AINS 23: CH 1 Review Questions
Which one of the following is covered by the Causes of Loss—Special Form but not by the Causes of Loss
—Basic Form - Answer-Melting of ice, sleet, or snow on the building structure
Which one of the following best describes the components of a coverage part for an ISO Commercial
Package Policy (CPP)? - Answer-Declarations page, one or more coverage forms, and applicable
endorsements
The Causes of Loss—Special Form states that it covers "risks of direct physical loss." The loss or damage -
Answer-Must be accidental and unforeseen by the insured in order to be covered.
Jim's Barber Shop has a Building and Personal Property Coverage Form (BPP) with a $100,000 limit on
the building and a $1,000 deductible. The building suffers a $15,000 fire loss. Which one of the following
amounts will Jim's insurer pay? - Answer-C. $14,000
Paris Cuisine, a fine-dining restaurant, rents space in a commercial building, which is insured by its
owner. Paris Cuisine spends $50,000 on wallpaper, floor coverings, windows, and other improvements
that would remain in the building if Paris Cuisine were to move out. Paris Cuisine's interest in these
Which one of the following is covered by the Causes of Loss—Special Form but not by the Causes of Loss
—Basic Form - Answer-Melting of ice, sleet, or snow on the building structure
Which one of the following best describes the components of a coverage part for an ISO Commercial
Package Policy (CPP)? - Answer-Declarations page, one or more coverage forms, and applicable
endorsements
The Causes of Loss—Special Form states that it covers "risks of direct physical loss." The loss or damage -
Answer-Must be accidental and unforeseen by the insured in order to be covered.
Jim's Barber Shop has a Building and Personal Property Coverage Form (BPP) with a $100,000 limit on
the building and a $1,000 deductible. The building suffers a $15,000 fire loss. Which one of the following
amounts will Jim's insurer pay? - Answer-C. $14,000
Paris Cuisine, a fine-dining restaurant, rents space in a commercial building, which is insured by its
owner. Paris Cuisine spends $50,000 on wallpaper, floor coverings, windows, and other improvements
that would remain in the building if Paris Cuisine were to move out. Paris Cuisine's interest in these
