CIC COMMERCIAL MULTILINE STUDY EXAMS GUIDE
QUESTIONS AND ANSWERS SURE A+
✔✔direct damage basis (bailee) - ✔✔-coverage applies no matter if the bailee is legally
liable for the loss/damage
-typically pays for damages to the property and any charges the bailee earned from the
work performed
-usually purchased to maintain customer goodwill and avoid disputes over the bailee is
legally liable
✔✔Property Not Coverage (Bailee Coverage) - ✔✔• Aircraft/watercraft
• Contraband or property in the course of illegal transportation or trade
• Furs/fur-trimmed garments
• Jewelry, precious or semi-precious stones, and precious metals
• Money and securities
• Property accepted by a processor without a charge for services
• Self-propelled vehicles designed for highway use
• Waterborne property except while in transit in the custody of a carrier for hire
✔✔Property Covered
Miscellaneous Bailee - Processor Floater (IM 7501 04 04) - ✔✔-covers property in the
insured's care, custody, AND control for processing
-"and" means that all three elements are necessary
-Coverage territory: United States, its territories and possessions, Canada, and Puerto
Rico
✔✔4 supplemental coverages of bailee coverage (miscellaneous bailee processor
floater) - ✔✔1.)Property In Storage
1a) after processing, must be at described location, and receipt
2.) Off-Site Property
2a) $5K in coverage, property temporarily off site, that a premise that isn't described
,3.) Transit.
3a) $5K while property is in transit
4.)Pollutant Cleanup And Removal
4a) $10K, expenses to extract pollutants
✔✔Debris Removal: miscellaneous bailee processor floater - ✔✔pay to remove the
debris of covered property caused by a covered peril
sublimit- 25% of the amount paid for direct physical loss +$5000 in additional to use
✔✔Excluded Causes of Loss in Miscellaneous Bailee - Processor Floater (IM 7501 04
04) - ✔✔-Civil authority (RD)
-Earth movement or volcanic eruption (RD)
-Flood (RD)
-Nuclear Hazard (RD)
-Sewer Backup and Water Below the Surface (RD)
-War and military action
-Contamination or deterioration
-Criminal, Fraudulent,
Dishonest, Or Illegal Acts
-Electrical currents (RD)
-loss of use,
-mechanical breakdown (RD)
-missing property (could be covered if missing by person hired)
-pollutants (RD)
-processing work (RD)
-Temperature/humidity (RD)
-Theft from an unattended vehicle
, -Voluntary parting
-Wear and tear
**RD: There is coverage for resultant damage by certain perils
✔✔different options to settle claims under a bailee policy - ✔✔-ACV
-Pair or set
(damage to something that is a pair or set, we will pay a reasonable portion of the total
value)
-Loss to parts (one part of multiple parts is damaged, based on value of damaged item)
✔✔Loss to Parts valuation - ✔✔-The value of a lost or damaged part of an item that
consists of several parts when it is complete is based on the value of only the lost or
damaged part or the cost to repair or replace it.
