CPCU 551 - Assignment 2 Questions and Answers Graded A+
2.1 The Insurance Services Office, Inc (ISO) Building and Personal Property Coverage Form (BPP) can
cover any combination of these 3 broad categories of property - Answers 1. Building 2. Your Business
Personal Property 3. Personal Propety of Others
2.1 If a business owns an office building and insures it under a BPP and only the building is listed in the
declarations page would equipment that the business owns and uses to clean and maintain the building
be considered covered property under its BPP? - Answers Yes - equipment would be covered property
under the BPP because the definiton of "building" includes personal propety owned by the insured and
used to maintain or service the building or its premises.
2.1 BPP can be purchased as ______ OR _________. - Answers the ONLY coverage in a monoline
commerical property policy or as part of a commerical package policy (CPP_
2.1 CPP (Commerical Package Policy) - Answers A CPP combines multiple types of coverage, such as
property and liability coverage, under a single policy and offers flexbility to insureds by allowing them to
bundle various types of coverages under one policy.
2.1 Categories of property that are covered in a commerical property coverage policy containing the BPP
are indicated on - Answers the commerical property declarations page with a limit of insurance entered
for each
2.1 If no entry appears for a category (example:Building) on the commerical propety declarations page
of a commerical property coverage policy containing the BPP that means.... - Answers No coverage
applies to that category.
2.1 Will the damage be covered under the businss's BPP? A medical center has an office on a large lot
that contains an open field and a pond. The medical center installed several benches and picnic tables
about 75 feet from its office building along a walking path that circles the pond. The benches and tables
have bee vandalized. - Answers Yes, the damage to the benches and tables would be covered under the
Business Personal Property category of the BPP because they're located in the open and within 100 ft of
the insured building.
2.1 Classes of property (or kinds of property losses) that do not qualify as covered propety in the BPP are
listed in - Answers the BPP's Property Not Covered section
2.1 Common reasons for BPP's Property Not Covered - Answers 1. Illegal to insure: example, smuggled
goods being held for sale. 2. Much less susceptible to loss by most perils insured against: example,
building foundations below the lowest basement floor or surface of the ground 3. Able to be insured
more advantageously under other forms: example, money, securities, auto, aircraft
2.1 Insurance can be made available for almost all items listed in the BPP's Property Not Covered section
by - Answers Endorsement.
, 2.1 Only ________ is totally uninsurable. - Answers Contraband or property in the course of illegal
transportation or trade
2.1 Special limits of liability - Answers Internal dollar limits on certain specified classes of property that
apply regardless of the overall policy limit.
2.1
Coinsurance - Answers An insurance-to-value provision in many property insurance policies providing
that if the property is underinsured, the amount that an insurer will pay for a covered loss is reduced
2.1
Anti-concurrent causation wording - Answers Wording in an insurance policy that eliminates coverage
for a loss that was caused by more than one peril if one or more of the perils is subject to a policy
exclusion.
2.1 In the BPP - Property insured under another coverage form in the same policy or any other poilicy in
which the property is __________ is listed as property not covered. However, it is not totally exluded,
the BPP covers such property in __________. - Answers "More specifically described" the BPP covers
such property in excess of the other insurance.
2.1 A financial company has a computer system valued at $150,000 under the general category of
business personal property in its BPP. However, the system is also insured for $100,000 under a
separate computer equipment policy issued by a different insurer which specifically describes the
computer system. If the computer system is destroyed by a fire how much of the loss would each
insurer pay? - Answers The insurer that issued the computer equipment policy would pay its limit of
$100,000 and the insurer that issued the BPP would then pay the rest of the loss up to the business
personal property limit.
2.1 Animals are not property covered but if they are either ______ or ____________ then the animals
are not excluded under the Property Not Covered. - Answers 1. Owned by others and being boarded by
the insured 2. Owned by the insured and being held as stock inside a building (such as a pet shop)
2.2 Special limits of liability - Answers Sometimes called sublimits. Internal dollar limits on certain
specified classes of property that apply regardless of the overall policy limit.
2.2 Special limits of liability are typically - Answers less than the upper limit for the policy
2.2 How could you increase the limits for many of the BPP's additional coverages and coverage
extensions? - Answers Limits of the BPP's additional coverages and coverage extensions can be
increased by inputting higher limits in the delcarations, adding an appropriate coverage endorsement, or
buying another type of policy to supplement the BPP.
