WPCI Washington Property and Casualty Insurance Exam - Set 4 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: The business auto coverage form insures the private-passenger and commercial auto exposures of nearly all businesses, but three specialized operations must use their own dedicated forms instead. Which three types of businesses are excluded from the standard business auto form?

Garages, truckers, motor carriers

Offices, retailers, apartments

Contractors, wholesalers, restaurants

Schools, churches, charities

Question 42: A small retailer wants a single prepackaged contract that automatically bundles property and liability coverage for its business, working much like a homeowners policy does for individuals, without assembling separate forms. Which policy is designed for this kind of small business?

Commercial package policy

Monoline property policy

Businessowners policy

Commercial umbrella policy

Question 43: An underwriter reviews common businessowners policy eligibility guidelines, which typically limit employee counts, occupied square footage, and annual revenues before a risk qualifies. Among the usual criteria, what is the common maximum annual revenue figure a business generally may not exceed?

One million dollars

Three million five hundred thousand

Seven hundred fifty thousand

Six million dollars

Question 44: A businessowners policy pays to replace or restore electronic data destroyed or corrupted by a covered cause of loss, and the owner wants to know the most the additional coverage pays for all such loss in any one policy year. What is that amount?

Ten thousand dollars

Two thousand five hundred dollars

Five hundred dollars

Twenty-five thousand dollars

Question 45: A businessowners policy provides property coverage that responds to any direct physical loss unless it is specifically excluded or limited by the policy, and an endorsement can convert it to a named-peril basis if desired. On what basis is BOP property written?

Basic named peril

Open peril basis

Broad named peril

Scheduled peril only

Question 46: Under a businessowners policy, a fire department responds to protect covered property from a covered cause of loss, and the owner asks the standard additional coverage limit for that fire department service charge. What is the businessowners policy standard amount?

One thousand dollars

Five hundred dollars

Two thousand five hundred dollars

Ten thousand dollars

Question 47: A pizza shop has no commercial auto policy, and its owner worries about liability when an employee crashes their own car while making a delivery for the business. Which businessowners endorsement covers the business for hired and nonowned auto liability?

Hired and nonowned auto liability

Drive other car endorsement

Garagekeepers coverage endorsement

Bobtail liability endorsement

Question 48: A businessowners policy offers optional employee dishonesty coverage, and the insurer will not pay for a loss discovered more than a set time after the policy period ends. What is that discovery period beyond which a dishonesty loss is not paid?

Six months

One year

Ninety days

Three years

Question 49: A businessowners policy carries two liability aggregates, one for products-completed operations and a general aggregate for other injury and damage, and both are set relative to the declared liability and medical expenses limit. How large is each aggregate compared with that limit?

Equal to the limit

One-half the limit

Three times the limit

Two times the declared limit

Question 50: A consulting firm wants a businessowners policy but learns that certain exposures simply are not available under a BOP and must be insured elsewhere, since the form excludes liability arising from rendering or failing to render professional services. Which coverage must be obtained separately?

Business personal property coverage

Personal and advertising injury

Professional liability coverage

Business income coverage

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