EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
AINS 23 Exam Study Guide with
Complete Solutions
Financial consequences of property losses - Answer✔✔-Reduction in property value, lost
income, and extra expenses.
Package modification factors - Answer✔✔-Factors that are applied to the regular policy
premiums for certain coverage parts of a commercial package policy that includes both property
and liability coverages, resulting in premium discounts.
Commercial property declarations page - Answer✔✔-Contains description of property, kinds
and amounts of coverage, covered causes of loss, list of mortgagees, deductibles, list of
endorsements, coinsurance percentage.
Commercial property coverage forms - Answer✔✔-A package policy usually contains several
different coverage forms which contain an insuring agreement and list of exclusions and
provisions. Typically, one form insures the building and/or personal property and the another
insures business income and/or extra expenses.
Causes of loss forms - Answer✔✔-Basic, broad and special, which specify what perils are
covered. There may be more than one cause of loss form in a package.
Building Coverage - Answer✔✔-1) Completed additions to covered buildings
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,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
2) Fixtures (including outdoor fixtures)
3) Permanently installed machinery and equipment
4) Personal property owned by the insured used to maintain or service the building (fire
extinguishers, floor coverings, cooking equipment)
Business Personal Property - Answer✔✔-Coverage only applies within 100 feet of building, and
includes furniture, fixtures, machinery, stock, and betterments.
Personal Property of Others - Answer✔✔-Covers property of others within 100 feet of premises
and applied regardless of fault. Even if insured doesn't buy, there is a coverage extension to
provide $2,500 at each insured location.
Property Not Covered - Answer✔✔-1) Illegal goods
2) Building foundations, footings, underground pipes and areas not susceptible to perils
3) Items better insured elsewhere (money, autos, aircraft)
Additional Coverages - Answer✔✔-1) Debris Removal
2) Preservation of Property
3) Fire Dept. Service Charge
4) Pollutant Cleanup and Removal
5) Increased Cost of Construction
6) Electronic Data
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, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
Debris Removal - Answer✔✔-Must be from a covered cause of loss, but it can include property
not covered (ex. windstorm blows debris onto premises). Includes additional coverage to clean
up pollution caused by an insured peril.
Preservation of Property - Answer✔✔-Extends protection to property while it is being moved
and for up to 30 days at the new location. It is broader, and includes any direct physical damage,
so it does not have to be from a covered cause of loss. Subject to the limits of insurance.
Increased Cost of Construction - Answer✔✔-Increased cost to comply with ordinances or laws
regulating the repair, rebuilding, or replacement of covered buildings. Amount of insurance is
equal to 5% of the amount of insurance or $10,000, whichever is less. Paid in addition to the
policy limit. Does not cover loss to undamaged portion of building that or ordinance or law does
not permit to remain in use. Does not cover demolition of undamaged portion of building.
Coverage Extensions - Answer✔✔-Only apply if at least 80% coinsurance or a value reporting
period symbol is shown in the declarations. Paid in addition to the limits.
1) Newly acquired or constructed property
2) Personal effects and property of others
3) Valuable papers and records
4) Property off-premises
5) Outdoor property
6) Non-owned detached trailers
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AINS 23 Exam Study Guide with
Complete Solutions
Financial consequences of property losses - Answer✔✔-Reduction in property value, lost
income, and extra expenses.
Package modification factors - Answer✔✔-Factors that are applied to the regular policy
premiums for certain coverage parts of a commercial package policy that includes both property
and liability coverages, resulting in premium discounts.
Commercial property declarations page - Answer✔✔-Contains description of property, kinds
and amounts of coverage, covered causes of loss, list of mortgagees, deductibles, list of
endorsements, coinsurance percentage.
Commercial property coverage forms - Answer✔✔-A package policy usually contains several
different coverage forms which contain an insuring agreement and list of exclusions and
provisions. Typically, one form insures the building and/or personal property and the another
insures business income and/or extra expenses.
Causes of loss forms - Answer✔✔-Basic, broad and special, which specify what perils are
covered. There may be more than one cause of loss form in a package.
Building Coverage - Answer✔✔-1) Completed additions to covered buildings
Page 1/28
,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
2) Fixtures (including outdoor fixtures)
3) Permanently installed machinery and equipment
4) Personal property owned by the insured used to maintain or service the building (fire
extinguishers, floor coverings, cooking equipment)
Business Personal Property - Answer✔✔-Coverage only applies within 100 feet of building, and
includes furniture, fixtures, machinery, stock, and betterments.
Personal Property of Others - Answer✔✔-Covers property of others within 100 feet of premises
and applied regardless of fault. Even if insured doesn't buy, there is a coverage extension to
provide $2,500 at each insured location.
Property Not Covered - Answer✔✔-1) Illegal goods
2) Building foundations, footings, underground pipes and areas not susceptible to perils
3) Items better insured elsewhere (money, autos, aircraft)
Additional Coverages - Answer✔✔-1) Debris Removal
2) Preservation of Property
3) Fire Dept. Service Charge
4) Pollutant Cleanup and Removal
5) Increased Cost of Construction
6) Electronic Data
Page 2/28
, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
Debris Removal - Answer✔✔-Must be from a covered cause of loss, but it can include property
not covered (ex. windstorm blows debris onto premises). Includes additional coverage to clean
up pollution caused by an insured peril.
Preservation of Property - Answer✔✔-Extends protection to property while it is being moved
and for up to 30 days at the new location. It is broader, and includes any direct physical damage,
so it does not have to be from a covered cause of loss. Subject to the limits of insurance.
Increased Cost of Construction - Answer✔✔-Increased cost to comply with ordinances or laws
regulating the repair, rebuilding, or replacement of covered buildings. Amount of insurance is
equal to 5% of the amount of insurance or $10,000, whichever is less. Paid in addition to the
policy limit. Does not cover loss to undamaged portion of building that or ordinance or law does
not permit to remain in use. Does not cover demolition of undamaged portion of building.
Coverage Extensions - Answer✔✔-Only apply if at least 80% coinsurance or a value reporting
period symbol is shown in the declarations. Paid in addition to the limits.
1) Newly acquired or constructed property
2) Personal effects and property of others
3) Valuable papers and records
4) Property off-premises
5) Outdoor property
6) Non-owned detached trailers
Page 3/28
