AINS 23 - Segment A Exam Questions with Correct Answers Latest Update 2026/2027
Which one of the following statements is correct with respect to the Building and Personal
Property Coverage Form (BPP)?
Select one:
A. No payments under coverage extensions are made if the limit of insurance in the declarations
is paid in full.
B. Due to coverage extensions, it is possible for the total payment for one loss to exceed the
policy limit.
C. The deductible is subtracted from the policy limit.
D. The policy limit is the maximum the insurer will pay over any one year. - Answers B. Due to
coverage extensions, it is possible for the total payment for one loss to exceed the policy limit.
Which one of the following lists the covered causes of loss (basic, broad, or special); the
deductible amount; and any optional coverages?
Select one:
A. Causes of loss forms
B. Commercial property conditions
C. Commercial property coverage forms
D. Commercial property declarations - Answers D. Commercial property declarations
Which one of the following is a required component of the commercial property coverage part
that specifies the perils covered?
Select one:
A. Commercial property coverage form
B. Causes of loss form
C. Perils specified form
D. Commercial Property Conditions - Answers B. Causes of loss form
,Which one of the following best describes the components of a coverage part for an ISO
Commercial Package Policy (CPP)?
Select one:
A. One or more coverage forms, applicable endorsements, and the duties in the event of a loss
B. One or more coverage forms, applicable conditions, and restatement of the common policy
exclusions
C. Declarations page, one or more coverage forms, and applicable endorsements
D. Declarations page, restatement of the common policy exclusions, and the duties in the event
of a loss - Answers C. Declarations page, one or more coverage forms, and applicable
endorsements
A commercial package policy (CPP) component that covers buildings and business personal
property is referred to as a
Select one:
A. Commercial property coverage part.
B. Building and contents form.
C. Building and Personal Property Coverage Form (BPP) endorsement.
D. Commercial general policy. - Answers A. Commercial property coverage part.
Which one of the following contains an insuring agreement, delineation of the property covered
and not covered, and additional coverages and coverage extensions?
Select one:
A. Supplemental declarations forms
B. Causes of loss forms
C. Commercial property declarations
D. Commercial property coverage forms - Answers D. Commercial property coverage forms
Which one of the following best describes a package modification factor?
,Select one:
A. Any condition or situation that presents a possibility of loss, regardless of whether loss
actually occurs
B. The price per exposure unit for insurance coverage
C. A factor that is applied to the regular policy premiums for certain coverage parts of a CPP,
resulting in premium discounts for those coverage parts
D. A factor that is applied to the regular policy premiums for certain coverage parts of a CPP, to
account for territorial differences - Answers C. A factor that is applied to the regular policy
premiums for certain coverage parts of a CPP, resulting in premium discounts for those
coverage parts
A Commercial Package Policy (CPP) premium may be modified by a package modification
factor. This factor
Select one:
A. Is the same for insurers in all states.
B. Is a discount justified by the greater efficiency in providing a package policy.
C. Is based on the amount of coverage.
D. Provides a charge for coverage extensions. - Answers B. Is a discount justified by the greater
efficiency in providing a package policy.
Generally, more than one causes of loss form is used in a commercial property coverage part
for which one of the following reasons?
Select one:
A. Business personal property, which is more subject to loss, is always insured on a more
restricted basis than are buildings.
B. The underwriter is reluctant to provide the broader coverages for certain types of property.
C. Using multiple causes of loss forms in a single policy is standard industry practice.
D. Most insureds would like to cover their personal effects for loss by theft. - Answers B. The
, underwriter is reluctant to provide the broader coverages for certain types of property.
Which one of the following statements about commercial property coverage forms is correct?
Select one:
A. A commercial property coverage part cannot include more than one commercial property
coverage form.
B. Commercial Property Conditions specify the causes of loss for which the described property
is covered.
C. Specialized coverage forms exist for insuring buildings under construction, condominium
association buildings, and the property of condominium commercial unit owners.
D. Commercial property coverage forms cannot be used to insure the loss of business income. -
Answers C. Specialized coverage forms exist for insuring buildings under construction,
condominium association buildings, and the property of condominium commercial unit owners.
Package modification factors for the Commercial Package Policy (CPP) often
Select one:
A. Specify the endorsements that modify coverage parts in the policy.
B. Provide a premium discount for the insured.
C. Specify that the policy can be changed only by a written endorsement.
D. Provide a method for the insured to transfer rights and duties under the policy. - Answers B.
Provide a premium discount for the insured.
Which one of the following is the correct term for documents that are used to tailor commercial
property coverage to meet the specialized needs of particular insureds or eliminate exposures
that underwriters are not willing to insure?
