CIC COMMERCIAL PROPERTY ACTUAL
TEST QUESTIONS WITH COMPLETE
ANSWER KEY
●● Common policy dec info
Answer: 1. Eff date
2. Named insured
3. Description of premises
4. Coverages provided (building, bpp, business income; limit of
insurance; covered causes of loss-by item; coinsurance, rates)
●● What is the coinsurance equation?
Answer: (Amount carried/ amount required) x loss = recovery minus
deductible equals settlement
●● Optional coverages
Answer: Replacement cost & agreed value
●● CPP conditions
Answer: 1. Concealment misrepresentation or fraud
2. Control of property
3. Insurance under two or more coverages
,4. Legal actions against us
5. Liberalization
6. No benefit to bailee (waiver of subrogation)
7. Other insurance
8. Policy period coverage territory
●● Transfer of Rights of Recovery Against Others to Us
Answer: Once payment is made to you & other party the right has been
transferred to the company.
●● When can you waive your right?
Answer: 1. Prior to a loss in writing
2. After a loss in writing to these people:
Someone insured by this insurance
A business firm owned or controlled by you or that owns or controls you
Your tenant
●● BPPCF
Answer: Building and personal property coverage form
●● BPPCF preamble
Answer: A. Coverage (insuring agreement)
,B. Exclusions and limitations
C. Limits of insurance
D. Deductible
E.loss conditions
F.additional conditions
G. Optional coverages
H. Definitions
●● What is in the insurance agreement portions of the policy
Answer: 1. Property covered
2. Property not covered
3. Covered causes of loss
4. Additional coverages
5. Coverage extensions
●● What triggers coverage
Answer: 1. Direct physical loss or damage
2. Must be a covered property
3. Must be at the premises described in the dec
4. Covered cause of loss
●● 3 categories of covered property
, Answer: A. Building
B. Your business personal property
C. Personal property of others
●● What is considered building for coverage
Answer: 1. Completed additions
2. Fixtures including outdoor furniture
3. Machinery and equipment (permanently installed)
4. Personal property used to service the building or premises
A. Fire extinguisher and other equipment
B. Outdoor furniture like park benches
C. Floor coverings (large rugs)
D. Cooking appliances, refrigerators dishwashers washers dryers
5. If not covered by other insurance (like additions to the building) (I
don't understand how this is possible considering builders risk)
●● Additional property not covered endorsement
Answer: Saying tenant improvements are not covered on policy
●● What is BPP
Answer: 1. Any contents in or working 100 feet of the structure or
premises
2. Fixtures that can be removed
TEST QUESTIONS WITH COMPLETE
ANSWER KEY
●● Common policy dec info
Answer: 1. Eff date
2. Named insured
3. Description of premises
4. Coverages provided (building, bpp, business income; limit of
insurance; covered causes of loss-by item; coinsurance, rates)
●● What is the coinsurance equation?
Answer: (Amount carried/ amount required) x loss = recovery minus
deductible equals settlement
●● Optional coverages
Answer: Replacement cost & agreed value
●● CPP conditions
Answer: 1. Concealment misrepresentation or fraud
2. Control of property
3. Insurance under two or more coverages
,4. Legal actions against us
5. Liberalization
6. No benefit to bailee (waiver of subrogation)
7. Other insurance
8. Policy period coverage territory
●● Transfer of Rights of Recovery Against Others to Us
Answer: Once payment is made to you & other party the right has been
transferred to the company.
●● When can you waive your right?
Answer: 1. Prior to a loss in writing
2. After a loss in writing to these people:
Someone insured by this insurance
A business firm owned or controlled by you or that owns or controls you
Your tenant
●● BPPCF
Answer: Building and personal property coverage form
●● BPPCF preamble
Answer: A. Coverage (insuring agreement)
,B. Exclusions and limitations
C. Limits of insurance
D. Deductible
E.loss conditions
F.additional conditions
G. Optional coverages
H. Definitions
●● What is in the insurance agreement portions of the policy
Answer: 1. Property covered
2. Property not covered
3. Covered causes of loss
4. Additional coverages
5. Coverage extensions
●● What triggers coverage
Answer: 1. Direct physical loss or damage
2. Must be a covered property
3. Must be at the premises described in the dec
4. Covered cause of loss
●● 3 categories of covered property
, Answer: A. Building
B. Your business personal property
C. Personal property of others
●● What is considered building for coverage
Answer: 1. Completed additions
2. Fixtures including outdoor furniture
3. Machinery and equipment (permanently installed)
4. Personal property used to service the building or premises
A. Fire extinguisher and other equipment
B. Outdoor furniture like park benches
C. Floor coverings (large rugs)
D. Cooking appliances, refrigerators dishwashers washers dryers
5. If not covered by other insurance (like additions to the building) (I
don't understand how this is possible considering builders risk)
●● Additional property not covered endorsement
Answer: Saying tenant improvements are not covered on policy
●● What is BPP
Answer: 1. Any contents in or working 100 feet of the structure or
premises
2. Fixtures that can be removed
