CIC Commercial Property questions with verified
answers
Actual Cash Value Ans✓✓✓ Cost to replace the covered property at
the premises at the time of loss minus depreciation.
Additional Coverages Provided in the Building and Personal Property
Coverage Form Ans✓✓✓ 1. Debris Removal 2. Preservation of Property
3. Fire Department Service Charge 4. Pollutant Clean up and Removal 5.
Increased Cost of Constructions 6. Electronic Data
Advantages and Disadvantages of writing a policy on a blanket bases vs.
scheduled/specific basis Ans✓✓✓ Advantages-named insured can
apply insurance where needed when more than 1 property is covered
on a blanket basis, handles fluctuating values between locations,
reporting forms easier to handle, named insured may have 100%
insurance to value at each location but only has to carry 90% to value
for all combined locations. Disadvantages- 90% or 100% coinsurance
required, blanket may not be possible because of underwriting
restrictions or form restrictions, statement of values must be obtained
from named insured, rates for one year only, must have same causes of
loss for all covered property, must list all ownership interests with
multiple locations
Agreed Value Ans✓✓✓ Suspends coinsurance clause, expiration date
only not longer than 12 months, can apply to covered property and/or
business income
, Business Personal Property Ans✓✓✓ Furniture and fixtures, machinery
and equipment, stock, all other personal property owned by you and
used in your business, labor, materials or services, furnished or
arranged by you on personal property of others, your use interest as
tenant in improvements and betterments, leased personal property
which you have a contractural obligation.
Coinsurance Formula Ans✓✓✓ Amount carried divided by amount
required (building x's coinsurance clause)
Coverage Ans✓✓✓ We will pay for direct physical loss of or damage to
covered property at the premises described, there must be direct
physical loss or damage, the loss or damage must be to covered
property, the covered property must be at the premises described,
must be caused by or a result from a covered cause of loss.
Coverage Extensions of Building and Personal Property Ans✓✓✓ A.
Newly Acquired or Constructed Property-may extend that insurance
apply to your new buildings while being built on the described premises
and buildings you acquire at locations intended for similar use as the
building, use as a warehouse. B. Personal Effects and Property of
Others- personal effects owned by you, your officers your partners or
members, your managers or your employees, personal property of
others in your care, custody or control, no theft coverage. C. Valuable
Papers and Records- duplicates do not exist, not electronic data, name
perils coverage only, not more than $2500 D. Property Off-premises-
temporarily at a location but not at a location owned/leased/operated,
storage at a leased location, at any fair, trade show or exhibition, not in
answers
Actual Cash Value Ans✓✓✓ Cost to replace the covered property at
the premises at the time of loss minus depreciation.
Additional Coverages Provided in the Building and Personal Property
Coverage Form Ans✓✓✓ 1. Debris Removal 2. Preservation of Property
3. Fire Department Service Charge 4. Pollutant Clean up and Removal 5.
Increased Cost of Constructions 6. Electronic Data
Advantages and Disadvantages of writing a policy on a blanket bases vs.
scheduled/specific basis Ans✓✓✓ Advantages-named insured can
apply insurance where needed when more than 1 property is covered
on a blanket basis, handles fluctuating values between locations,
reporting forms easier to handle, named insured may have 100%
insurance to value at each location but only has to carry 90% to value
for all combined locations. Disadvantages- 90% or 100% coinsurance
required, blanket may not be possible because of underwriting
restrictions or form restrictions, statement of values must be obtained
from named insured, rates for one year only, must have same causes of
loss for all covered property, must list all ownership interests with
multiple locations
Agreed Value Ans✓✓✓ Suspends coinsurance clause, expiration date
only not longer than 12 months, can apply to covered property and/or
business income
, Business Personal Property Ans✓✓✓ Furniture and fixtures, machinery
and equipment, stock, all other personal property owned by you and
used in your business, labor, materials or services, furnished or
arranged by you on personal property of others, your use interest as
tenant in improvements and betterments, leased personal property
which you have a contractural obligation.
Coinsurance Formula Ans✓✓✓ Amount carried divided by amount
required (building x's coinsurance clause)
Coverage Ans✓✓✓ We will pay for direct physical loss of or damage to
covered property at the premises described, there must be direct
physical loss or damage, the loss or damage must be to covered
property, the covered property must be at the premises described,
must be caused by or a result from a covered cause of loss.
Coverage Extensions of Building and Personal Property Ans✓✓✓ A.
Newly Acquired or Constructed Property-may extend that insurance
apply to your new buildings while being built on the described premises
and buildings you acquire at locations intended for similar use as the
building, use as a warehouse. B. Personal Effects and Property of
Others- personal effects owned by you, your officers your partners or
members, your managers or your employees, personal property of
others in your care, custody or control, no theft coverage. C. Valuable
Papers and Records- duplicates do not exist, not electronic data, name
perils coverage only, not more than $2500 D. Property Off-premises-
temporarily at a location but not at a location owned/leased/operated,
storage at a leased location, at any fair, trade show or exhibition, not in
