CIC COMMERCIAL PROPERTY TEST BANK
QUESTIONS WITH VERIFIED ANSWERS
FULL REVIEW
●● What information is found in the Commercial Property Coverage
Part Declarations?
Answer: Effective date, Named Insured, Description of Premises,
Covered Property, Limits, Deductibles, Coinsurance, Causes of Loss
Forms, Optional Coverages, Mortgageholders, Premium.
●● What is the purpose of the Commercial Property Coverage Part
Declarations?
Answer: To identify exactly what property is insured and how it is
insured.
●● EXAM TRAP
Answer: The Common Policy Declarations apply to the entire policy,
while the Commercial Property Coverage Part Declarations apply only
to the Property Coverage Part.
●● What is a Description of Premises?
Answer: The section identifying the insured location(s), building
number(s), occupancy, and construction information.
, ●● Why is the Description of Premises important?
Answer: It identifies exactly which property is insured.
●● What is insurable interest?
Answer: A legal or financial interest in property such that the insured
would suffer a financial loss if the property were damaged.
●● MEMORIZE
Answer: No insurable interest = No coverage.
●● Why can't someone insure another person's property?
Answer: Because they have no insurable interest.
●● How many primary types of insurable interest are there?
Answer: Four.
●● MEMORIZE
Answer: The four types of insurable interest are Ownership, Contractual
Requirement, Responsibility, and Financial Interest.
●● What is Ownership as an insurable interest?
Answer: The Named Insured owns the property.
QUESTIONS WITH VERIFIED ANSWERS
FULL REVIEW
●● What information is found in the Commercial Property Coverage
Part Declarations?
Answer: Effective date, Named Insured, Description of Premises,
Covered Property, Limits, Deductibles, Coinsurance, Causes of Loss
Forms, Optional Coverages, Mortgageholders, Premium.
●● What is the purpose of the Commercial Property Coverage Part
Declarations?
Answer: To identify exactly what property is insured and how it is
insured.
●● EXAM TRAP
Answer: The Common Policy Declarations apply to the entire policy,
while the Commercial Property Coverage Part Declarations apply only
to the Property Coverage Part.
●● What is a Description of Premises?
Answer: The section identifying the insured location(s), building
number(s), occupancy, and construction information.
, ●● Why is the Description of Premises important?
Answer: It identifies exactly which property is insured.
●● What is insurable interest?
Answer: A legal or financial interest in property such that the insured
would suffer a financial loss if the property were damaged.
●● MEMORIZE
Answer: No insurable interest = No coverage.
●● Why can't someone insure another person's property?
Answer: Because they have no insurable interest.
●● How many primary types of insurable interest are there?
Answer: Four.
●● MEMORIZE
Answer: The four types of insurable interest are Ownership, Contractual
Requirement, Responsibility, and Financial Interest.
●● What is Ownership as an insurable interest?
Answer: The Named Insured owns the property.
