AINS 23 - Segment A
Which one of the following statements is correct with respect to the Building and Personal Property
Coverage Form (BPP)?
Select one:
A. No payments under coverage extensions are made if the limit of insurance in the declarations is paid
in full.
B. Due to coverage extensions, it is possible for the total payment for one loss to exceed the policy limit.
C. The deductible is subtracted from the policy limit.
D. The policy limit is the maximum the insurer will pay over any one year. - Answer-B. Due to coverage
extensions, it is possible for the total payment for one loss to exceed the policy limit.
Which one of the following lists the covered causes of loss (basic, broad, or special); the deductible
amount; and any optional coverages?
Select one:
A. Causes of loss forms
B. Commercial property conditions
C. Commercial property coverage forms
D. Commercial property declarations - Answer-D. Commercial property declarations
,Which one of the following is a required component of the commercial property coverage part that
specifies the perils covered?
Select one:
A. Commercial property coverage form
B. Causes of loss form
C. Perils specified form
D. Commercial Property Conditions - Answer-B. Causes of loss form
Which one of the following best describes the components of a coverage part for an ISO Commercial
Package Policy (CPP)?
Select one:
A. One or more coverage forms, applicable endorsements, and the duties in the event of a loss
B. One or more coverage forms, applicable conditions, and restatement of the common policy
exclusions
C. Declarations page, one or more coverage forms, and applicable endorsements
D. Declarations page, restatement of the common policy exclusions, and the duties in the event of a loss
- Answer-C. Declarations page, one or more coverage forms, and applicable endorsements
A commercial package policy (CPP) component that covers buildings and business personal property is
referred to as a
Select one:
A. Commercial property coverage part.
B. Building and contents form.
,C. Building and Personal Property Coverage Form (BPP) endorsement.
D. Commercial general policy. - Answer-A. Commercial property coverage part.
Which one of the following contains an insuring agreement, delineation of the property covered and not
covered, and additional coverages and coverage extensions?
Select one:
A. Supplemental declarations forms
B. Causes of loss forms
C. Commercial property declarations
D. Commercial property coverage forms - Answer-D. Commercial property coverage forms
Which one of the following best describes a package modification factor?
Select one:
A. Any condition or situation that presents a possibility of loss, regardless of whether loss actually occurs
B. The price per exposure unit for insurance coverage
C. 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
D. A factor that is applied to the regular policy premiums for certain coverage parts of a CPP, to account
for territorial differences - Answer-C. 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
A Commercial Package Policy (CPP) premium may be modified by a package modification factor. This
factor
Select one:
, A. Is the same for insurers in all states.
B. Is a discount justified by the greater efficiency in providing a package policy.
C. Is based on the amount of coverage.
D. Provides a charge for coverage extensions. - Answer-B. Is a discount justified by the greater efficiency
in providing a package policy.
Generally, more than one causes of loss form is used in a commercial property coverage part for which
one of the following reasons?
Select one:
A. Business personal property, which is more subject to loss, is always insured on a more restricted basis
than are buildings.
B. The underwriter is reluctant to provide the broader coverages for certain types of property.
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 by theft. - Answer-B. The underwriter
is reluctant to provide the broader coverages for certain types of property.
Which one of the following statements about commercial property coverage forms is correct?
Select one:
A. A commercial property coverage part cannot include more than one commercial property coverage
form.
B. Commercial Property Conditions specify the causes of loss for which the described property is
covered.
C. Specialized coverage forms exist for insuring buildings under construction, condominium association
buildings, and the property of condominium commercial unit owners.
D. Commercial property coverage forms cannot be used to insure the loss of business income. - Answer-
C. Specialized coverage forms exist for insuring buildings under construction, condominium association
buildings, and the property of condominium commercial unit owners.
Which one of the following statements is correct with respect to the Building and Personal Property
Coverage Form (BPP)?
Select one:
A. No payments under coverage extensions are made if the limit of insurance in the declarations is paid
in full.
B. Due to coverage extensions, it is possible for the total payment for one loss to exceed the policy limit.
C. The deductible is subtracted from the policy limit.
D. The policy limit is the maximum the insurer will pay over any one year. - Answer-B. Due to coverage
extensions, it is possible for the total payment for one loss to exceed the policy limit.
Which one of the following lists the covered causes of loss (basic, broad, or special); the deductible
amount; and any optional coverages?
Select one:
A. Causes of loss forms
B. Commercial property conditions
C. Commercial property coverage forms
D. Commercial property declarations - Answer-D. Commercial property declarations
,Which one of the following is a required component of the commercial property coverage part that
specifies the perils covered?
Select one:
A. Commercial property coverage form
B. Causes of loss form
C. Perils specified form
D. Commercial Property Conditions - Answer-B. Causes of loss form
Which one of the following best describes the components of a coverage part for an ISO Commercial
Package Policy (CPP)?
Select one:
A. One or more coverage forms, applicable endorsements, and the duties in the event of a loss
B. One or more coverage forms, applicable conditions, and restatement of the common policy
exclusions
C. Declarations page, one or more coverage forms, and applicable endorsements
D. Declarations page, restatement of the common policy exclusions, and the duties in the event of a loss
- Answer-C. Declarations page, one or more coverage forms, and applicable endorsements
A commercial package policy (CPP) component that covers buildings and business personal property is
referred to as a
Select one:
A. Commercial property coverage part.
B. Building and contents form.
,C. Building and Personal Property Coverage Form (BPP) endorsement.
D. Commercial general policy. - Answer-A. Commercial property coverage part.
Which one of the following contains an insuring agreement, delineation of the property covered and not
covered, and additional coverages and coverage extensions?
Select one:
A. Supplemental declarations forms
B. Causes of loss forms
C. Commercial property declarations
D. Commercial property coverage forms - Answer-D. Commercial property coverage forms
Which one of the following best describes a package modification factor?
Select one:
A. Any condition or situation that presents a possibility of loss, regardless of whether loss actually occurs
B. The price per exposure unit for insurance coverage
C. 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
D. A factor that is applied to the regular policy premiums for certain coverage parts of a CPP, to account
for territorial differences - Answer-C. 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
A Commercial Package Policy (CPP) premium may be modified by a package modification factor. This
factor
Select one:
, A. Is the same for insurers in all states.
B. Is a discount justified by the greater efficiency in providing a package policy.
C. Is based on the amount of coverage.
D. Provides a charge for coverage extensions. - Answer-B. Is a discount justified by the greater efficiency
in providing a package policy.
Generally, more than one causes of loss form is used in a commercial property coverage part for which
one of the following reasons?
Select one:
A. Business personal property, which is more subject to loss, is always insured on a more restricted basis
than are buildings.
B. The underwriter is reluctant to provide the broader coverages for certain types of property.
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 by theft. - Answer-B. The underwriter
is reluctant to provide the broader coverages for certain types of property.
Which one of the following statements about commercial property coverage forms is correct?
Select one:
A. A commercial property coverage part cannot include more than one commercial property coverage
form.
B. Commercial Property Conditions specify the causes of loss for which the described property is
covered.
C. Specialized coverage forms exist for insuring buildings under construction, condominium association
buildings, and the property of condominium commercial unit owners.
D. Commercial property coverage forms cannot be used to insure the loss of business income. - Answer-
C. Specialized coverage forms exist for insuring buildings under construction, condominium association
buildings, and the property of condominium commercial unit owners.
