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19 Cards in this Set
- Front
- Back
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Business Owners Policies (BOPs) |
Insure eligible small to midsize businesses against most of their property and liability loss exposures |
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What major loss exposure is not covered by BOP? What is an exception? |
Doesnt cover Commercial auto for intended autos DOES provide hired and non owned auto coverage |
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What 2 criteria are BOP eligibility rules based on? |
1. Business size 2. Complexity of loss exposures |
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What are the limits of business size for BOPs? |
35,000 sq ft or $6 million in annual gross sales at each location |
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6 Variables in the BOP rating |
Territory Construction type Public fire protection Occupancy Sprinkler presence Deductible |
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6 Major Property Differences between BOP and ISO Commercial Property Coverage |
Covered COL and Valuations provisions No coinsurance Less property not covered Automatic seasonal increase provision Business income and extra expense coverage included Other property coverages |
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2 Versions of BOP coverages |
Named Perils Special Form (default) |
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Standard valuations for BOP and BPP |
BOP - replacement cost BPP - ACV |
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Automatic Seasonal Increase Provision |
Provided an insured carries 100% of its average monthly person all property value for 12 months preceding the loss, the business personal property limit automatically increases by 25% |
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How is business income and extra expense included for BOPs and commercial package policies? |
BOPs - included automatically Commercial package - separate form |
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Dependent property coverage |
Insures against a business income loss sustained because of physical loss/damage by a covered COL at the premises of a dependent property not in insured's possession Ex: "anchor" store in a shopping mall |
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3 types of limits for both BOPs and CGLs |
Each Occurrence, General Aggregate, Products/Completed Operations Aggregate |
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General Aggregate limit of BOPs |
2x each occurrence limit, Max $2 mil/occurrence |
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Products/Completed Operations Aggregate of BOPs |
Equal to Each Occurrence limit |
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A major difference between BOP and CGL professional liability coverage |
BOPs can be endorsed to cover professional liability exposures of specified insureds |
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How do ISO farm insurance forms accommodate both family operated and agribusiness farm coverage? |
Family operated - include from covering residential property Agribusiness - Farm Dwelling form omitted |
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4 parts to Farm Property forms |
A - Dwellings B - Other private structures appurtenant to dwellings C - Household personal property D - Loss of use |
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What 2 extra coverages are in the Farm Property - Farm Personal Property Coverage Form? |
E - Scheduled farm personal property F - Unscheduled farm personal property |
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6 Main differences between BOP and CGL Coverage Forms |
COL in BOP offered on broad or special form, Replacement cost valuation for BOP, Insurance to value requirements or no coinsurance, Fewer items on property not covered provisions, Automatic seasonal increase, Business income and extra expense coverage automatically included with no dollar limit |
