CPCU 551: ASSIGNMENT 1 EXAM 2025
QUESTIONS AND ANSWERS
1.1 3 common sources of property coverage for commerical entities - ANS 1. Insurance
Services Office, INC (ISO) 2. Building and Personal Property Coverage Form (BPP) 3. Business
Income Coverage Forms (BIC)
1.1
BPP Form - ANS Building and Personal Property Coverage Form Provides coverage for
buildings, business personal property, and the personal property of others.
1.1
Would manufaturing equipment and finished clothing (stock) stored in Garmentville's
warehouse be considered covered forms of business personal property under the BPP? -
ANS Yes, unless specifically excluded.
1.1
BPP provides additional coverages and coverage extensions for... - ANS debris removal,
preservation of propety, fire department service charges, pollutant cleanup and removal,
increased cost of construction, electronic data, new property, personal effects, property of
others, valuable records, and nonowned detatched trailers.
1.1
Most organizations use insurance as... - ANS a risk control technique to pay for losses.
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, 1.1 What techniques could businesses use to reduce risk of loss from fire? - ANS 1. Separate
heat sources from fuels 2. Install fire detection and suppression systems
1.1 What techniques could businesses use to reduce risk of loss from explosion? - ANS 1.
Explosion suppressors 2. Proper storage, use, and maintenance and inspection of expllosive
materials and equipment
1.1
What techniques could businesses use to reduce risk of loss from windstorm? - ANS 1.
Design structures to withstand strong winds 2. Add storm shutters and blinds for windows 3.
Secure material and equipment outside facility 4. Place trees and utility poles away from
structures
1.1 What techniques could businesses use to reduce risk of loss from water? - ANS 1. Sensor
that detect the presence of water 2. Shut off source of water 3. Notify building management
1.1
What techniques could businesses use to reduce risk of loss from crime? - ANS 1. Secure
items 2. Install security systems 3. Hiring guards 4. Training employees to spot crime-related
activities
1.1 How is the reduction in an organization's income in resulting from an interruption
calculated? - ANS By subtracting netincome that org actually earned in a period of
interruption from amount of net income org could reaonably have been expected to earn
during that period
1.1 Which sections of the BIC forms determine how much the BIC forms pay? - ANS 1. Limits
of Insurance 2. Loss Conditions 3. Additional Condition (Coinsurance)
1.1 How is the amount of BIC coverage a business should purchase calculated? -
ANS Calculate the business's estimated maximum loss (EML) of business income using
business income worksheet.
2 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
QUESTIONS AND ANSWERS
1.1 3 common sources of property coverage for commerical entities - ANS 1. Insurance
Services Office, INC (ISO) 2. Building and Personal Property Coverage Form (BPP) 3. Business
Income Coverage Forms (BIC)
1.1
BPP Form - ANS Building and Personal Property Coverage Form Provides coverage for
buildings, business personal property, and the personal property of others.
1.1
Would manufaturing equipment and finished clothing (stock) stored in Garmentville's
warehouse be considered covered forms of business personal property under the BPP? -
ANS Yes, unless specifically excluded.
1.1
BPP provides additional coverages and coverage extensions for... - ANS debris removal,
preservation of propety, fire department service charges, pollutant cleanup and removal,
increased cost of construction, electronic data, new property, personal effects, property of
others, valuable records, and nonowned detatched trailers.
1.1
Most organizations use insurance as... - ANS a risk control technique to pay for losses.
1 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
, 1.1 What techniques could businesses use to reduce risk of loss from fire? - ANS 1. Separate
heat sources from fuels 2. Install fire detection and suppression systems
1.1 What techniques could businesses use to reduce risk of loss from explosion? - ANS 1.
Explosion suppressors 2. Proper storage, use, and maintenance and inspection of expllosive
materials and equipment
1.1
What techniques could businesses use to reduce risk of loss from windstorm? - ANS 1.
Design structures to withstand strong winds 2. Add storm shutters and blinds for windows 3.
Secure material and equipment outside facility 4. Place trees and utility poles away from
structures
1.1 What techniques could businesses use to reduce risk of loss from water? - ANS 1. Sensor
that detect the presence of water 2. Shut off source of water 3. Notify building management
1.1
What techniques could businesses use to reduce risk of loss from crime? - ANS 1. Secure
items 2. Install security systems 3. Hiring guards 4. Training employees to spot crime-related
activities
1.1 How is the reduction in an organization's income in resulting from an interruption
calculated? - ANS By subtracting netincome that org actually earned in a period of
interruption from amount of net income org could reaonably have been expected to earn
during that period
1.1 Which sections of the BIC forms determine how much the BIC forms pay? - ANS 1. Limits
of Insurance 2. Loss Conditions 3. Additional Condition (Coinsurance)
1.1 How is the amount of BIC coverage a business should purchase calculated? -
ANS Calculate the business's estimated maximum loss (EML) of business income using
business income worksheet.
2 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
