AINS 23 - Segment A
Which one of the following statements is correct?
a. They apply to all coverage forms included in a commercial property coverage part, unless a coverage
form contains a condition to the contrary.
b. They are an optional component of the commercial property coverage part, used at the underwriter's
discretion.
c. They are printed in bold type on the commercial property declarations page.
d. They provide definitions for words and phrases used in the policy to which they are attached. -
Answer-a. They apply to all coverage forms included in a commercial property coverage part, unless a
coverage form contains a condition to the contrary.
Which one of the following is an assumption required by the argument above?
a. Specialized coverage forms exist for insuring buildings under construction, condominium association
buildings, and the property of condominium commercial unit owners.
b. A commercial property coverage part cannot include more than one commercial property coverage
form.
c. Commercial Property Conditions specify the causes of loss for which the described property is
covered.
d. Commercial property coverage forms cannot be used to insure the loss of business income. - Answer-
a. Specialized coverage forms exist for insuring buildings under construction, condominium association
buildings, and the property of condominium commercial unit owners.
,A commercial package policy (CPP) component that covers buildings and business personal property is
referred to as a:
a. Building and personal Property Coverage Form (BPP) endorsement.
b. Commercial general policy.
c. Building and contents form.
d. Commercial property coverage part. - Answer-d. Commercial property coverage part.
Which one of the following is a required component of the commercial property coverage part that
specifies the perils covered?
a. perils specified form
b. commercial property coverage form
c. causes of loss form
d. commercial property conditions - Answer-c. causes of loss form
Generally, more than one causes of loss form is used in a commercial property coverage part for which
one of the following reasons?
a. the underwriter is reluctant to provide the broader coverages for certain types of property.
b. business personal property, which is more subject to loss, is always insured on a more restricted basis
than are buildings.
c. using multiple causes of loss forms in a single policy is standard industry practice.
d. most insureds would like to cover their personal effects for loss b theft. - Answer-a. the underwriter is
reluctant to provide the broader coverages for certain types of property.
Which one of the following best describes a package modification factor?
a. a factor that is applied to the regular policy premiums for certain coverage parts of a CPP, to account
for territorial differences
b. the price per exposure unit for insurance coverage
c. any condition or situation that presents a possibility of loss, regardless of whether loss actually occurs
,d. a factor that is applied to the regular policy premiums for certain coverage parts of a CPP, resulting in
premium discounts for those coverage parts - Answer-d. a factor that is applied to the regular policy
premiums for certain coverage parts of a CPP, resulting in premium discounts for those coverage parts
Which one of the following contains an insuring agreement, delineation of the property covered and not
covered, and additional coverages and coverage extensions?
a. commercial property declarations
b. causes of loss forms
c. supplemental declarations forms
d. commercial property coverage forms - Answer-d. commercial property coverage forms
Which one of the following is the correct term for documents that are used to tailor commercial
property coverage to meet the specialized needs of particular insureds or eliminate exposures that
underwriters are not willing to insure?
a. optional exclusion forms
b. commercial property conditions
c. supplemental declarations
d. endorsements - Answer-d. endorsements
If an insured fast food franchise cannot list all of its locations on the commercial property declarations
page, which one of the following options would be most appropriate?
a. cover all remaining locations not listed on the first declarations page under a second insurance policy.
b. attach an additional commercial property coverage form to the policy.
c. add supplemental declarations on a separate page.
d. add a notation on the declarations page that states "plus all other locations owned by the named
insured." - Answer-c. add supplemental declarations on a separate page.
Which one of the following best describes the components of a coverage part for an ISO Commercial
Package Policy (CPP)?
, a. one or more coverage forms, applicable conditions, and restatement of the common policy exclusions
b. declarations page, restatement of the common policy exclusions, and the duties in the event of a loss
c. one or more coverage forms, applicable endorsements, and the duties in the event of a loss
d. declarations page, one or more coverage forms, and applicable endorsements - Answer-d.
declarations page, one or more coverage forms, and applicable endorsements
Which one of the following statements is correct with respect to Property Not Covered under the
Building and Personal Property Coverage Form (BPP)?
a. Almost all of the items listed in the Property Not Covered section are considered to be uninsurable.
b. Only contraband or property in the course of illegal transportation or trade is totally uninsurable by
endorsement or in other policies.
c. By endorsement, insurance can be made available for any of the items listed in the Property Not
Covered section.
d. ISO manual rules prohibit removing the exclusion of many of the items specified under Property Not
Covered. - Answer-b. Only contraband or property in the course of illegal transportation or trade is
totally uninsurable by endorsement or in other policies.
