CISR Insuring Commercial Property Exam: 2026/2027
ACTUAL QUESTIONS WITH CORRECT ANSWERS
• Select the answer that most closely describes Functional Replacement Cost. -✓✓
CORRECT ANSWER: A provision which changes the policy valuation so as to provide
for replacement with a different structure which performs the same service or function,
but is less costly.
• Which of the following statements best defines direct loss? -✓✓ CORRECT
ANSWER: Losses incurred when there is tangible visible damage to the insured's
property.
• Which one of the following does not have an insurable interest in a property? -✓✓
CORRECT ANSWER: Neighboring businesses
• Select the answer that most closely describes Replacement Cost. -✓✓ CORRECT
ANSWER: Insurance issued in an amount to cover the property described for a limit that
will be adequate to replace the structure at the cost of today's labor and materials.
• Which one of these statements best describes Coinsurance? -✓✓ CORRECT
ANSWER: A contractual promise to carry an amount of insurance equal to, or greater
than, a fixed percent of the current value of the property. Failure to comply results in a
penalty.
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
What amount of insurance is required to comply with the coinsurance provision? -✓✓
CORRECT ANSWER: $240,000
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
How much will the policy pay? -✓✓ CORRECT ANSWER: $37,500
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
,What amount of insurance is required to comply with the coinsurance provision? -✓✓
CORRECT ANSWER: $400,000
• What amount of insurance is required to comply with the coinsurance provision, and
how much will the policy pay?
Building Value (at time of loss) $100,000 Policy Limit $80,000
80% Coinsurance Clause Loss amount $15,000 -✓✓ CORRECT ANSWER: $80,000;
$15,000
• Using the values listed below, answer the coinsurance problem. Ignore deductibles.
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
Did the insured comply with the coinsurance provision? -✓✓ CORRECT ANSWER: No
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
Did the insured comply with the coinsurance provision? -✓✓ CORRECT ANSWER: Yes
• Which of the following statements best defines and summarizes all the features of
Agreed Value? -✓✓ CORRECT ANSWER: An option in the Commercial Property policy
which suspends the coinsurance clause. The insured is required to file a statement of
values with the insurance company; the company must agree with the values filed. The
policy is written at the agreed value, and then the coinsurance clause is suspended for
one year only, not to extend beyond the policy expiration date.
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
How much will the policy pay? -✓✓ CORRECT ANSWER: $37,500
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
Did the insured comply with the coinsurance provision? -✓✓ CORRECT ANSWER: Yes
, • Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
What amount of insurance is required to comply with the coinsurance provision? -✓✓
CORRECT ANSWER: $240,000
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
What amount of insurance is required to comply with the coinsurance provision? -✓✓
CORRECT ANSWER: $400,000
• What amount of insurance is required to comply with the coinsurance provision, and
how much will the policy pay?
Building Value (at time of loss) $100,000 Policy Limit $80,000
80% Coinsurance Clause Loss amount $15,000 -✓✓ CORRECT ANSWER: $80,000;
$15,000
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
How much will the policy pay? -✓✓ CORRECT ANSWER: $240,000
• Which one of these statements best describes Coinsurance? -✓✓ CORRECT
ANSWER: A contractual promise to carry an amount of insurance equal to, or greater
than, a fixed percent of the current value of the property. Failure to comply results in a
penalty.
• Which of the following statements best defines and summarizes all the features of
Agreed Value? -✓✓ CORRECT ANSWER: An option in the Commercial Property policy
which suspends the coinsurance clause. The insured is required to file a statement of
values with the insurance company; the company must agree with the values filed. The
policy is written at the agreed value, and then the coinsurance clause is suspended for
one year only, not to extend beyond the policy expiration date.
• Using the values listed below, answer the coinsurance problem. Ignore deductibles.
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
ACTUAL QUESTIONS WITH CORRECT ANSWERS
• Select the answer that most closely describes Functional Replacement Cost. -✓✓
CORRECT ANSWER: A provision which changes the policy valuation so as to provide
for replacement with a different structure which performs the same service or function,
but is less costly.
• Which of the following statements best defines direct loss? -✓✓ CORRECT
ANSWER: Losses incurred when there is tangible visible damage to the insured's
property.
• Which one of the following does not have an insurable interest in a property? -✓✓
CORRECT ANSWER: Neighboring businesses
• Select the answer that most closely describes Replacement Cost. -✓✓ CORRECT
ANSWER: Insurance issued in an amount to cover the property described for a limit that
will be adequate to replace the structure at the cost of today's labor and materials.
• Which one of these statements best describes Coinsurance? -✓✓ CORRECT
ANSWER: A contractual promise to carry an amount of insurance equal to, or greater
than, a fixed percent of the current value of the property. Failure to comply results in a
penalty.
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
What amount of insurance is required to comply with the coinsurance provision? -✓✓
CORRECT ANSWER: $240,000
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
How much will the policy pay? -✓✓ CORRECT ANSWER: $37,500
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
,What amount of insurance is required to comply with the coinsurance provision? -✓✓
CORRECT ANSWER: $400,000
• What amount of insurance is required to comply with the coinsurance provision, and
how much will the policy pay?
Building Value (at time of loss) $100,000 Policy Limit $80,000
80% Coinsurance Clause Loss amount $15,000 -✓✓ CORRECT ANSWER: $80,000;
$15,000
• Using the values listed below, answer the coinsurance problem. Ignore deductibles.
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
Did the insured comply with the coinsurance provision? -✓✓ CORRECT ANSWER: No
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
Did the insured comply with the coinsurance provision? -✓✓ CORRECT ANSWER: Yes
• Which of the following statements best defines and summarizes all the features of
Agreed Value? -✓✓ CORRECT ANSWER: An option in the Commercial Property policy
which suspends the coinsurance clause. The insured is required to file a statement of
values with the insurance company; the company must agree with the values filed. The
policy is written at the agreed value, and then the coinsurance clause is suspended for
one year only, not to extend beyond the policy expiration date.
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
How much will the policy pay? -✓✓ CORRECT ANSWER: $37,500
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
Did the insured comply with the coinsurance provision? -✓✓ CORRECT ANSWER: Yes
, • Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
What amount of insurance is required to comply with the coinsurance provision? -✓✓
CORRECT ANSWER: $240,000
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
What amount of insurance is required to comply with the coinsurance provision? -✓✓
CORRECT ANSWER: $400,000
• What amount of insurance is required to comply with the coinsurance provision, and
how much will the policy pay?
Building Value (at time of loss) $100,000 Policy Limit $80,000
80% Coinsurance Clause Loss amount $15,000 -✓✓ CORRECT ANSWER: $80,000;
$15,000
• Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
How much will the policy pay? -✓✓ CORRECT ANSWER: $240,000
• Which one of these statements best describes Coinsurance? -✓✓ CORRECT
ANSWER: A contractual promise to carry an amount of insurance equal to, or greater
than, a fixed percent of the current value of the property. Failure to comply results in a
penalty.
• Which of the following statements best defines and summarizes all the features of
Agreed Value? -✓✓ CORRECT ANSWER: An option in the Commercial Property policy
which suspends the coinsurance clause. The insured is required to file a statement of
values with the insurance company; the company must agree with the values filed. The
policy is written at the agreed value, and then the coinsurance clause is suspended for
one year only, not to extend beyond the policy expiration date.
• Using the values listed below, answer the coinsurance problem. Ignore deductibles.
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
