©THESTAR 2025 ALL RIGHTS RESERVED 11:24 PM A+
WebCe - Commercial Properties. Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
A tornado severely damages one of Major Manufacturing's plants. As a result of the damage,
Major Manufacturing is forced to curtail its operations during the 6 months needed to
complete repairs. The resulting loss of income suffered by Major Manufacturing is referred to
as - Answer✔a time element loss.
Which of the following describes a feature of standard commercial property policies? -
Answer✔Several different forms must be combined to make up a policy.
The president of Handy Corner Grocery has just learned that its accounting clerk has been
embezzling money from the company for the past 6 months. Handy has a standard commercial
property policy, a standard commercial general liability policy, and a workers compensation and
employers liability policy. Which of these policies covers this loss? - Answer✔None of these
policies cover the loss
An insurance company that specializes in coverage for religious institutions publishes its own
policy forms that provide broader coverage than the ISO forms. This insurer's forms would not
be referred to as - Answer✔standard forms.
Duffy's Tavern is currently insured under a commercial package policy that includes only
commercial property coverage and commercial general liability coverage. Duffy would like to
add coverage for equipment breakdown. This can be done by - Answer✔adding either a
separate equipment breakdown policy or an equipment breakdown coverage endorsement to
Duffy's commercial property policy.
A small fire in the Dalton Hotel basement damaged the computerized system that controls all
elevators in the hotel. It will be necessary-and costly-to completely reprogram the system to
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replace the lost data. Dalton has a commercial property policy that - Answer✔covers this loss
because electronic data that is integrated with the elevator system is not excluded.
A building owned by Mega Properties has been continuously vacant for 6 months. In the
seventh month, a lightning strike starts a fire which destroys the building. Assuming that
Mega's commercial property policy is written on standard forms, how much would the insurer
reduce the loss payment because of the vacancy of the building? - Answer✔The insurer would
discount the loss payment by 15 percent because the building was vacant.
Ad Men Advertising Agency is located on the 25th floor of a high-rise building, and the
declarations of its commercial property policy list its location as "Suite 2500, 1271 Madison
Avenue, New York, NY." Ad Men's valuable laser printer is stolen from the building's outdoor
ground-floor loading dock when an employee leaves it unattended while fetching his car. Ad
Men's policy includes the special causes of loss form. Ad Men's insurance - Answer✔covers this
loss because the property was within 100 feet of the building.
Executive Dry Cleaning wants to have coverage for personal property of its customers in its
commercial property policy. What must be done to activate this coverage under the standard
building and personal property coverage form? - Answer✔A limit of insurance for personal
property of others must be shown on the policy declarations page.
Handy's Corner Grocery has a standard commercial property policy covering its retail store. An
explosion destroys $15,000 of grocery inventory and $5,000 in cash. Is the loss of the cash
covered under Handy's commercial property policy? - Answer✔No, because money and
securities are excluded from coverage.
What coverage is provided under the building and personal property coverage form for the cost
of replacing or restoring lost information on valuable papers and records? - Answer✔Valuable
papers and records are covered for up to $2,500 (or a higher limit, if shown in the declarations)
for loss from certain perils.
The roof of the Green Building is partially covered with live grass. Green's building and personal
property coverage form covers these plants, because this living roof is what the form refers to
as a(n) - Answer✔vegetated roof.
After high winds severely damage the roof of its building, Keepsake Fine Art and Collectibles
moves its inventory to a temporary location to protect it from damage from the elements.
Unfortunately, the temporary location suffers a flood only 3 days after the move, and
Keepsake's inventory is damaged. Assuming that Keepsake has an unendorsed standard
2|Page
WebCe - Commercial Properties. Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
A tornado severely damages one of Major Manufacturing's plants. As a result of the damage,
Major Manufacturing is forced to curtail its operations during the 6 months needed to
complete repairs. The resulting loss of income suffered by Major Manufacturing is referred to
as - Answer✔a time element loss.
Which of the following describes a feature of standard commercial property policies? -
Answer✔Several different forms must be combined to make up a policy.
The president of Handy Corner Grocery has just learned that its accounting clerk has been
embezzling money from the company for the past 6 months. Handy has a standard commercial
property policy, a standard commercial general liability policy, and a workers compensation and
employers liability policy. Which of these policies covers this loss? - Answer✔None of these
policies cover the loss
An insurance company that specializes in coverage for religious institutions publishes its own
policy forms that provide broader coverage than the ISO forms. This insurer's forms would not
be referred to as - Answer✔standard forms.
Duffy's Tavern is currently insured under a commercial package policy that includes only
commercial property coverage and commercial general liability coverage. Duffy would like to
add coverage for equipment breakdown. This can be done by - Answer✔adding either a
separate equipment breakdown policy or an equipment breakdown coverage endorsement to
Duffy's commercial property policy.
A small fire in the Dalton Hotel basement damaged the computerized system that controls all
elevators in the hotel. It will be necessary-and costly-to completely reprogram the system to
1|Page
, ©THESTAR 2025 ALL RIGHTS RESERVED 11:24 PM A+
replace the lost data. Dalton has a commercial property policy that - Answer✔covers this loss
because electronic data that is integrated with the elevator system is not excluded.
A building owned by Mega Properties has been continuously vacant for 6 months. In the
seventh month, a lightning strike starts a fire which destroys the building. Assuming that
Mega's commercial property policy is written on standard forms, how much would the insurer
reduce the loss payment because of the vacancy of the building? - Answer✔The insurer would
discount the loss payment by 15 percent because the building was vacant.
Ad Men Advertising Agency is located on the 25th floor of a high-rise building, and the
declarations of its commercial property policy list its location as "Suite 2500, 1271 Madison
Avenue, New York, NY." Ad Men's valuable laser printer is stolen from the building's outdoor
ground-floor loading dock when an employee leaves it unattended while fetching his car. Ad
Men's policy includes the special causes of loss form. Ad Men's insurance - Answer✔covers this
loss because the property was within 100 feet of the building.
Executive Dry Cleaning wants to have coverage for personal property of its customers in its
commercial property policy. What must be done to activate this coverage under the standard
building and personal property coverage form? - Answer✔A limit of insurance for personal
property of others must be shown on the policy declarations page.
Handy's Corner Grocery has a standard commercial property policy covering its retail store. An
explosion destroys $15,000 of grocery inventory and $5,000 in cash. Is the loss of the cash
covered under Handy's commercial property policy? - Answer✔No, because money and
securities are excluded from coverage.
What coverage is provided under the building and personal property coverage form for the cost
of replacing or restoring lost information on valuable papers and records? - Answer✔Valuable
papers and records are covered for up to $2,500 (or a higher limit, if shown in the declarations)
for loss from certain perils.
The roof of the Green Building is partially covered with live grass. Green's building and personal
property coverage form covers these plants, because this living roof is what the form refers to
as a(n) - Answer✔vegetated roof.
After high winds severely damage the roof of its building, Keepsake Fine Art and Collectibles
moves its inventory to a temporary location to protect it from damage from the elements.
Unfortunately, the temporary location suffers a flood only 3 days after the move, and
Keepsake's inventory is damaged. Assuming that Keepsake has an unendorsed standard
2|Page
