RMIN 5100S UPDATED 2026 EXAM SCRIPT QUESTIONS
AND ANSWERS RATED A+
✔✔property coinsurance key points - ✔✔When insurers are confident that insureds are
insuring to full value, the insurance companies can apply a discounted rate to all
insureds. This achieves equity in rating.
However, it is impractical/inefficient for the insurer to verify all values at policy inception
Therefore, insurers verify values at the time of a loss (claim)
If the insured has not insured their property to its full value, they are penalized by
receiving a lower payment for the claim
✔✔components of a commercial package policy - ✔✔common declarations
common policy conditions
2+ coverage parts
✔✔What's included in a commercial property coverage part? - ✔✔1. Commercial
property declarations
2. Commercial property coverage forms - what types of property are covered?
3. Cause of loss form(s) - what perils are covered?
4. Commercial property conditions - these are in addition to the common conditions
5. Endorsements - these change the policy forms above (may add or remove coverage)
✔✔commercial property declarations - ✔✔contains info that pertains specifically to the
property insurance
Property description and location (address/geo-code)
Types of coverage provided and amounts (limits) of insurance
Covered causes of loss (basic, broad, or special)
Deductible(s)
Coinsurance percentages
List of mortgagees
List of coverage forms and endorsements
Any optional coverages
✔✔commercial property coverage forms - ✔✔- ISOs CPP program includes several
different commercial property coverage forms
Essentially, this form tells you what property is covered
Commercial property coverage forms typically include:
Insuring agreement - we will pay for direct physical loss to...
Covered property
Property not covered
Additional coverages and/or coverage extensions
Definitions
,✔✔cause of loss forms - ✔✔Basic - includes coverage for 11 perils
Broad - same perils as basic plus 3 more
Special - includes open perils coverage
✔✔BPP coverage form can cover any combo of 3 broad categories of property: - ✔✔1.
building
2. your business personal property
3. personal property of others
✔✔BPP - building - ✔✔a. Buildings and structures described in the declarations
b. Completed additions to covered buildings
c. Permanently installed fixtures, machinery, and equipment (indoor and outdoor)
d. Personal property owned by the insured and used to maintain or service the premises
e. Additions, alterations, or repairs in progress, including materials, equipment, and
supplies in connection with that work (within 100 feet or premises)
✔✔BPP - your business personal property - ✔✔must be located in building or within 100
feet of building)
a. Furniture and fixtures
b. Machinery and equipment
c. "Stock" (anything in quotes is defined by policy - look at this definition)
d. Personal property owned by you and used in your business
e. Labor, materials, or services furnished or arranged by you on personal property of
others (but not the actual personal property that belongs to someone else)
f. Improvements and betterments
g. Leased personal property for which you have a contractual responsibility to insure
✔✔BPP - personal property of others - ✔✔a. Must be in the insured's care, custody,
and control
b. Located in the building/structure described in the declarations or within 100 feet of
building/structure/premises
c. Payment is made to the property owner (not the insured)
d. Payment is not made based on legal liability
✔✔property NOT covered in BPP - ✔✔1. Accounts, bills, currency (money, security, &
similar property)
2. Animals (exceptions for pet stores - considered "stock")
3. Automobiles held for sale
4. Bridges, roadways, walks, patios, paved surfaces
5. Contraband, property in illegal transportation, or trade
6. Cost of excavations, grading, backfilling
7. Foundations of buildings and structures
8. Land, water, growing crops or lawn
9. Personal property while airborne or waterborne
10. Bulkheads, pilings, piers, wharves, and docks
, 11. Property that is covered elsewhere
12. Retaining walls that are not part of a building
13. Underground pipes, flues, or drains
14. Electronic data
15. Cost to replace or restore information
16. Vehicles or self-propelled machines
17. The following property while outside the building: grain, hay, straw, or other crops &
fences, radio or TV antennas, satellite dishes and their wiring, masts or towers, trees,
shrubs, or plants (unless "stock" or part of a vegetated roof)
✔✔additional coverages BPP - ✔✔these coverages are included regardless of which of
the property coverages are present, these may address additional claims costs not
addressed in the property coverages (ex: fire department service charge), & in some
instances, a peril or property is excluded, but the limited coverage is added back within
the additional coverages (ex: electronic data)
✔✔list of BPP additional coverages (6) - ✔✔1. debris removal
2. preservation of property
3. fire department service charge
4. pollutant clean-up and removal
5. increased cost of construction
6. electronic data
✔✔BPP additional coverage - debris removal - ✔✔(up to $25,000 in addition to policy
limit)
a. This coverage is very complicated
b. Covers cost of removing debris of covered property resulting from a covered cause of
loss
c. Will pay up to 25% of the DIRECT (damage to building -> indirect: loss in income)
loss for debris removal
d. If direct loss plus debris removal exceeds the Limit of Insurance, this coverage will
pay up to another $25,000 for debris removal
e. Example slide 5 & on policy
✔✔list of BPP coverage extensions (7) - ✔✔1. newly acquired or constructed property
2. personal effects and property of others
3. valuable papers and records (other than electronic data)
4. property off-premises
5. outdoor property
6. non-owned detached trailers
7. business personal property temporarily in portable storage units
✔✔BPP additional coverage - preservation of property - ✔✔a. When it is necessary to
move covered property to protect it from a covered cause of loss, this provides
coverage for that property while it is being moved or temporarily stored for up to 30 days
AND ANSWERS RATED A+
✔✔property coinsurance key points - ✔✔When insurers are confident that insureds are
insuring to full value, the insurance companies can apply a discounted rate to all
insureds. This achieves equity in rating.
