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AINS 103 (New 2023/ 2024 Update) Exploring Commercial Insurance Exam Review _ Questions and Verified Answers_ 100% Correct_ Graded A QUESTION Je nn is a producer for Goshen Mutual. She is trying to determine if a new prospect, Mr. Cooper's Café is eligible for the businessowners policy (BOP). Mr. Cooper's Café is a small restaurant located on the first floor of an office building, serving only breakfast and lunch. Cooking on the premises is limited to coffee makers, a grill, and microwave appliances. It has seating for 10-15 people, and large refrigerated cases with food, beer and wine to-go. Which one of the following factors about Mr. Cooper's Café would make it ineligible for BOP coverage? Answer: C. It sells beer and wine. QUESTION Hank is a new commercial insurance producer. He is walking down the main street of Springfield trying to determine which businesses might be eligible for the businessowners policy (BOP) and which would not be eligible. Which one of the following main street businesses would be ineligible for BOP coverage? Answer: D. Springfield Bank QUESTION Which one of the following statements about the BOP is true? Answer: A. It is designed for small to mid-sized business. QUESTION Springer's Attire is insured under an unendorsed businessowners policy (BOP). The building suffered significant damage when it was struck by lightning. Building codes require that the building must be brought into compliance with current code when the repair work is done. Bringing the building into compliance with current codes will increase the cost of the repair by $50,000. Which one of the following correctly explains how Springer's Attire's BOP will respond to the loss? Answer: B. The additional $50,000 would not be fully covered. The Ordinance or Law exclusion eliminates coverage for the cost to upgrade the building to current building codes and ordinances after a loss. QUESTION Rose's Flower Shop has its building and business personal property insured under a businessowners policy (BOP). The building was struck by lightning and the resulting fire caused significant damage to both the building and personal property. Which one of the following would be excluded under the BOP? Answer: C. The cost of upgrades due to local ordinances QUESTION The Neopolitan is insured under a businessowners policy (BOP) for both building and business personal property. Which one of the following would be covered under the definition of a building under The Neopolitan's BOP? Answer: D. The outdoor lighting fixtures QUESTION The medical expense coverage under Business