Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
BOP
BUSINESS OWNERS POLICY NY EXAM
| Question | Answer |
|---|---|
| The businessowners policy (BOP | is a prepackaged policy designed to fit the needs of the small to medium business. Instead of selecting the individual's coverages to be insured, the insurance company offers a package of coverage, which includes property and liability. |
| Business liability: | The liability coverage of the businessowners policy is very similar to the CGL policy. One major difference is that this section is included in all policies, and cannot be written on a monoline basis. The BOP liability section has the following features: |
| Business Income Coverage | A union Strike of construction workers causes repair of the insureds building to be delayed for a period of time. |
| customers sues a business for allowing customer to drink too much after dying in a car accident. Is the company liable ? | Yes, The liquor liability exclusion applies only to insureds in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages. In this case, the company’s businessowners policy most likely will have to pay. |
| BOP is similar to | Homeowners |
| Pollutant cleanup and removal | $10,000 / 12 months / 180 days: |
| Civil authority | 72 hours / 4 weeks: |
| Preservation of property — | ommonly called removal coverage, provides 30 days coverage for property that is temporarily removed to protect it from damage. |
| Fire department service charge | The $2,500 limit is included as an additional amount of insurance, unless a different limit is shown in the Declarations |
| Collapse | Collapse of a building is covered if caused by one of the specified causes of loss: hidden decay, insect or vermin, weight of people or property, or use of defective materials if the collapse occurs during construction |
| Water damage, other liquids, powder or molten material damage | If loss or damage is caused by any of these causes of loss, the policy also will pay to tear out and replace any part of the building to make repairs to the system or appliance from which the water or other substance escaped. |
| Business income | Actual loss sustained / 12 months / ordinary payroll — 60 days / 72-hour waiting period: |
| Coinsurance formula | If the property is not insured to 80% of the full replacement value, the policy will pay the greater of actual cash value (ACV) or the coinsurance formula: amount carried ÷ amount that should be carried × amount of loss = amount paid. |
| limited liability | If the named insured is designated as a limited liability company (LLC), the named insured and members are also insureds, but only with respect to the conduct of the business. Managers are insureds, but only with respect to their duties as managers. |
| Insurance Services Office, Inc. (ISO) maintains a list of risks not eligible for consideration for a BOP. | . Financial institutions, auto dealers, and bars and grills are specifically excluded from coverage. |
| Hired and non auto policy | Coverage is provided for liability arising out of the use or maintenance of a hired or nonowned auto. This typically refers to employees' use of their personal autos for business purposes. |
| TRANSFER OF RIGHTS AND DUTIES UNDER THE POLICY | the insured cannot transfer any rights or duties under the policy to any other person or organization without the written consent of the insurance company. |
| BOP TERRITORY | Coverage territory includes the United States of America (including its territories and possessions), Puerto Rico, and Canada. |
| The liberalization clause | states that if a policy is broadened with no additional premium, then the expanded coverage will be automatically applied to all policies of the same type. |
| r the business income additional coverage the waitmg period | er the business income additional coverage, there is no coverage for the first 3 days following the loss. The 72-hour deductible can be reduced by an endorsement for an additional premium. |
| Forgery or alteration coverage | Forgery or alteration coverage in the businessowners policy covers loss due to forgery or alteration of an insured’s check or promissory note. However, the limit is covered only up to $2,500. |
| The businessowners policy (BOP) | is a package policy approach to insurance for business firms that meet the eligibility requirements. The program was introduced in 1976 and has been extensively revised over the years. |
| businessowners policy include the following: | • Office buildings; • Apartments and residential or commercial c • Mercantile, processing and service establishments; • Contractors (such as carpenters, electricians, painters, or plumbers); • Fast-food or limited cooking restaurants; or • Convenien |