However, it is impractical/inefficient for the insurer to verify all values at policy inception
Therefore, insurers verify values at the time of a loss (claim)
If the insured has not insured their property to its full value, they are penalized by
receiving a lower payment for the claim
✔✔components of a commercial package policy - ✔✔common declarations
common policy conditions
2+ coverage parts
✔✔What's included in a commercial property coverage part? - ✔✔1. Commercial
property declarations
2. Commercial property coverage forms - what types of property are covered?
3. Cause of loss form(s) - what perils are covered?
4. Commercial property conditions - these are in addition to the common conditions
5. Endorsements - these change the policy forms above (may add or remove coverage)
✔✔commercial property declarations - ✔✔contains info that pertains specifically to the
property insurance
Property description and location (address/geo-code)
Types of coverage provided and amounts (limits) of insurance
Covered causes of loss (basic, broad, or special)
Deductible(s)
Coinsurance percentages
List of mortgagees
List of coverage forms and endorsements
Any optional coverages
✔✔commercial property coverage forms - ✔✔- ISOs CPP program includes several
different commercial property coverage forms
Essentially, this form tells you what property is covered
Commercial property coverage forms typically include:
Insuring agreement - we will pay for direct physical loss to...
Covered property
Property not covered
Additional coverages and/or coverage extensions
Definitions
,✔✔cause of loss forms - ✔✔Basic - includes coverage for 11 perils
Broad - same perils as basic plus 3 more
Special - includes open perils coverage
✔✔BPP coverage form can cover any combo of 3 broad categories of property: - ✔✔1.
building
2. your business personal property
3. personal property of others
✔✔BPP - building - ✔✔a. Buildings and structures described in the declarations
b. Completed additions to covered buildings
c. Permanently installed fixtures, machinery, and equipment (indoor and outdoor)
d. Personal property owned by the insured and used to maintain or service the premises
e. Additions, alterations, or repairs in progress, including materials, equipment, and
supplies in connection with that work (within 100 feet or premises)
✔✔BPP - your business personal property - ✔✔must be located in building or within 100
feet of building)
a. Furniture and fixtures
b. Machinery and equipment
c. "Stock" (anything in quotes is defined by policy - look at this definition)
d. Personal property owned by you and used in your business
e. Labor, materials, or services furnished or arranged by you on personal property of
others (but not the actual personal property that belongs to someone else)
f. Improvements and betterments
g. Leased personal property for which you have a contractual responsibility to insure
✔✔BPP - personal property of others - ✔✔a. Must be in the insured's care, custody,
and control
b. Located in the building/structure described in the declarations or within 100 feet of
building/structure/premises
c. Payment is made to the property owner (not the insured)
d. Payment is not made based on legal liability
✔✔property NOT covered in BPP - ✔✔1. Accounts, bills, currency (money, security, &
similar property)
2. Animals (exceptions for pet stores - considered "stock")
3. Automobiles held for sale
4. Bridges, roadways, walks, patios, paved surfaces
5. Contraband, property in illegal transportation, or trade
6. Cost of excavations, grading, backfilling
7. Foundations of buildings and structures
8. Land, water, growing crops or lawn
9. Personal property while airborne or waterborne
10. Bulkheads, pilings, piers, wharves, and docks
, 11. Property that is covered elsewhere
12. Retaining walls that are not part of a building
13. Underground pipes, flues, or drains
14. Electronic data
15. Cost to replace or restore information
16. Vehicles or self-propelled machines
17. The following property while outside the building: grain, hay, straw, or other crops &
fences, radio or TV antennas, satellite dishes and their wiring, masts or towers, trees,
shrubs, or plants (unless "stock" or part of a vegetated roof)
✔✔additional coverages BPP - ✔✔these coverages are included regardless of which of
the property coverages are present, these may address additional claims costs not
addressed in the property coverages (ex: fire department service charge), & in some
instances, a peril or property is excluded, but the limited coverage is added back within
the additional coverages (ex: electronic data)
✔✔list of BPP additional coverages (6) - ✔✔1. debris removal
2. preservation of property
3. fire department service charge
4. pollutant clean-up and removal
5. increased cost of construction
6. electronic data
✔✔BPP additional coverage - debris removal - ✔✔(up to $25,000 in addition to policy
limit)
a. This coverage is very complicated
b. Covers cost of removing debris of covered property resulting from a covered cause of
loss
c. Will pay up to 25% of the DIRECT (damage to building -> indirect: loss in income)
loss for debris removal
d. If direct loss plus debris removal exceeds the Limit of Insurance, this coverage will
pay up to another $25,000 for debris removal
e. Example slide 5 & on policy
✔✔list of BPP coverage extensions (7) - ✔✔1. newly acquired or constructed property
2. personal effects and property of others
3. valuable papers and records (other than electronic data)
4. property off-premises
5. outdoor property
6. non-owned detached trailers
7. business personal property temporarily in portable storage units
✔✔BPP additional coverage - preservation of property - ✔✔a. When it is necessary to
move covered property to protect it from a covered cause of loss, this provides
coverage for that property while it is being moved or temporarily stored for up to 30 days
