CIC PROPERTY EXAM QUESTIONS
WITH COMPLETE SOLUTIONS
Additional Property Not Covered (CP 14 20) - Answer-Modifies Building and Personal
Property Coverage Form CP 00 10 to eliminate coverage for selected property. Used
when insured doesn't want or need the property insured or when carrier requires the
property not be covered.
Theft of Building Materials and Supplies (Other than builders risk) CP 10 44 - Answer-
Attached to the special form to provide theft coverage for building materials and
supplies on or within 100 feet of the premises and which are intended to become a
permanent part of the building by addition, alteration, or repair.
Broken or Cracked Glass Exclusion (CP 10 52) - Answer-Allows for the exclusion of any
broken or cracked glass described in endorsement.
Outdoor Trees, Shrubs, and Plants (CP 14 30) - Answer-Used to insure outdoor trees,
shrubs, and plants for increased limits and/or additional causes of loss.
Outdoor Signs (CP 14 40) - Answer-Used to increase the $2,500 limit provided in the
Building and Personal Property Coverage Form
Radio or TV Antennas (CP 14 50) - Answer-Used to insure radio or TV antennas for
additional limits and/or additional causes of loss
Specified BPP temporarily away from the premises (CP 04 04) - Answer-Covers BPP
temporarily in the care, custody, and control of an employee away from the described
premises.
Pollutant Clean Up and Removal Additional Aggregate of Insurance (CP 04 15) -
Answer-Increases the $10,000 limit with a minimum $1,000 deductible
Debris Removal Additional Insurance (CP 04 15) - Answer-Increases the additional
$25,000 limit in the debris removal additional coverages section
Increased Cost of Loss and Related Expenses for Green Updates (CP 04 02) "Green
Endorsement" - Answer-Used to change the valuation on building and/or BPP to include
coverage for the additional costs to repair or replace damaged covered property with
materials and products that are recognized by a Green standards-setter such as
EnergyStar, LEED, or Green Globes. Must specify a limit.
Functional Building Valuation (CP 04 38) - Answer-Used to adjust the loss payment to
be based on the cost to replace the damaged building with a less costly building that is
functionally equivalent to the damaged building. A partial loss payment will be made on
, the cost of restoring the building in the same architectural style, using less costly
materials.
Manufacturer's Selling Price (CP 99 30) - Answer-Changes the valuation of finished
stock of a manufacturing firm to selling price.
Leased Property (CP 14 60) - Answer-Used when the insured doesn't have a
contractual obligation to insure leased equipment but the lease requires the insured to
pay a specified amount if the property is totally destroyed.
Inflation Guard Optional Coverage - Answer-Optional coverage in the building and
personal property coverage; choose a 4, 6, 8, 10 or 12% factor and the limit is
increased that percentage over the course of the year.
Value Reporting Form (CP 13 10) - Answer-Used when insured has fluctuating personal
property values or changing locations; reports must be accurate and on time; used for
BPP, PPO, and stock. Penalty for late reporting: first report is late, policy will pay 75% of
the amount that otherwise would have been paid; any other late reports and the loss is
adjusted based on most recent report.
Peak Season Limit of Insurance (CP 12 30) - Answer-Designed for a firm that has
predictable seasonal fluctuations in personal property values. Provides increased
amounts of insurance during peak season.
Loss Payable Provisions (CP 12 18) - Answer-Allows the building owner to be added as
a loss payee
Additional Insured - Building Owner (CP 12 19) - Answer-Allows the building owner to
be added as an additional insured.
Vacancy Permit (CP 04 50) - Answer-Eliminates the vacancy loss condition
Vacancy Changes (CP 04 60) - Answer-Allows the 31% rented criteria to be reduced to
as low as 10%
Increase in Rebuilding Expenses Following Disaster (Additional Expense Coverage on
Annual Aggregate Basis) CP 04 09 - Answer-Provides an additional amount of
insurance for rebuilding when the costs of labor and/or materials increases as a result of
a disaster and the total cost to repair or replace exceeds the limit of insurance.
Causes of Loss - Basic Form - Answer-Fire; Lightning; Explosion; Windstorm or Hail;
Smoke; Aircraft & Vehicles; Riot or Civil Commotion; Vandalism; Sprinkler Leakage;
Sinkhole Collapse; Volcanic Action
Causes of Loss - Broad Form - Answer-All those in basic form plus Falling Objects;
Weight of Snow, Ice or Sleet; Water Damage
WITH COMPLETE SOLUTIONS
Additional Property Not Covered (CP 14 20) - Answer-Modifies Building and Personal
Property Coverage Form CP 00 10 to eliminate coverage for selected property. Used
when insured doesn't want or need the property insured or when carrier requires the
property not be covered.
