional coverage under a BOP Policy? |
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Definition
a. employee dishonesty
b. mechanical breakdown
c. exterior signs
d. inflation guard
Answer d |
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Term
| Which of the following would not be eligible for a BOP policy? |
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Definition
a. apartment houses
b. residential condominiums
c. commercial general contractor
d. office and condo assn
Answer c |
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Term
| Coverage for income loss includes which of the following? |
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Definition
a. actual loss sustained up to the policy limit
b. actual loss sustained for up to 12 mos
c. not included but available as an option
d. actual loss sustained with no limit on time
Answer b |
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Term
| Last year the insured's average monthly values were $100,000. Values are the same this year and he carried $100,000 BOP Coverage. IF there was a total loss from a covered peril how much the insured collect from the policy? |
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Definition
a. $100,000
b. $125,000
c. $80,000
d. $72,000
Answer b |
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Term
| Which is not available under the BOP Liability Coverage? |
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Definition
a. $1,000,000
b. $300,000
c. $100,000
d. $500,000
Answer c |
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Term
| Which is correct about a commercial package policy (CPP)? |
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Definition
a. 3 or more coverage parts are needed to make a package policy
b. coverages under the CPP or the same individual forms are identical coverages
c. a CPP has separate Declarations for each form included
d. homeowners coverage is eligible for inclusion in the CPP
Answer b |
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Term
| Last year the insured's average monthly values were $100,000. Values are the same this year and he carries $80,000 BOP coverage. If there was a total loss from a covered peril how much could he collect from the policy? |
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Definition
a. $100,000
b. $72,000
c. $80,000
d. $64,000
Answer c |
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Term
| Which of the following is eligible for a BOP? |
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Definition
a. mercantile risks with sales less than $3,000,000
b. Office buildings not under $100,000 square feet
c. apartment houses with not less than 25,000 square feet permitted for incidental occupancies
d. a full service restaurant
Answer a |
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Term
| Which is correct if the BOP liability per occurrence limit is $300,000 |
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Definition
a. Products Aggregate is $600,000 and General Aggregate is $600,000
b. All coverages are subject to one combined aggregate of $300,000
Answer a |
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Term
| On the BP if the coverage is not insured to value, how will a loss be settled? |
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Definition
a. Replacement cost coinsurance does not apply
b. Coinsurance applies, insured will suffer coinsurance penalty
c. Actual Cash Value
Answer b |
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Term
| Under the BP which of the following is most correct about employee dishonesty? |
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Definition
a. Optional coverage up to $100,000 available
b. Automatically included for $100,00 blanket
c. Not available on the BP
Answer a |
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Term
| Under the BP which is most correct as to the limit of liability available? |
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Definition
a. $300,000 is the minimum limit, cannot be increased
b. $100,000 is the minimum limit but can be increased
c. $300,000 is the minimum limit, but can be increased
d. Insured selects limit of liability
Answer c |
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Term
| Which is the most correct as to the aggregate limit on the BP? |
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Definition
a. No aggregate applies
b. Aggregate is 2 - times occurrence limit
c. Aggregate is the same as the occurrence limit
d. Aggregate is the occurrence limit plus the prod/comp ops limit
Answer b |
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