CIC COMMERCIAL MULTI-LINE EXAM
PREP QUESTIONS WITH VERIFIED
ANSWERS
Identify and apply Perils Covered and Perils Excluded by this AAIS Contractors
Equipment Floater - Answer-Covered Perils- Open peril policy
Excluded Perils-
civil authority
nuclear hazard
war
contamination/ deteroration
-dishonety/ illegal acts
-Mechanical breakdown
-Missing property
-pollutants
-puncture, blowout, road damage
-voluntary parting
-weight capacity
List the five exceptions to a common carrier's liability for the property of others in their
possession - Answer-1.) Acts of nature (flood, windstorm, earthquake)
2.)Acts of public enemy
3.)Exercise of Public Authority
4.)fault of negligence on part of shipper (poor packaging)
5.)inherent vice (apples & dates)
Identify the advantages for the owner of the goods to purchase a transportation policy -
Answer--Immediate payment for loss
-insure will subrogate
-broad coverage
-purchase limits necessary for only your goods
-inexpensive when compared to what the carrier may charge
Identify and describe underwriting considerations used when writing various types of
transportation policies - Answer--What's being transported
-method of travel
-distance of travel
-territory traveled
-freq. of theft
-subrogation possibilities
-financial condition
-maintenance of vehicles
,-loss history
Identify the reasons for purchasing commercial crime insurance based on the
exclusions and limitations of the Building and Personal Property Coverage Form with
Causes Of Loss- Special Form - Answer-Commercial Property policy does not coverage
bills, currency, money, notes, accounts etc...
limitations of the C.P.=
-doesn't pay for mysterious disapperance
-not covered for unauthorized property transfer
-small limits ($2.5k)
Excludes:
Dishonest Acts
Voluntary Parting
Identify the 7 Insuring Agreements included in the Commercial Crime Coverage Form
(Loss Sustained Form) as well as the Commercial Crime Coverage Form (Discovery
Form) - Answer-1.) Employee Theft
2.)Forgery or Alterations
3.)Inside Premises- Theft of Money & Securities
4.)Inside Premises-Robbery or Safe Burglary of Other Property
5.)Outside The Premises
6.)Computer & Funds Transfer Fraud
7.)Money Orders & Counterfeit Money
Explain how the trigger of coverage under the Commercial Crime Coverage Form (Loss
Sustained Form) will apply to claims situations - Answer-Loss Sustained is triggered
when a loss occurred during the policy period and is discovered during policy period or
the extended period of discovery (1 yr)
Explain how the Commercial Crime Coverage form (Loss Sustained Form) applies to
claims situation that occur partly or entirely during prior policies - Answer-Same Carrier
-Loss must be covered under current policy
-current policy must be effective on the cancellation date of the prior insurance (NO
Gap)
-Settles losses from current policy backwards
-highest limit of Insurance applies w/ Current deductible
Different Carriers
-Pays lowest limit with current deductible
Explain how the trigger of coverage under the Commercial Crime Coverage Form
(Discovery Form) will apply to claims situations - Answer-Discovery coverage is
triggered for a loss that occurred at anytime during the current policy period and is
discovered during the extended Discovery period (60 days)
, Retrodate: if an occurrence happened before the established date= NO COVERAGE
Describe and apply the coverage provided by the Insuring Agreement A.1. Employee
Theft - Answer-Covered Property= money, securities, other property from direct theft
from an employee.
Property could be held by N.I. or something they are legally liable for
Coverage applies per loss; not per employee
Employee does not have to be ID'd unless specifically stated in Endorsement
Describe "money" "securities", other property., "theft" and "employee" as found in the
Commercial Crime Coverage Form - Answer-money- coins, cash, has a face value and
can be spent now (no confederate money)
securities- Tokens, Tickets, Notes, takes more work
Other property- tangible property, No Electronic Data
Theft- unlawful taking of property to deprive the N.I.
Employee:
-Current or past (30 day window)
-Temp/leased
-Former Employee who is now a consultant
-intern
-Merger or Conslidated employees
-Managers, directors, trustees
NOT EMPLOYEES: AGENTS, BROKERS FACTORS, CONSIGNEES, INDEPENDENT
CONTRACTORS
Given an Endorsement used to modify the definition of employee, describe it's use. -
Answer-examples:
Volunteer Workers- meant for Gov't workers or nonprofit groups when working as fun
solicitors during franchise compagine
Describe and apply policy exclusions pertaining to insuring agreement A.1. Employee
Theft - Answer--inventory shortages discovered by inventory or profit loss computation
-Trading Losses (Stocks etc...)
