CISR COMMERCIAL PROPERTY
INSURANCE EXAM 100% ACCURATE.
Real property is - ANSWERcomprised of buildings, structures and fixtures that are
tangible. Real property can be seen.
Give examples of Real Property - ANSWERLand is real property, but it is generally
not the subject of insurance.
Buildings are real property. They have walls and a roof. You can probably envision
many types of buildings, ranging from a small one-story office to a skyscraper.
Structures. A structure is any construction, including buildings. However, examples
of structures that are not buildings include a 3-sided lumber yard storage shed or a
gazebo. Another example can be seen in the picture to the left. A stadium is an
example of a structure.
Outdoor Fixtures. These are man-made objects, other than buildings or structures,
that are attached to land in some manner
Personal Property - ANSWERThe insured's personal property is also known as Your
Business Personal Property. Some of the commercial property coverage forms
define what is covered as business personal property. In general, this includes most
of the equipment, supplies, stock, machinery, etc., and material used to operate the
named insured's business.
Office equipment is an example of Your Business Personal Property
Indirect Loss - ANSWERA loss of income resulting from a direct loss to property is
an indirect loss.
Example:
A tornado destroys the business (a direct loss). Now the business cannot operate
and loses income (indirect loss) until the business can rebuild or move to another
location.
Actual Cash Value (ACV): - ANSWERA method of establishing the value of property
wherein depreciation and obsolescence are deducted from the value of the property.
Formula: replacement cost minus depreciation = actual cash value (ACV) (CISR,
CSRM Glossary)
Replacement Cost: - ANSWERThe cost to repair or replace damaged property with
like kind and quality without taking into account depreciation.
Insurable Interest - ANSWEROwner: Business owners stand to lose their investment
in their building and other property as well as their source of income.
Mortgage or Lien Holder: The mortgage or lien holder has an insurable interest when
there is an unpaid balance on the property loan.
Lessees or Tenants: When tenants sign leases, they are granted the right to occupy
the designated premises for a stipulated period of time. This right-to-use creates an
insurable interest for the tenant.
INSURANCE EXAM 100% ACCURATE.
Real property is - ANSWERcomprised of buildings, structures and fixtures that are
tangible. Real property can be seen.
Give examples of Real Property - ANSWERLand is real property, but it is generally
not the subject of insurance.
Buildings are real property. They have walls and a roof. You can probably envision
many types of buildings, ranging from a small one-story office to a skyscraper.
Structures. A structure is any construction, including buildings. However, examples
of structures that are not buildings include a 3-sided lumber yard storage shed or a
gazebo. Another example can be seen in the picture to the left. A stadium is an
example of a structure.
Outdoor Fixtures. These are man-made objects, other than buildings or structures,
that are attached to land in some manner
Personal Property - ANSWERThe insured's personal property is also known as Your
Business Personal Property. Some of the commercial property coverage forms
define what is covered as business personal property. In general, this includes most
of the equipment, supplies, stock, machinery, etc., and material used to operate the
named insured's business.
Office equipment is an example of Your Business Personal Property
Indirect Loss - ANSWERA loss of income resulting from a direct loss to property is
an indirect loss.
Example:
A tornado destroys the business (a direct loss). Now the business cannot operate
and loses income (indirect loss) until the business can rebuild or move to another
location.
Actual Cash Value (ACV): - ANSWERA method of establishing the value of property
wherein depreciation and obsolescence are deducted from the value of the property.
Formula: replacement cost minus depreciation = actual cash value (ACV) (CISR,
CSRM Glossary)
Replacement Cost: - ANSWERThe cost to repair or replace damaged property with
like kind and quality without taking into account depreciation.
Insurable Interest - ANSWEROwner: Business owners stand to lose their investment
in their building and other property as well as their source of income.
Mortgage or Lien Holder: The mortgage or lien holder has an insurable interest when
there is an unpaid balance on the property loan.
Lessees or Tenants: When tenants sign leases, they are granted the right to occupy
the designated premises for a stipulated period of time. This right-to-use creates an
insurable interest for the tenant.
