CIC COMMERCIAL PROPERTY CORRECT EXAMS
STUDY GUIDE QUESTIONS AND ANSWERS SURE
A+
✔✔Replacement Cost to Personal Property of Others - ✔✔Available as an Optional
Coverage only if shown in the Declarations
✔✔Weight of snow, ice, or sleet - ✔✔Covered by Broad Form and Special Form, not
Basic Form
✔✔Ordinance or Law Coverage A - ✔✔Loss to the undamaged portion of the building
✔✔Ordinance or Law Coverage B - ✔✔Demolition cost and debris removal of the
undamaged portion
✔✔Ordinance or Law Coverage C - ✔✔Increased cost of construction
✔✔Utility Services exclusion - ✔✔Applies to both direct damage and time element
losses
✔✔Water exclusion - ✔✔Usually can be bought back only by targeted endorsements for
exposures such as flood or sewer/drain/sump discharge
, ✔✔Fungus, wet rot, dry rot, bacteria - ✔✔Limited coverage exists in some cases;
resulting fire or lightning loss can still be covered
✔✔Burst pipes from freezing - ✔✔Covered only if heat was maintained or equipment
was drained and water supply shut off
✔✔Interior rain damage from open window - ✔✔Not covered
✔✔Theft of fur coats - ✔✔Covered but limited to $2,500
✔✔Breakage of fragile articles - ✔✔Display case may be covered, but fragile contents
like porcelain figurines are not under the limitation
✔✔Collapse - ✔✔Additional Coverage when collapse is abrupt and caused by a
covered trigger
✔✔Equipment Breakdown Cause of Loss - ✔✔Addresses explosion of steam apparatus
✔✔Earthquake and Volcanic Eruption endorsement - ✔✔Addresses Earth Movement
with a percentage deductible
✔✔Discharge From Sewer, Drain Or Sump endorsement - ✔✔Addresses certain water
exposure that is not flood related
✔✔Spoilage Coverage - ✔✔Can address certain utility-related spoilage exposures
✔✔Missing property with no physical evidence - ✔✔Not covered
✔✔Jewelry theft on Special Form - ✔✔Covered only up to $2,500
✔✔Business Income definition - ✔✔Net income that would have been earned or
incurred plus continuing normal operating expenses, including payroll
✔✔Extra Expense definition - ✔✔Necessary expenses incurred during the period of
restoration that would not have been incurred without the direct physical loss or damage
✔✔Business Income start - ✔✔Begins 72 hours after direct physical loss or damage
✔✔Extra Expense start - ✔✔Begins immediately at the time of direct physical loss or
damage
STUDY GUIDE QUESTIONS AND ANSWERS SURE
A+
✔✔Replacement Cost to Personal Property of Others - ✔✔Available as an Optional
Coverage only if shown in the Declarations
✔✔Weight of snow, ice, or sleet - ✔✔Covered by Broad Form and Special Form, not
Basic Form
✔✔Ordinance or Law Coverage A - ✔✔Loss to the undamaged portion of the building
✔✔Ordinance or Law Coverage B - ✔✔Demolition cost and debris removal of the
undamaged portion
✔✔Ordinance or Law Coverage C - ✔✔Increased cost of construction
✔✔Utility Services exclusion - ✔✔Applies to both direct damage and time element
losses
✔✔Water exclusion - ✔✔Usually can be bought back only by targeted endorsements for
exposures such as flood or sewer/drain/sump discharge
, ✔✔Fungus, wet rot, dry rot, bacteria - ✔✔Limited coverage exists in some cases;
resulting fire or lightning loss can still be covered
✔✔Burst pipes from freezing - ✔✔Covered only if heat was maintained or equipment
was drained and water supply shut off
✔✔Interior rain damage from open window - ✔✔Not covered
✔✔Theft of fur coats - ✔✔Covered but limited to $2,500
✔✔Breakage of fragile articles - ✔✔Display case may be covered, but fragile contents
like porcelain figurines are not under the limitation
✔✔Collapse - ✔✔Additional Coverage when collapse is abrupt and caused by a
covered trigger
✔✔Equipment Breakdown Cause of Loss - ✔✔Addresses explosion of steam apparatus
✔✔Earthquake and Volcanic Eruption endorsement - ✔✔Addresses Earth Movement
with a percentage deductible
✔✔Discharge From Sewer, Drain Or Sump endorsement - ✔✔Addresses certain water
exposure that is not flood related
✔✔Spoilage Coverage - ✔✔Can address certain utility-related spoilage exposures
✔✔Missing property with no physical evidence - ✔✔Not covered
✔✔Jewelry theft on Special Form - ✔✔Covered only up to $2,500
✔✔Business Income definition - ✔✔Net income that would have been earned or
incurred plus continuing normal operating expenses, including payroll
✔✔Extra Expense definition - ✔✔Necessary expenses incurred during the period of
restoration that would not have been incurred without the direct physical loss or damage
✔✔Business Income start - ✔✔Begins 72 hours after direct physical loss or damage
✔✔Extra Expense start - ✔✔Begins immediately at the time of direct physical loss or
damage
