CISR - Commercial Property Exam Questions With 100% Accurate Answers

Define ACV - ANSWER-Replacement cost minus depreciation Define Replacement Cost - ANSWER-Amount needed to replace with like kind and quality Define Functional Replacement Value - ANSWER-Like kind/quality not feasible - limit needed to serve the same purpose Coinsurance Formula - ANSWER-did/should x loss = loss payment - deductible How do you find "should" in coinsurance formula? - ANSWER-should = limit x coinsurance % Define agreed value - ANSWER-Up front agreement on a fixed value - suspends coinsurance if conditions are met What's the difference between specific, schedule, and blanket coverage? - ANSWER-Specific: one location, fixed amount separately to each item. Schedule: multiple locations, specific limit per type of property at each location. Blanket: one limit applies to two or more items regardless. Name 3 ways to provide coverage for fluctuating business PP values: - ANSWER-Blanket, Peak Season Endorsement (CP 12 30), Value Reporting Identify the types of Commercial Property exposed to loss: - ANSWER-Real & Personal List parties that could have an insurable interest in the property: - ANSWER-Owners, Mortgage, Lessees, Signers of a Contract