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CIC COMMERCIAL PROPERTY EXAM PREP
QUESTIONS WITH SOLUTIONS
What will be paid and for how long for business income -correct-answer-NICE
business income means net income that would have been earned or incurred and
continuing normal operating expenses incurred, including payroll
Elements to Trigger BI Coverage -correct-answer-1. actual loss of business income
2. Due to necessary suspension of operations
3. during the period of restoration
4. cause by direct physical loss to property
5. at the described premises
6. from a covered cause of loss
Define period of restoration -correct-answer-1. begins with covered property loss
with a 72 hour deductible that only applies to business income and not extra
expense
2. Ends when property should be repaired or relocated
3. Policy expiration will not limit the period
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Define Extra Expense -correct-answer-1. Necessary above normal expenses due to
loss
2. needed to continue operations any location
3. reduce the suspension of operations
Additional coverage's found in the BI Coverage forms -correct-answer-1. Civil
authority - damage to a premises within 1 mile that prevents access to property
2. Alterations and New buildings
3. Extended business income
List and describe the optional coverages available to avoid the coinsurance
penalty -correct-answer-1. Maximum period of indemnity
2. Monthly limit of indemnity
3. AV
4. Extended period of indemnity
Maximum period of indemnity loss settlement -correct-answer-coinsurance does
not apply and loss is limited to less of limit of insurance or 120 days following the
beginning of the period of restoration. This can be expensive.
CIC COMMERCIAL PROPERTY EXAM PREP
QUESTIONS WITH SOLUTIONS
What will be paid and for how long for business income -correct-answer-NICE
business income means net income that would have been earned or incurred and
continuing normal operating expenses incurred, including payroll
Elements to Trigger BI Coverage -correct-answer-1. actual loss of business income
2. Due to necessary suspension of operations
3. during the period of restoration
4. cause by direct physical loss to property
5. at the described premises
6. from a covered cause of loss
Define period of restoration -correct-answer-1. begins with covered property loss
with a 72 hour deductible that only applies to business income and not extra
expense
2. Ends when property should be repaired or relocated
3. Policy expiration will not limit the period
, 2|Page
Define Extra Expense -correct-answer-1. Necessary above normal expenses due to
loss
2. needed to continue operations any location
3. reduce the suspension of operations
Additional coverage's found in the BI Coverage forms -correct-answer-1. Civil
authority - damage to a premises within 1 mile that prevents access to property
2. Alterations and New buildings
3. Extended business income
List and describe the optional coverages available to avoid the coinsurance
penalty -correct-answer-1. Maximum period of indemnity
2. Monthly limit of indemnity
3. AV
4. Extended period of indemnity
Maximum period of indemnity loss settlement -correct-answer-coinsurance does
not apply and loss is limited to less of limit of insurance or 120 days following the
beginning of the period of restoration. This can be expensive.