Theft of Building Materials and Supplies (Other than builders risk) CP 10 44 - Answer-
Attached to the special form to provide theft coverage for building materials and
supplies on or within 100 feet of the premises and which are intended to become a
permanent part of the building by addition, alteration, or repair.
Broken or Cracked Glass Exclusion (CP 10 52) - Answer-Allows for the exclusion of any
broken or cracked glass described in endorsement.
Outdoor Trees, Shrubs, and Plants (CP 14 30) - Answer-Used to insure outdoor trees,
shrubs, and plants for increased limits and/or additional causes of loss.
Outdoor Signs (CP 14 40) - Answer-Used to increase the $2,500 limit provided in the
Building and Personal Property Coverage Form
Radio or TV Antennas (CP 14 50) - Answer-Used to insure radio or TV antennas for
additional limits and/or additional causes of loss
Specified BPP temporarily away from the premises (CP 04 04) - Answer-Covers BPP
temporarily in the care, custody, and control of an employee away from the described
premises.
Pollutant Clean Up and Removal Additional Aggregate of Insurance (CP 04 15) -
Answer-Increases the $10,000 limit with a minimum $1,000 deductible
Debris Removal Additional Insurance (CP 04 15) - Answer-Increases the additional
$25,000 limit in the debris removal additional coverages section
Increased Cost of Loss and Related Expenses for Green Updates (CP 04 02) "Green
Endorsement" - Answer-Used to change the valuation on building and/or BPP to include
coverage for the additional costs to repair or replace damaged covered property with
materials and products that are recognized by a Green standards-setter such as
EnergyStar, LEED, or Green Globes. Must specify a limit.
Functional Building Valuation (CP 04 38) - Answer-Used to adjust the loss payment to
be based on the cost to replace the damaged building with a less costly building that is
functionally equivalent to the damaged building. A partial loss payment will be made on
, the cost of restoring the building in the same architectural style, using less costly
materials.
Manufacturer's Selling Price (CP 99 30) - Answer-Changes the valuation of finished
stock of a manufacturing firm to selling price.
Leased Property (CP 14 60) - Answer-Used when the insured doesn't have a
contractual obligation to insure leased equipment but the lease requires the insured to
pay a specified amount if the property is totally destroyed.
Inflation Guard Optional Coverage - Answer-Optional coverage in the building and
personal property coverage; choose a 4, 6, 8, 10 or 12% factor and the limit is
increased that percentage over the course of the year.
Value Reporting Form (CP 13 10) - Answer-Used when insured has fluctuating personal
property values or changing locations; reports must be accurate and on time; used for
BPP, PPO, and stock. Penalty for late reporting: first report is late, policy will pay 75% of
the amount that otherwise would have been paid; any other late reports and the loss is
adjusted based on most recent report.
Peak Season Limit of Insurance (CP 12 30) - Answer-Designed for a firm that has
predictable seasonal fluctuations in personal property values. Provides increased
amounts of insurance during peak season.
Loss Payable Provisions (CP 12 18) - Answer-Allows the building owner to be added as
a loss payee
Additional Insured - Building Owner (CP 12 19) - Answer-Allows the building owner to
be added as an additional insured.
Vacancy Permit (CP 04 50) - Answer-Eliminates the vacancy loss condition
Vacancy Changes (CP 04 60) - Answer-Allows the 31% rented criteria to be reduced to
as low as 10%
Increase in Rebuilding Expenses Following Disaster (Additional Expense Coverage on
Annual Aggregate Basis) CP 04 09 - Answer-Provides an additional amount of
insurance for rebuilding when the costs of labor and/or materials increases as a result of
a disaster and the total cost to repair or replace exceeds the limit of insurance.
Causes of Loss - Basic Form - Answer-Fire; Lightning; Explosion; Windstorm or Hail;
Smoke; Aircraft & Vehicles; Riot or Civil Commotion; Vandalism; Sprinkler Leakage;
Sinkhole Collapse; Volcanic Action
Causes of Loss - Broad Form - Answer-All those in basic form plus Falling Objects;
Weight of Snow, Ice or Sleet; Water Damage
