CIC COMMERCIAL PROPERTY CORRECT FINAL
EXAMS QUESTIONS AND ANSWERS SURE A+
✔✔Difference in conditions policy - ✔✔non-filed policy that is written to cover gaps in
between policies that do not cover specific causes of loss
ex: fills in the gaps between earthquake coverage policy and the endorsement
✔✔Governmental action- Exclusion - ✔✔no coverage unless the destruction is ordered
to prevent the spread of fire
✔✔Nuclear Hazard- exclusion - ✔✔no coverage except for ensuing fire
endorsement available:
Radioactive contamination (can be attached to basic, broad, and special causes of loss
forms)
✔✔utility services-exclusion - ✔✔basically will not pay for utility service issues unless its
a result of a covered cause of loss
endorsements available:
, Utility Services-Direct Damage
provides coverage to covered property described in the schedule
Spoilage coverage
✔✔war and military action- exclusions - ✔✔war including undeclared or civil war
warlike action by military force
✔✔Water-exclusions - ✔✔no coverage for loss or damage caused by water because
you need flood policy,,, could fill in with a DIC policy
and sewer drain and sump pump endorsement
✔✔flood coverage endrosement - ✔✔address some of the coverage gaps left by the
NFIP, must have an NFIP policy to have this endorsement
✔✔fungus, wet & Dry rot and bacteria-exclusion - ✔✔no coverage, unless:
1. coverage applies if loss or damage results from fire or lightning or specified cause of
loss( WCSHAVER)
2. other than fire or lightning to the extent of the limited coverage for fungus in additional
coverages
✔✔Concurrent Causation Exclusions - ✔✔a. artificially generated electrical magnetic or
electromagnetic energy
b. delay, loss or use or loss of market
c. smoke, vapor, or gas
d. typical open peril exclusions
e. explosion of steam apparatus, etc.
g. freezing of plumbing
h. dishonest or criminal acts by specific individuals
f. seepage or leakage of water
i. false pretense
j. rain snow sleet-personal property in the open
k. collapse
l. damage caused by pollutants
m. neglect to save and preserve property
✔✔artificially generated energy- concurrent causation exclusions - ✔✔no coverage for
loss or damage to or interference with electrical devices that utilize cellular or satellite
technology when cause by artificially generated electrical magnetic or electromagnetic
energy except for ensuing fire
✔✔endorsements for artificially generated energy exclusion - ✔✔equipment breakdown
-adds breakdown of covered equipment to the list of covered causes of loss
equipment breakdown protection coverage form
-provides similar coverage but under a separte coverage part
EXAMS QUESTIONS AND ANSWERS SURE A+
✔✔Difference in conditions policy - ✔✔non-filed policy that is written to cover gaps in
between policies that do not cover specific causes of loss
ex: fills in the gaps between earthquake coverage policy and the endorsement
✔✔Governmental action- Exclusion - ✔✔no coverage unless the destruction is ordered
to prevent the spread of fire
✔✔Nuclear Hazard- exclusion - ✔✔no coverage except for ensuing fire
endorsement available:
Radioactive contamination (can be attached to basic, broad, and special causes of loss
forms)
✔✔utility services-exclusion - ✔✔basically will not pay for utility service issues unless its
a result of a covered cause of loss
endorsements available:
, Utility Services-Direct Damage
provides coverage to covered property described in the schedule
Spoilage coverage
✔✔war and military action- exclusions - ✔✔war including undeclared or civil war
warlike action by military force
✔✔Water-exclusions - ✔✔no coverage for loss or damage caused by water because
you need flood policy,,, could fill in with a DIC policy
and sewer drain and sump pump endorsement
✔✔flood coverage endrosement - ✔✔address some of the coverage gaps left by the
NFIP, must have an NFIP policy to have this endorsement
✔✔fungus, wet & Dry rot and bacteria-exclusion - ✔✔no coverage, unless:
1. coverage applies if loss or damage results from fire or lightning or specified cause of
loss( WCSHAVER)
2. other than fire or lightning to the extent of the limited coverage for fungus in additional
coverages
✔✔Concurrent Causation Exclusions - ✔✔a. artificially generated electrical magnetic or
electromagnetic energy
b. delay, loss or use or loss of market
c. smoke, vapor, or gas
d. typical open peril exclusions
e. explosion of steam apparatus, etc.
g. freezing of plumbing
h. dishonest or criminal acts by specific individuals
f. seepage or leakage of water
i. false pretense
j. rain snow sleet-personal property in the open
k. collapse
l. damage caused by pollutants
m. neglect to save and preserve property
✔✔artificially generated energy- concurrent causation exclusions - ✔✔no coverage for
loss or damage to or interference with electrical devices that utilize cellular or satellite
technology when cause by artificially generated electrical magnetic or electromagnetic
energy except for ensuing fire
✔✔endorsements for artificially generated energy exclusion - ✔✔equipment breakdown
-adds breakdown of covered equipment to the list of covered causes of loss
equipment breakdown protection coverage form
-provides similar coverage but under a separte coverage part
