CPCU 551 CHAPTER 5 EXAM
QUESTIONS WITH DETAILED ANSWERS
, A condominium association agreement - ANSWERC. Clarifies the rights and
responsibilities of unit owners and the association.
Which one of the following describes an aspect of a planned unit development? -
ANSWERB. The occupant has exclusive ownership of his unit.
Condominium unit owners may wish to limit the insurance coverage on their units -
ANSWERD. To avoid duplicating coverage maintained by the association.
The Business Park Condominium Association is insured under the Condominium
Association Coverage Form and follows the single entity concept. Which one of the
following losses would be covered under this form? - ANSWERD. The club house of the
condominium association is vandalized, resulting in extensive damage to its furniture.
One way in which the Condominium Association Coverage Form conditions are different
from the Building and Personal Property Coverage Form conditions is which of these? -
ANSWERB. The Loss Payment condition states that if the association has designated
an insurance trustee, then the insurer may pay claims to the trustee.
The Condominium Association Coverage Form is designed for insuring - ANSWERC.
Appliances, such as dishwashers, under the building coverage.
Which one of the following statements is true regarding the Condominium Additional
Provisions Endorsement (CP 01 07)? - ANSWERD. The endorsement requires the
insurer to give at least thirty days' written notice of policy nonrenewal to the first named
insured
Cromely and Company is purchasing a commercial condominium unit that it will occupy.
Cromely wants to insure its business personal property along with any improvements
that it makes to the unit. Which one of the following forms would meet its needs? -
ANSWERC. Condominium Commercial Unit-Owners Coverage Form
A situation that suggests a need for optional miscellaneous real property coverage is -
ANSWERD. A patio with a grill, table, and benches that was built by a unit owner and is
only used to entertain the unit owner's business clients.
One purpose of the miscellaneous real property coverage which can be added to the
Condominium Commercial Unit-Owners Coverage Form is to insure - ANSWERD.
Condominium property that the named insured has a duty to insure, such as a storage
building.
QUESTIONS WITH DETAILED ANSWERS
, A condominium association agreement - ANSWERC. Clarifies the rights and
responsibilities of unit owners and the association.
Which one of the following describes an aspect of a planned unit development? -
ANSWERB. The occupant has exclusive ownership of his unit.
Condominium unit owners may wish to limit the insurance coverage on their units -
ANSWERD. To avoid duplicating coverage maintained by the association.
The Business Park Condominium Association is insured under the Condominium
Association Coverage Form and follows the single entity concept. Which one of the
following losses would be covered under this form? - ANSWERD. The club house of the
condominium association is vandalized, resulting in extensive damage to its furniture.
One way in which the Condominium Association Coverage Form conditions are different
from the Building and Personal Property Coverage Form conditions is which of these? -
ANSWERB. The Loss Payment condition states that if the association has designated
an insurance trustee, then the insurer may pay claims to the trustee.
The Condominium Association Coverage Form is designed for insuring - ANSWERC.
Appliances, such as dishwashers, under the building coverage.
Which one of the following statements is true regarding the Condominium Additional
Provisions Endorsement (CP 01 07)? - ANSWERD. The endorsement requires the
insurer to give at least thirty days' written notice of policy nonrenewal to the first named
insured
Cromely and Company is purchasing a commercial condominium unit that it will occupy.
Cromely wants to insure its business personal property along with any improvements
that it makes to the unit. Which one of the following forms would meet its needs? -
ANSWERC. Condominium Commercial Unit-Owners Coverage Form
A situation that suggests a need for optional miscellaneous real property coverage is -
ANSWERD. A patio with a grill, table, and benches that was built by a unit owner and is
only used to entertain the unit owner's business clients.
One purpose of the miscellaneous real property coverage which can be added to the
Condominium Commercial Unit-Owners Coverage Form is to insure - ANSWERD.
Condominium property that the named insured has a duty to insure, such as a storage
building.
