CISR Commercial Property Study
Set Questions with Correct
Answers
According to the Building and Personal Property Coverage Form, the term, ________,
refers to the structure on the described premises, as well as other elements including
additions and permanently installed machinery and equipment.
a. building
b. covered
c. commercial - Answer- a. building
In addition to the building(s), the insured's ________ is covered while located in or on
the building described in the Declarations.
a. covered
b. violated
c. business personal property - Answer- c. business personal property
Autos held for sale are one example of property _________ under the Building and
Personal Property Coverage form.
a. covered
b. not covered
c. insured - Answer- a. covered
____________ increase the scope of the property that is already covered, as long as
certain conditions are met.
a. additional coverages
b. coverage extensions
c. valuation - Answer- b. coverage extensions
___________ are limited amounts of coverage for specific types of indirect losses or
expenses.
a. additional coverages
b. coverage extensions
c. valuation - Answer- a. additional coverages
, The Additional Coverage of Preservation of Property will cover any direct physical loss
or damage for up to ______ days if property needs to be moved or stored in another
location to prevent damage.
a. 60
b. 90
c. 30 - Answer- c. 30
If a building has been vacant for more than ______ days, payments for covered losses
will be reduced by 15%.
a. 60
b. 90
c. 30 - Answer- a. 60
Insurance companies determine a property's financial worth in the event of a loss
through the process of valuation.
a. additional coverages
b. coverage extensions
c. valuation - Answer- c. valuation
The Mortgage holders clause is designed to preserve the mortgage holder's rights, even
if the named insured has ________ conditions of the insurance contract.
a. 30
b. violated
c. covered - Answer- b. violated
Personal property of others is never covered under the Building and Personal Property
Coverage Form.
true or false - Answer- false
A business owner has a building that has a replacement cost value of $1,000,000. He
decides to insure it for $600,000. Assuming an 80% coinsurance requirement, and a
$1,000 deductible, how much would the policy pay on a $10,000 loss?
a. $7,000
b. $6,500
c. $7,500
d. $9,000 - Answer- b. $6,500
Butler Properties owns three buildings that are leased to others for retail use. What is
the term for coverage that covers all of the buildings under a single limit of insurance?
a. blanket insurance
b. named perils coverage
c. specific insurance
d. scheduled insurance - Answer- a. blanket insurance
Which of the following best describes the structure of a Commercial Package Policy?
Set Questions with Correct
Answers
According to the Building and Personal Property Coverage Form, the term, ________,
refers to the structure on the described premises, as well as other elements including
additions and permanently installed machinery and equipment.
a. building
b. covered
c. commercial - Answer- a. building
In addition to the building(s), the insured's ________ is covered while located in or on
the building described in the Declarations.
a. covered
b. violated
c. business personal property - Answer- c. business personal property
Autos held for sale are one example of property _________ under the Building and
Personal Property Coverage form.
a. covered
b. not covered
c. insured - Answer- a. covered
____________ increase the scope of the property that is already covered, as long as
certain conditions are met.
a. additional coverages
b. coverage extensions
c. valuation - Answer- b. coverage extensions
___________ are limited amounts of coverage for specific types of indirect losses or
expenses.
a. additional coverages
b. coverage extensions
c. valuation - Answer- a. additional coverages
, The Additional Coverage of Preservation of Property will cover any direct physical loss
or damage for up to ______ days if property needs to be moved or stored in another
location to prevent damage.
a. 60
b. 90
c. 30 - Answer- c. 30
If a building has been vacant for more than ______ days, payments for covered losses
will be reduced by 15%.
a. 60
b. 90
c. 30 - Answer- a. 60
Insurance companies determine a property's financial worth in the event of a loss
through the process of valuation.
a. additional coverages
b. coverage extensions
c. valuation - Answer- c. valuation
The Mortgage holders clause is designed to preserve the mortgage holder's rights, even
if the named insured has ________ conditions of the insurance contract.
a. 30
b. violated
c. covered - Answer- b. violated
Personal property of others is never covered under the Building and Personal Property
Coverage Form.
true or false - Answer- false
A business owner has a building that has a replacement cost value of $1,000,000. He
decides to insure it for $600,000. Assuming an 80% coinsurance requirement, and a
$1,000 deductible, how much would the policy pay on a $10,000 loss?
a. $7,000
b. $6,500
c. $7,500
d. $9,000 - Answer- b. $6,500
Butler Properties owns three buildings that are leased to others for retail use. What is
the term for coverage that covers all of the buildings under a single limit of insurance?
a. blanket insurance
b. named perils coverage
c. specific insurance
d. scheduled insurance - Answer- a. blanket insurance
Which of the following best describes the structure of a Commercial Package Policy?