| Employers liability | following conditions apply to the liability coverage in addition to the common policy conditions: bankruptcy, duties in event of occurrence, claim or suit, legal action against the insurer, and separation of insured. Employers liability is an exclusion. |
| Extra expenses | are expenses that an organization would not have incurred if the business interruption had not occurred. Examples include additional overtime labor costs or renting a similar building to continue operations, as opposed to waiting until the existing buildi |
| The fire department service charge | covers charges up to $2,500 and is payable in addition to the limit of insurance shown in the declarations and is not subject to any deductible. |
| In the event of a loss, the insured's duties include the following: | promptly notifying the insurer of the occurrence (how, when, where, names and addresses of any injured persons); prompt written notice of a claim; promptly notifying the insurer of any legal papers received related to the loss; and cooperating and assisti |
| The BOP contains a seasonal increase provision what is the % of increase? | that automatically increases the limit of insurance for business personal property by 25% if the actual values exceed the limit of insurance. |
| in a BOP Valuable papers and records means | inscribed, printed or written documents, manuscripts, and records (including abstracts, books, deeds, drawings, films, maps, or mortgages). The term does not mean money or securities. |
| The insurer will pay covered losses or damage to each mortgageholder | ; the mortgageholder has the right to receive loss payment; and if the insurer denies the claim because of the insured's act or because the insured failed to comply with the terms of the policy, the mortgageholder still will have the right to receive loss |
| smoke, pollution rain | are excluded from a BOP Policy |
| CONTRACTORS | ANNUAL PAYROLL J$300,000 ANNUAL SALES 3MIL SUB CON - NO MORE THAN 10% |
| MOTEL | MAX 3 FLOORS NO BARS OR LOUNGES NOT SEASONAL OR CLOSED MORE THAN 30 DAYS |
| APARTMENT BUILDINGS | -RESIDENTIAL OR OFFICE-OCCUPANCY NO MORE THAN 25 K SQ FT -INCIDENTA OCCUPANCY INCIDENT FOR CONTRACTORS NO MORE THAN 7500 SQ FT OR 15 % - |
| OFFICE BUILDING | LESS THAN 100 K SQ FT -NO MORE THAN 6 STORIES TENANTS OCCUPY NO MORE THAN 25 K SQ FT CONTRACTORS OCCUPY NO MORE THAN 7500 SQ 15% |
| NO COVERAGE FOR | HOUSEHOLD PERSONAL PROPERTY |
| RESTAURANTS | 7500 sQ FT -Max seating 75 customers -beer & wine make up 25% of annual sales no liquor is served |
| Gas Stations are disqualified if | they operate a car wash on premises |
| BOP IS FOR WHAT SIZE BUSINESS? | -SMALL TO MEDIUM SIZE -OFFERS LIABILITY PROTECTION -NOT AVAILALBE FOR BARS OR TAVERNS |
| WHOLESALERS & DISTRIBUTORS ARE ELIGIBLE IF.. | 25% IS USED FOR RETAIL LESS THAN 25% OF GROSS L INCOME CAN COME FROM RETAIL SALES |
| DOES BOP OFFER LIABIILTIY PROTECTION? | YES |
| BOP DESIGNED FOR WHAT SIZE BUSINESS? | SMALL 3 MIL ANNUAL SALES NO MORE THAN 25% OFF PREMISES SALES |
| Coverage B | Business Personal Property (Example: office copy Machine, Attached sign, Inventory) |
| Excluded in Coverage A & B | Inxludes Vehicles and Aircraft that are registered, Watercraft while in the water, land lawn crops. |
| Extra Expense Coverage | is included in a BOP with no extra charge. |
| Business Income Coverage | Protects from loss of income caused by property damage starts 72 hours there is a charge |
| Coverage A | Flooring , Floor Coverings Owners Furniture in an apartment that is rented as furnished Building, maintenance |
| BOP provides loss of income on a Actual loos sustained basis for up to ? (how long?) | 12 Months |
| CPP | Once Policy for all needs One Common Dec Page, One Common Conditions Page |
| BOP -Business Owners Package Policy | -Bunders Property , Liab and Income protection in a single pkg -Covers at RC if business is fully insured, ACV if not -A coinsurance clause is not included in a BOP |
| BOP covers | 12 mo - business Income cov & Extra Expense Cov. Inflation Guard for Bldgs & Structures Liab protection for Lawsuites from Accidents or products. slander & copyright protection RC valuation ACV endorsemnt Open Preil Cove (name peril Endor option |
| CPP IS WHAT KINDS OF POLICY | IS AN ELECCTIVE BASED, MULTI LINE "PACKAGE" POLICY W/ A SINGLE, COMBINED DECK PGN & provides both liab & prop cover, (not Workers Comp) |
| BOP adjusts losses on ACV or replacement cost Valuation? | replacement cost valuation for property insured for 80% of value and ACV for less than 80% |
| CPP combines ____or more lines of Commercial Insurance into a single insurance contract. | Two |
| Ia CPP an elective based policy? | Yes |
Created by:
Rosalynww