✔✔Whose interests can be covered under Builders Risk - ✔✔• Project owner/developer
• General contractor
• Subcontractors of every tier
Construction manager
• Architects and engineers
• Material suppliers
• Mortgagees and lenders
-Contracts dedicates this
✔✔Advantages to including numerous parties as insureds - ✔✔-compliance with
contract requirements
-more efficient; creates streamlined claims settlement process
-all insureds have direct rights under the policy
-helps to avoid litigation
-limits subrogation
✔✔disadvantages to including numerous parties as insureds (BR) - ✔✔-claim payment
could be payable to all named insds
-misrepresentation, concealment, or fraud of any insured could void coverage
✔✔Property Covered: Builders Risk - ✔✔1- property that will become a permanent part
of the described project
(building, structures, materials part of permanent building, foundation, excavating,
grading, etc)
2-other property that will not, temporary structures or temporary works (scaffolding,
temporary fencing, temporary structures)
QUESTIONS AND ANSWERS SURE A+
✔✔direct damage basis (bailee) - ✔✔-coverage applies no matter if the bailee is legally
liable for the loss/damage
-typically pays for damages to the property and any charges the bailee earned from the
work performed
-usually purchased to maintain customer goodwill and avoid disputes over the bailee is
legally liable
✔✔Property Not Coverage (Bailee Coverage) - ✔✔• Aircraft/watercraft
• Contraband or property in the course of illegal transportation or trade
• Furs/fur-trimmed garments
• Jewelry, precious or semi-precious stones, and precious metals
• Money and securities
• Property accepted by a processor without a charge for services
• Self-propelled vehicles designed for highway use
• Waterborne property except while in transit in the custody of a carrier for hire
✔✔Property Covered
Miscellaneous Bailee - Processor Floater (IM 7501 04 04) - ✔✔-covers property in the
insured's care, custody, AND control for processing
-"and" means that all three elements are necessary
-Coverage territory: United States, its territories and possessions, Canada, and Puerto
Rico
✔✔4 supplemental coverages of bailee coverage (miscellaneous bailee processor
floater) - ✔✔1.)Property In Storage
1a) after processing, must be at described location, and receipt
2.) Off-Site Property
2a) $5K in coverage, property temporarily off site, that a premise that isn't described
,3.) Transit.
3a) $5K while property is in transit
4.)Pollutant Cleanup And Removal
4a) $10K, expenses to extract pollutants
✔✔Debris Removal: miscellaneous bailee processor floater - ✔✔pay to remove the
debris of covered property caused by a covered peril
sublimit- 25% of the amount paid for direct physical loss +$5000 in additional to use
✔✔Excluded Causes of Loss in Miscellaneous Bailee - Processor Floater (IM 7501 04
04) - ✔✔-Civil authority (RD)
-Earth movement or volcanic eruption (RD)
-Flood (RD)
-Nuclear Hazard (RD)
-Sewer Backup and Water Below the Surface (RD)
-War and military action
-Contamination or deterioration
-Criminal, Fraudulent,
Dishonest, Or Illegal Acts
-Electrical currents (RD)
-loss of use,
-mechanical breakdown (RD)
-missing property (could be covered if missing by person hired)
-pollutants (RD)
-processing work (RD)
-Temperature/humidity (RD)
-Theft from an unattended vehicle
, -Voluntary parting
-Wear and tear
**RD: There is coverage for resultant damage by certain perils
✔✔different options to settle claims under a bailee policy - ✔✔-ACV
-Pair or set
(damage to something that is a pair or set, we will pay a reasonable portion of the total
value)
-Loss to parts (one part of multiple parts is damaged, based on value of damaged item)
✔✔Loss to Parts valuation - ✔✔-The value of a lost or damaged part of an item that
consists of several parts when it is complete is based on the value of only the lost or
damaged part or the cost to repair or replace it.
✔✔Whose interests can be covered under Builders Risk - ✔✔• Project owner/developer
• General contractor
• Subcontractors of every tier
Construction manager
• Architects and engineers
• Material suppliers
• Mortgagees and lenders
-Contracts dedicates this
✔✔Advantages to including numerous parties as insureds - ✔✔-compliance with
contract requirements
-more efficient; creates streamlined claims settlement process
-all insureds have direct rights under the policy
-helps to avoid litigation
-limits subrogation
✔✔disadvantages to including numerous parties as insureds (BR) - ✔✔-claim payment
could be payable to all named insds
-misrepresentation, concealment, or fraud of any insured could void coverage
✔✔Property Covered: Builders Risk - ✔✔1- property that will become a permanent part
of the described project
(building, structures, materials part of permanent building, foundation, excavating,
grading, etc)
2-other property that will not, temporary structures or temporary works (scaffolding,
temporary fencing, temporary structures)
