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
Comm. Package Policy
Arizona Independent Insurance Adjusters Exam
| Question | Answer |
|---|---|
| The insurer reserves the right to cancel a policy if an insured property has been vacant or unoccupied for __ or more days. | 60 |
| Under the BOP, properties with more than __ of rental units unoccupied, or with over __ of the floor space vacant, can be considered “vacant” properties. | 65% |
| All policy changes must be added by _____. | endorsement |
| The insurer has the right to inspect the books and records of the insured for up until__years after the policy expires. | 3 |
| Liberalization allows, within a __ day window, an insured party to automatically adopt any broadened insurance coverage provided by an insurer assuming there is no increase in the cost of the premium. | 45 |
| The BOP policy provides protection on an ____ ____ basis , similar to the Causes of Loss- Special Form we’ve discussed previously in this text. Generally speaking, all losses are covered unless specifically excluded from coverage. | open-peril |
| The ____ ______ adds perishable stock to covered property, and provides insurance protection against spoilage of such stock due to mechanical breakdown of refrigeration equipment, contamination by refrigerants, or the loss of electrical power. | spoilage endorsement |
| For businesses that do not carry any form of commercial auto insurance, the ___ ____ ____ _____ ______ provides liability protection for damages caused by hired or non-owned auto accidents that occur on company business. | hired and non-owned liability endorsement |
| The ____ ____ ___ adds a condition of coverage to a policy requiring that any one or a multitude of protective devices must be operational in order for the coverage to apply. In return, the insured receives a premium discount. | protective safeguard endorsement |
| A ___ ____ ____ combines two or more lines of commercial insurance into a single insurance contract. | commercial package policy (CPP) |
| Commercial package policies are _____ _____, meaning businesses can choose to package whichever insurance lines apply to their insurance needs. | elective based |
| Small- to- medium sized businesses frequently purchase a specific type of commercial package policy called a ____ ___ ____. | Business owners Policy (BOP) |
| A BOP provides essential property and liability insurance coverage for businesses on an ____ ____ basis, and offers replacement cost valuation for property losses if the business insures 80% to value. | open-peril |
| Jim has commercial liability insurance with ABC Insurance, commercial property insurance with XYZ Insurance, and business auto insurance with MNO Insurance. Why might Jim choose to combine all his policies with one insurer? | Jim could reduce his premiums if he purchased all his insurance products from one company. |
| An accounts receivable extension to the BOP would provide indemnification to the insured for: | uncollectible receipts due to damaged records |
| XYZ Bridge Construction contacts ABC Insurance and inquires about purchasing a BOP policy. ABC Insurance informs XYZ Bridge Construction that they would not qualify for the BOP. What was most likely the basis for ABC Insurance's decision? | BOP's do not apply to businesses involved in heavy construction. |
| Which of the following is not an advantage of a CPP? | A CPP decreases risk for the insurer. |
| As a general benchmark, BOP's are intended for small to medium-sized businesses with less than _____ ____ in annual revenues. | 3 Million |
| Jane owns an aquarium supplies store and purchases a business owner's policy to protect her assets. Which of the following protections can Jane expect from her standard business owner's policy with no endorsements? | Extra Expense Coverage |
| Which policy condition of a BOP might allow Don's insurer to deny a claim for leave a building unattended for 3 months? | vacancy condition- A building left vacant for 60 consecutive days is subject to certain insurance coverage suspensions as identified in the contract conditions. |
| Power shuts off due to a lightning strike at the supplying power station just down the street. For three days Business is closed. Which endorsement might provide indemnification to Sam's Dry Cleaners for the loss of business? | The correct answer is "Utility Services--Time Element." A Utility Services--Time Element endorsement provides coverage to losses resulting from damage to a supplying utility provider. |
| A standard BOP offers _____ ____ ____ as an additional coverage at no extra charge. | Preservation of property- an additional coverage offered by the BOP to permit the insured to protect property from further damage. |
| Peter lies about his criminal history by leaving out his conviction for arson. Sure enough, 14 months later, Peter's cafe burns down. Under what policy condition can Peter's insurer deny his claim? | Concealment- voids coverage if the insured misrepresents, distorts, or conceals any materially relevant facts or information on an application for an insurance policy. |
| In regards to providing insurance for office buildings, most BOP policies require a building to be _____ or less stories in height. | six (6) |
| The __ does not provide professional liability for doctors, lawyers or pharmacists, who must purchase separate professional liability policies. | BOP |
| The BOP prohibits ____ _____ from operating car washes, auto repair facilities, or kerosene filling stations. | convenience stores |
Created by:
ajramirez1969
Popular Insurance sets