CIC Commercial Property Questions with Correct Solutions 2024

CIC Commercial Property Questions with Correct Solutions 2024 Actual Cash Value (ACV) - Answer -replacement cost less an allowance for insurance depreciation, wear and tear, or obsolescence Advance premium - Answer -initial premium paid to begin coverage on a policy Agreed Value - Answer -a limit agreed upon by the underwriter and Named Insured that is deemed adequate, therefore, suspending the coinsurance clause Bailee - Answer -person or organization that has possession of the property of others, usually for storage, repair, or servicing Bailment - Answer -situation in which property of one has been entrusted to another. A bailment can be for the benefit of either party or both. The degree of care owed by the bailee to the bailor differs according to who has the benefit of the bailment. Coinsurance - Answer -a rating and underwriting concept that is designed to encourage an insured to purchase an amount of insurance nearly equal to or equal to the full value of the property being insured Demand surge - Answer -increased costs of rebuilding following a disaster Final premium - Answer -determined at the end of the policy year based on average reports of valued submitted by the insured Inflation Guard - Answer -a feature that increases the amount of an insurance benefit by a fixed percentage automatically every year, to adjust for inflation Insurable interest - Answer -the existence of potential financial loss, or having a legal or financial relationship in the value of the subject of insurance, on the part of the policy owner and/or beneficiary in the event of a payable Covered Cause of Loss Named Insured - Answer -a person or entity specifically na