CDFA EXAM STUDY GUIDE CLOSING
SCRIPT UPDATED QUESTIONS AND
ANSWERS VIEW AHEAD PREP MATERIAL
SOLVED
⩥ Learning Objective 1B - How does Coinsurance apply?
Answer: Amount Carried/Amount Required x Loss = Recovery-
Deductible (Settlement) or
"Did Have"/"Should Have" x Loss = Recovery - Deductible
⩥ Components of "Common Policy Dec" IL DS 00 09 08
Answer: 1. Named Insured
2. Mailing Address
3. Policy Period
4. Biz Description
5. Premium for Coverage Parts
6. Forms Applicable
⩥ Components of "Common Policy Conditions" IL 00 07 11 98
Answer: 1. Cancellation
2. Changes
,3. Examination of your Books
4. Inspections & Surveys
5. Premiums
6. Transfer of Your Rights and Duties
⩥ Components of "Commercial Property Dec" CP DS 00 10 00
Answer: 1. Effective Date
2. Named Insured
3. Description of Premises
4. Coverages Provided
⩥ Components of "Commercial Property Conditions" CP 00 90 07 08
Answer: A. Concealment, Misrepresentation, or Fraud
B. Control of Property
C. Insurance Under 2 or More Coverages
D. Legal Action Against Us (within 2 years, only if all terms met)
E. Liberalization (if coverage is broadened on newly issued policies,
those policies already in force will have the benefit of the broadened
coverage)
F. No Benefit to Bailee (protects named Insured, not Bailee)
G. Other Insurance (pro rata if other insurance)
H. Policy Period, Coverage Territory (US, its territories, PR, and
Canada)
, ⩥ Learning Objective 1C: Who has the rights of recovery in the event of
a loss (Review of "Transfer of Rights of Recovery Against Others to
Us")?
Answer: 1. Can waive rights or recovery against anyone....prior to a loss
and in writing.
2. Can waive after a loss only if in writing and the responsible party is:
a. Another Insured
b. A business owned or controlled by Named Insured or a business that
owns or controls the named insured
c. A tenant of the named insured. (Wegmans example)
⩥ ACV vs Replacement Cost
Answer: ACV - Default valuation method of Property policies. Cost to
replace covered property at time of the loss, minus depreciation.
RC - Valuation commonly desired, but usually must be requested.
Replace covered property at a premises with like kind and quality in
today's dollars. Triggered with (X) on Dec Page.
⩥ Agreed Value
SCRIPT UPDATED QUESTIONS AND
ANSWERS VIEW AHEAD PREP MATERIAL
SOLVED
⩥ Learning Objective 1B - How does Coinsurance apply?
Answer: Amount Carried/Amount Required x Loss = Recovery-
Deductible (Settlement) or
"Did Have"/"Should Have" x Loss = Recovery - Deductible
⩥ Components of "Common Policy Dec" IL DS 00 09 08
Answer: 1. Named Insured
2. Mailing Address
3. Policy Period
4. Biz Description
5. Premium for Coverage Parts
6. Forms Applicable
⩥ Components of "Common Policy Conditions" IL 00 07 11 98
Answer: 1. Cancellation
2. Changes
,3. Examination of your Books
4. Inspections & Surveys
5. Premiums
6. Transfer of Your Rights and Duties
⩥ Components of "Commercial Property Dec" CP DS 00 10 00
Answer: 1. Effective Date
2. Named Insured
3. Description of Premises
4. Coverages Provided
⩥ Components of "Commercial Property Conditions" CP 00 90 07 08
Answer: A. Concealment, Misrepresentation, or Fraud
B. Control of Property
C. Insurance Under 2 or More Coverages
D. Legal Action Against Us (within 2 years, only if all terms met)
E. Liberalization (if coverage is broadened on newly issued policies,
those policies already in force will have the benefit of the broadened
coverage)
F. No Benefit to Bailee (protects named Insured, not Bailee)
G. Other Insurance (pro rata if other insurance)
H. Policy Period, Coverage Territory (US, its territories, PR, and
Canada)
, ⩥ Learning Objective 1C: Who has the rights of recovery in the event of
a loss (Review of "Transfer of Rights of Recovery Against Others to
Us")?
Answer: 1. Can waive rights or recovery against anyone....prior to a loss
and in writing.
2. Can waive after a loss only if in writing and the responsible party is:
a. Another Insured
b. A business owned or controlled by Named Insured or a business that
owns or controls the named insured
c. A tenant of the named insured. (Wegmans example)
⩥ ACV vs Replacement Cost
Answer: ACV - Default valuation method of Property policies. Cost to
replace covered property at time of the loss, minus depreciation.
RC - Valuation commonly desired, but usually must be requested.
Replace covered property at a premises with like kind and quality in
today's dollars. Triggered with (X) on Dec Page.
⩥ Agreed Value