Select one:
A. Optional exclusion forms
B. Endorsements
C. Supplemental declarations
Which one of the following statements is correct with respect to the Building and Personal
Property Coverage Form (BPP)?
Select one:
A. No payments under coverage extensions are made if the limit of insurance in the declarations
is paid in full.
B. Due to coverage extensions, it is possible for the total payment for one loss to exceed the
policy limit.
C. The deductible is subtracted from the policy limit.
D. The policy limit is the maximum the insurer will pay over any one year. - Answers B. Due to
coverage extensions, it is possible for the total payment for one loss to exceed the policy limit.
Which one of the following lists the covered causes of loss (basic, broad, or special); the
deductible amount; and any optional coverages?
Select one:
A. Causes of loss forms
B. Commercial property conditions
C. Commercial property coverage forms
D. Commercial property declarations - Answers D. Commercial property declarations
Which one of the following is a required component of the commercial property coverage part
that specifies the perils covered?
Select one:
A. Commercial property coverage form
B. Causes of loss form
C. Perils specified form
D. Commercial Property Conditions - Answers B. Causes of loss form
,Which one of the following best describes the components of a coverage part for an ISO
Commercial Package Policy (CPP)?
Select one:
A. One or more coverage forms, applicable endorsements, and the duties in the event of a loss
B. One or more coverage forms, applicable conditions, and restatement of the common policy
exclusions
C. Declarations page, one or more coverage forms, and applicable endorsements
D. Declarations page, restatement of the common policy exclusions, and the duties in the event
of a loss - Answers C. Declarations page, one or more coverage forms, and applicable
endorsements
A commercial package policy (CPP) component that covers buildings and business personal
property is referred to as a
Select one:
A. Commercial property coverage part.
B. Building and contents form.
C. Building and Personal Property Coverage Form (BPP) endorsement.
D. Commercial general policy. - Answers A. Commercial property coverage part.
Which one of the following contains an insuring agreement, delineation of the property covered
and not covered, and additional coverages and coverage extensions?
Select one:
A. Supplemental declarations forms
B. Causes of loss forms
C. Commercial property declarations
D. Commercial property coverage forms - Answers D. Commercial property coverage forms
Which one of the following best describes a package modification factor?
,Select one:
A. Any condition or situation that presents a possibility of loss, regardless of whether loss
actually occurs
B. The price per exposure unit for insurance coverage
C. A factor that is applied to the regular policy premiums for certain coverage parts of a CPP,
resulting in premium discounts for those coverage parts
D. A factor that is applied to the regular policy premiums for certain coverage parts of a CPP, to
account for territorial differences - Answers C. A factor that is applied to the regular policy
premiums for certain coverage parts of a CPP, resulting in premium discounts for those
coverage parts
A Commercial Package Policy (CPP) premium may be modified by a package modification
factor. This factor
Select one:
A. Is the same for insurers in all states.
B. Is a discount justified by the greater efficiency in providing a package policy.
C. Is based on the amount of coverage.
D. Provides a charge for coverage extensions. - Answers B. Is a discount justified by the greater
efficiency in providing a package policy.
Generally, more than one causes of loss form is used in a commercial property coverage part
for which one of the following reasons?
Select one:
A. Business personal property, which is more subject to loss, is always insured on a more
restricted basis than are buildings.
B. The underwriter is reluctant to provide the broader coverages for certain types of property.
C. Using multiple causes of loss forms in a single policy is standard industry practice.
D. Most insureds would like to cover their personal effects for loss by theft. - Answers B. The
, underwriter is reluctant to provide the broader coverages for certain types of property.
Which one of the following statements about commercial property coverage forms is correct?
Select one:
A. A commercial property coverage part cannot include more than one commercial property
coverage form.
B. Commercial Property Conditions specify the causes of loss for which the described property
is covered.
C. Specialized coverage forms exist for insuring buildings under construction, condominium
association buildings, and the property of condominium commercial unit owners.
D. Commercial property coverage forms cannot be used to insure the loss of business income. -
Answers C. Specialized coverage forms exist for insuring buildings under construction,
condominium association buildings, and the property of condominium commercial unit owners.
Package modification factors for the Commercial Package Policy (CPP) often
Select one:
A. Specify the endorsements that modify coverage parts in the policy.
B. Provide a premium discount for the insured.
C. Specify that the policy can be changed only by a written endorsement.
D. Provide a method for the insured to transfer rights and duties under the policy. - Answers B.
Provide a premium discount for the insured.
Which one of the following is the correct term for documents that are used to tailor commercial
property coverage to meet the specialized needs of particular insureds or eliminate exposures
that underwriters are not willing to insure?
Select one:
A. Optional exclusion forms
B. Endorsements
C. Supplemental declarations