-Warehouse Receipts
PREP QUESTIONS WITH VERIFIED
ANSWERS
Identify and apply Perils Covered and Perils Excluded by this AAIS Contractors
Equipment Floater - Answer-Covered Perils- Open peril policy
Excluded Perils-
civil authority
nuclear hazard
war
contamination/ deteroration
-dishonety/ illegal acts
-Mechanical breakdown
-Missing property
-pollutants
-puncture, blowout, road damage
-voluntary parting
-weight capacity
List the five exceptions to a common carrier's liability for the property of others in their
possession - Answer-1.) Acts of nature (flood, windstorm, earthquake)
2.)Acts of public enemy
3.)Exercise of Public Authority
4.)fault of negligence on part of shipper (poor packaging)
5.)inherent vice (apples & dates)
Identify the advantages for the owner of the goods to purchase a transportation policy -
Answer--Immediate payment for loss
-insure will subrogate
-broad coverage
-purchase limits necessary for only your goods
-inexpensive when compared to what the carrier may charge
Identify and describe underwriting considerations used when writing various types of
transportation policies - Answer--What's being transported
-method of travel
-distance of travel
-territory traveled
-freq. of theft
-subrogation possibilities
-financial condition
-maintenance of vehicles
,-loss history
Identify the reasons for purchasing commercial crime insurance based on the
exclusions and limitations of the Building and Personal Property Coverage Form with
Causes Of Loss- Special Form - Answer-Commercial Property policy does not coverage
bills, currency, money, notes, accounts etc...
limitations of the C.P.=
-doesn't pay for mysterious disapperance
-not covered for unauthorized property transfer
-small limits ($2.5k)
Excludes:
Dishonest Acts
Voluntary Parting
Identify the 7 Insuring Agreements included in the Commercial Crime Coverage Form
(Loss Sustained Form) as well as the Commercial Crime Coverage Form (Discovery
Form) - Answer-1.) Employee Theft
2.)Forgery or Alterations
3.)Inside Premises- Theft of Money & Securities
4.)Inside Premises-Robbery or Safe Burglary of Other Property
5.)Outside The Premises
6.)Computer & Funds Transfer Fraud
7.)Money Orders & Counterfeit Money
Explain how the trigger of coverage under the Commercial Crime Coverage Form (Loss
Sustained Form) will apply to claims situations - Answer-Loss Sustained is triggered
when a loss occurred during the policy period and is discovered during policy period or
the extended period of discovery (1 yr)
Explain how the Commercial Crime Coverage form (Loss Sustained Form) applies to
claims situation that occur partly or entirely during prior policies - Answer-Same Carrier
-Loss must be covered under current policy
-current policy must be effective on the cancellation date of the prior insurance (NO
Gap)
-Settles losses from current policy backwards
-highest limit of Insurance applies w/ Current deductible
Different Carriers
-Pays lowest limit with current deductible
Explain how the trigger of coverage under the Commercial Crime Coverage Form
(Discovery Form) will apply to claims situations - Answer-Discovery coverage is
triggered for a loss that occurred at anytime during the current policy period and is
discovered during the extended Discovery period (60 days)
, Retrodate: if an occurrence happened before the established date= NO COVERAGE
Describe and apply the coverage provided by the Insuring Agreement A.1. Employee
Theft - Answer-Covered Property= money, securities, other property from direct theft
from an employee.
Property could be held by N.I. or something they are legally liable for
Coverage applies per loss; not per employee
Employee does not have to be ID'd unless specifically stated in Endorsement
Describe "money" "securities", other property., "theft" and "employee" as found in the
Commercial Crime Coverage Form - Answer-money- coins, cash, has a face value and
can be spent now (no confederate money)
securities- Tokens, Tickets, Notes, takes more work
Other property- tangible property, No Electronic Data
Theft- unlawful taking of property to deprive the N.I.
Employee:
-Current or past (30 day window)
-Temp/leased
-Former Employee who is now a consultant
-intern
-Merger or Conslidated employees
-Managers, directors, trustees
NOT EMPLOYEES: AGENTS, BROKERS FACTORS, CONSIGNEES, INDEPENDENT
CONTRACTORS
Given an Endorsement used to modify the definition of employee, describe it's use. -
Answer-examples:
Volunteer Workers- meant for Gov't workers or nonprofit groups when working as fun
solicitors during franchise compagine
Describe and apply policy exclusions pertaining to insuring agreement A.1. Employee
Theft - Answer--inventory shortages discovered by inventory or profit loss computation
-Trading Losses (Stocks etc...)
-Warehouse Receipts