"Merchandise held in storage or for sale, raw materials and in-process or finished goods, including
supplies used in their packing or shipping" is the Building and Personal Property Coverage Form's (BPP)
definition for which of the following?
a. Business personal property
b. Inventory
c. Stock
d. Contents - Answer-c. Stock
Which one of the following is covered under the Building and Personal Property Coverage Form (BPP) as
business personal property?
a. Completed additions to a building
b. Building contents such as furniture
Which one of the following statements is correct?
a. They apply to all coverage forms included in a commercial property coverage part, unless a coverage
form contains a condition to the contrary.
b. They are an optional component of the commercial property coverage part, used at the underwriter's
discretion.
c. They are printed in bold type on the commercial property declarations page.
d. They provide definitions for words and phrases used in the policy to which they are attached. -
Answer-a. They apply to all coverage forms included in a commercial property coverage part, unless a
coverage form contains a condition to the contrary.
Which one of the following is an assumption required by the argument above?
a. Specialized coverage forms exist for insuring buildings under construction, condominium association
buildings, and the property of condominium commercial unit owners.
b. A commercial property coverage part cannot include more than one commercial property coverage
form.
c. Commercial Property Conditions specify the causes of loss for which the described property is
covered.
d. Commercial property coverage forms cannot be used to insure the loss of business income. - Answer-
a. Specialized coverage forms exist for insuring buildings under construction, condominium association
buildings, and the property of condominium commercial unit owners.
,A commercial package policy (CPP) component that covers buildings and business personal property is
referred to as a:
a. Building and personal Property Coverage Form (BPP) endorsement.
b. Commercial general policy.
c. Building and contents form.
d. Commercial property coverage part. - Answer-d. Commercial property coverage part.
Which one of the following is a required component of the commercial property coverage part that
specifies the perils covered?
a. perils specified form
b. commercial property coverage form
c. causes of loss form
d. commercial property conditions - Answer-c. causes of loss form
Generally, more than one causes of loss form is used in a commercial property coverage part for which
one of the following reasons?
a. the underwriter is reluctant to provide the broader coverages for certain types of property.
b. business personal property, which is more subject to loss, is always insured on a more restricted basis
than are buildings.
c. using multiple causes of loss forms in a single policy is standard industry practice.
d. most insureds would like to cover their personal effects for loss b theft. - Answer-a. the underwriter is
reluctant to provide the broader coverages for certain types of property.
Which one of the following best describes a package modification factor?
a. a factor that is applied to the regular policy premiums for certain coverage parts of a CPP, to account
for territorial differences
b. the price per exposure unit for insurance coverage
c. any condition or situation that presents a possibility of loss, regardless of whether loss actually occurs
,d. a factor that is applied to the regular policy premiums for certain coverage parts of a CPP, resulting in
premium discounts for those coverage parts - Answer-d. a factor that is applied to the regular policy
premiums for certain coverage parts of a CPP, resulting in premium discounts for those coverage parts
Which one of the following contains an insuring agreement, delineation of the property covered and not
covered, and additional coverages and coverage extensions?
a. commercial property declarations
b. causes of loss forms
c. supplemental declarations forms
d. commercial property coverage forms - Answer-d. commercial property coverage forms
Which one of the following is the correct term for documents that are used to tailor commercial
property coverage to meet the specialized needs of particular insureds or eliminate exposures that
underwriters are not willing to insure?
a. optional exclusion forms
b. commercial property conditions
c. supplemental declarations
d. endorsements - Answer-d. endorsements
If an insured fast food franchise cannot list all of its locations on the commercial property declarations
page, which one of the following options would be most appropriate?
a. cover all remaining locations not listed on the first declarations page under a second insurance policy.
b. attach an additional commercial property coverage form to the policy.
c. add supplemental declarations on a separate page.
d. add a notation on the declarations page that states "plus all other locations owned by the named
insured." - Answer-c. add supplemental declarations on a separate page.
Which one of the following best describes the components of a coverage part for an ISO Commercial
Package Policy (CPP)?
, a. one or more coverage forms, applicable conditions, and restatement of the common policy exclusions
b. declarations page, restatement of the common policy exclusions, and the duties in the event of a loss
c. one or more coverage forms, applicable endorsements, and the duties in the event of a loss
d. declarations page, one or more coverage forms, and applicable endorsements - Answer-d.
declarations page, one or more coverage forms, and applicable endorsements
Which one of the following statements is correct with respect to Property Not Covered under the
Building and Personal Property Coverage Form (BPP)?
a. Almost all of the items listed in the Property Not Covered section are considered to be uninsurable.
b. Only contraband or property in the course of illegal transportation or trade is totally uninsurable by
endorsement or in other policies.
c. By endorsement, insurance can be made available for any of the items listed in the Property Not
Covered section.
d. ISO manual rules prohibit removing the exclusion of many of the items specified under Property Not
Covered. - Answer-b. Only contraband or property in the course of illegal transportation or trade is
totally uninsurable by endorsement or in other policies.
"Merchandise held in storage or for sale, raw materials and in-process or finished goods, including
supplies used in their packing or shipping" is the Building and Personal Property Coverage Form's (BPP)
definition for which of the following?
a. Business personal property
b. Inventory
c. Stock
d. Contents - Answer-c. Stock
Which one of the following is covered under the Building and Personal Property Coverage Form (BPP) as
business personal property?
a. Completed additions to a building
b. Building contents such as furniture