2.1 The Insurance Services Office, Inc (ISO) Building and Personal Property Coverage Form (BPP) can
cover any combination of these 3 broad categories of property - Answers 1. Building 2. Your Business
Personal Property 3. Personal Propety of Others
2.1 If a business owns an office building and insures it under a BPP and only the building is listed in the
declarations page would equipment that the business owns and uses to clean and maintain the building
be considered covered property under its BPP? - Answers Yes - equipment would be covered property
under the BPP because the definiton of "building" includes personal propety owned by the insured and
used to maintain or service the building or its premises.
2.1 BPP can be purchased as ______ OR _________. - Answers the ONLY coverage in a monoline
commerical property policy or as part of a commerical package policy (CPP_
2.1 CPP (Commerical Package Policy) - Answers A CPP combines multiple types of coverage, such as
property and liability coverage, under a single policy and offers flexbility to insureds by allowing them to
bundle various types of coverages under one policy.
2.1 Categories of property that are covered in a commerical property coverage policy containing the BPP
are indicated on - Answers the commerical property declarations page with a limit of insurance entered
for each
2.1 If no entry appears for a category (example:Building) on the commerical propety declarations page
of a commerical property coverage policy containing the BPP that means.... - Answers No coverage
applies to that category.
2.1 Will the damage be covered under the businss's BPP? A medical center has an office on a large lot
that contains an open field and a pond. The medical center installed several benches and picnic tables
about 75 feet from its office building along a walking path that circles the pond. The benches and tables
have bee vandalized. - Answers Yes, the damage to the benches and tables would be covered under the
Business Personal Property category of the BPP because they're located in the open and within 100 ft of
the insured building.
2.1 Classes of property (or kinds of property losses) that do not qualify as covered propety in the BPP are
listed in - Answers the BPP's Property Not Covered section
2.1 Common reasons for BPP's Property Not Covered - Answers 1. Illegal to insure: example, smuggled
goods being held for sale. 2. Much less susceptible to loss by most perils insured against: example,
building foundations below the lowest basement floor or surface of the ground 3. Able to be insured
more advantageously under other forms: example, money, securities, auto, aircraft
2.1 Insurance can be made available for almost all items listed in the BPP's Property Not Covered section
by - Answers Endorsement.
, 2.1 Only ________ is totally uninsurable. - Answers Contraband or property in the course of illegal
transportation or trade
2.1 Special limits of liability - Answers Internal dollar limits on certain specified classes of property that
apply regardless of the overall policy limit.
2.1
Coinsurance - Answers An insurance-to-value provision in many property insurance policies providing
that if the property is underinsured, the amount that an insurer will pay for a covered loss is reduced
2.1
Anti-concurrent causation wording - Answers Wording in an insurance policy that eliminates coverage
for a loss that was caused by more than one peril if one or more of the perils is subject to a policy
exclusion.
2.1 In the BPP - Property insured under another coverage form in the same policy or any other poilicy in
which the property is __________ is listed as property not covered. However, it is not totally exluded,
the BPP covers such property in __________. - Answers "More specifically described" the BPP covers
such property in excess of the other insurance.
2.1 A financial company has a computer system valued at $150,000 under the general category of
business personal property in its BPP. However, the system is also insured for $100,000 under a
separate computer equipment policy issued by a different insurer which specifically describes the
computer system. If the computer system is destroyed by a fire how much of the loss would each
insurer pay? - Answers The insurer that issued the computer equipment policy would pay its limit of
$100,000 and the insurer that issued the BPP would then pay the rest of the loss up to the business
personal property limit.
2.1 Animals are not property covered but if they are either ______ or ____________ then the animals
are not excluded under the Property Not Covered. - Answers 1. Owned by others and being boarded by
the insured 2. Owned by the insured and being held as stock inside a building (such as a pet shop)
2.2 Special limits of liability - Answers Sometimes called sublimits. Internal dollar limits on certain
specified classes of property that apply regardless of the overall policy limit.
2.2 Special limits of liability are typically - Answers less than the upper limit for the policy
2.2 How could you increase the limits for many of the BPP's additional coverages and coverage
extensions? - Answers Limits of the BPP's additional coverages and coverage extensions can be
increased by inputting higher limits in the delcarations, adding an appropriate coverage endorsement, or
buying another type of policy to supplement the BPP.
