EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.
CIC Commercial Property Exam Prep
Study Guide
Endorsements used to modify coverage extensions (6) - Answer✔✔-1. newly acquired or constructed
property - increased limit
2. higher limits
3. specified bpp temporarily away from premises
4. additional covered property
5. radio or television antennas
6. trees, shrubs, plants
Explain replacement cost - Answer✔✔-- without deduction for depreciation
- claims are paid on acv until repairs or replacements is complete and then difference is paid
- does not apply to pp of others, contents of residence or fine arts
Optional Coverage - RC PP OF OTHERS - Answer✔✔-- applies rc to property of others but limited to the
lessor of amount required by contract or RC
Loss Payment options (4) - Answer✔✔-1. Pay the value
2. Pay the cost to repair or replace
3. take the property at an agreed or appraised value
4. repair, rebuild or replace with like kind and quality
Page 1/6
, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.
Vacancy provision - describe and apply - Answer✔✔-1. Tenant - does not contain enough BPP to conduct
customary operations
2. owner - must be at least 31% leased and used by lessee to conduct customary operations
3. Under construction or renovation are not vacant
4. vacant for 60 consecutive days - theft, vandalism, sprinkler leakage, glass breakage, and attempted
theft are not covered perils
5. all other causes of loss payment is reduced by 15%
Endorsement that modify valuation provision (6) - Answer✔✔-1. Manufacturers selling price (finished
stock)
2. market value - stock
3. manufactures consequential loss assumption
4. Functional personal property valuation
5. functional building valuation
6. increased cost of loss and related expenses for green updates
Describe increased cost of construction - green endorsement - Answer✔✔-includes additional cost to
repair or replace with green materials
- coinsurance does not apply
- a limit must be selected for green upgrades
- a percentage must be selected (10%, 20%) and the most the policy will pay is the amount paid for the
loss plus deductible times the % selected
Page 2/6
CIC Commercial Property Exam Prep
Study Guide
Endorsements used to modify coverage extensions (6) - Answer✔✔-1. newly acquired or constructed
property - increased limit
2. higher limits
3. specified bpp temporarily away from premises
4. additional covered property
5. radio or television antennas
6. trees, shrubs, plants
Explain replacement cost - Answer✔✔-- without deduction for depreciation
- claims are paid on acv until repairs or replacements is complete and then difference is paid
- does not apply to pp of others, contents of residence or fine arts
Optional Coverage - RC PP OF OTHERS - Answer✔✔-- applies rc to property of others but limited to the
lessor of amount required by contract or RC
Loss Payment options (4) - Answer✔✔-1. Pay the value
2. Pay the cost to repair or replace
3. take the property at an agreed or appraised value
4. repair, rebuild or replace with like kind and quality
Page 1/6
, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024.
Vacancy provision - describe and apply - Answer✔✔-1. Tenant - does not contain enough BPP to conduct
customary operations
2. owner - must be at least 31% leased and used by lessee to conduct customary operations
3. Under construction or renovation are not vacant
4. vacant for 60 consecutive days - theft, vandalism, sprinkler leakage, glass breakage, and attempted
theft are not covered perils
5. all other causes of loss payment is reduced by 15%
Endorsement that modify valuation provision (6) - Answer✔✔-1. Manufacturers selling price (finished
stock)
2. market value - stock
3. manufactures consequential loss assumption
4. Functional personal property valuation
5. functional building valuation
6. increased cost of loss and related expenses for green updates
Describe increased cost of construction - green endorsement - Answer✔✔-includes additional cost to
repair or replace with green materials
- coinsurance does not apply
- a limit must be selected for green upgrades
- a percentage must be selected (10%, 20%) and the most the policy will pay is the amount paid for the
loss plus deductible times the % selected
Page 2/6
