CIC Commercial Property 2022 EXAM

CIC Commercial Property 2022 EXAM Learning Objective 1A - Rights and Duties of the first Named Insured - answer1. Authorization to Cancel 2. Receive Cancellation 3. Make Changes with Insurer Consent 4. Responsible for Payment of Premium 5. Payee (Receiver) for Return Premium Learning Objective 1B - How does Coinsurance apply? - answerAmount Carried/Amount Required x Loss = Recovery-Deductible (Settlement) or "Did Have"/"Should Have" x Loss = Recovery - Deductible Components of "Common Policy Dec" IL DS 00 09 08 - answer1. Named Insured 2. Mailing Address 3. Policy Period 4. Biz Description 5. Premium for Coverage Parts 6. Forms Applicable Components of "Common Policy Conditions" IL 00 07 11 98 - answer1. Cancellation 2. Changes 3. Examination of your Books 4. Inspections & Surveys 5. Premiums 6. Transfer of Your Rights and Duties Components of "Commercial Property Dec" CP DS 00 10 00 - answer1. Effective Date 2. Named Insured 3. Description of Premises 4. Coverages Provided Components of "Commercial Property Conditions" CP 00 90 07 08 - answerA. Concealment, Misrepresentation, or Fraud B. Control of Property C. Insurance Under 2 or More Coverages D. Legal Action Against Us (within 2 years, only if all terms met) E. Liberalization (if coverage is broadened on newly issued policies, those policies already in force will have the benefit of the broadened coverage) F. No Benefit to Bailee (protects named Insured, not Bailee) G. Other Insurance (pro rata if other insurance) H. Policy Period, Coverage Territory (US, its territories, PR, and Canada) Learning Objective 1C: Who has the rights of recovery in the event of a loss (Review of "Transfer of Rights of Recovery Against Others to Us")? - answer1. Can waive rights or recovery against anyone....prior to a loss and in writing. 2. Can waive after a loss only if in writing and the responsible party is: a. Another Insured b. A business owned or controlled by Named Insured or a business that owns or controls the named insured c. A tenant of the named insured. (Wegmans example) ACV vs Replacement Cost - answerACV - Default valuation method of Property policies. Cost to replace covered property at time of the loss, minus depreciation. RC - Valuation commonly desired, but usually must be requested. Replace covered property at a premises with like kind and quality in today's dollars. Triggered with (X) on Dec Page. Agreed Value - answerOptional coverage on CP Dec Page. Expiration date only. Suspends coinsurance clause. Can apply to covered property and/or Business Income. BPP Limited International Coverage endorsement (CP 04 32) - answerCoverage for BPP in or enroute to a Foreign Coverage Territory listed in Schedule Property in the Process of Manufacture by Others Limited International Coverage (CP 04 33) - answerCoverage for raw materials and in-process goods in the process of manufacture in a Foreign Coverage Territory. Manuf facility not owned or operated by Insured. "Building and Personal Property Coverage Form (BPPCF)" CP00 10 10 12 componets - answerA. Coverage 1. Property Covered 2. Property Not Covered 3. Covered Causes of loss 4. Additional Coverages 5. Coverage Extensions B. Exclusions and Limitations C. Limits of Insurance D. Deductible E. Loss Conditions