AINS 23
Which one of the following statements is correct with respect to the Commercial Property Conditions? -
Answer-A. They provide definitions for words and phrases used in the policy to which they are attached
B. They apply to all coverage forms included in a commercial property coverage part, unless a coverage
form contains a condition to the contrary.
C. They are printed in bold type on the commercial property declarations page
D. They are an optional component of the commercial property coverage part, used at the underwriter's
discretion
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? - Answer-A. Attach an additional
commercial property coverage form to the policy
B. Add a notation on the declarations page that states "Plus all other locations owned by the named
insured
C. Add supplemental declarations on a separate page.
D. Cover all remaining locations not listed on the first declarations page under a second insurance policy
A Commercial Package Policy (CPP) premium may be modified by a package modification factor. This
factor - Answer-A. Is based on the amount of coverage
B. Provides a charge for coverage extensions
C. Is the same for insurers in all states
, D. Is a discount justified by the greater efficiency in providing a package policy.
Package modification factors for the Commercial Package Policy (CPP) often - Answer-A. Specify the
endorsements that modify coverage parts in the policy
B. Specify that the policy can be changed only by a written endorsement
C. Provide a premium discount for the insured.
D. Provide a method for the insured to transfer rights and duties under the policy
Which one of the following statements is correct with respect to the Building and Personal Property
(BPP) Coverage Form? - Answer-A. The BPP must be written to provide coverage for all of the following:
buildings, business personal property, and personal property of others
B. The BPP covers business personal property and property of others up to a specified percentage of the
building coverage limit
C. The BPP provides coverage against both direct and indirect loss or damage caused by a covered cause
of loss
D. The BPP lists several types of classes of property that do not qualify as covered property.
Which one of the following statements is correct with respect to the business personal property
coverage provided by the Building and Personal Property Coverage Form (BPP)? - Answer-A. Leased
personal property for which the named insured has a contractual responsibility to procure coverage is
excluded from the BPP, but the coverage can be added by endorsement
B. The definition of business personal property limits the coverage to furniture, fixtures, machinery and
equipment owned by the insured and used in the insured's business
C. Except for limited off-premises coverage, coverage for business personal property applies only when
the property is located in or on the described building or in the open (or in a vehicle) within 100 feet of
the building or structure or within 100 feet of the premises, whichever is greater.
D. "Your business personal property" specifically excludes labor, materials, or services furnished by the
insured on the personal property of others
Which one of the following statements is correct with respect to the Commercial Property Conditions? -
Answer-A. They provide definitions for words and phrases used in the policy to which they are attached
B. They apply to all coverage forms included in a commercial property coverage part, unless a coverage
form contains a condition to the contrary.
C. They are printed in bold type on the commercial property declarations page
D. They are an optional component of the commercial property coverage part, used at the underwriter's
discretion
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? - Answer-A. Attach an additional
commercial property coverage form to the policy
B. Add a notation on the declarations page that states "Plus all other locations owned by the named
insured
C. Add supplemental declarations on a separate page.
D. Cover all remaining locations not listed on the first declarations page under a second insurance policy
A Commercial Package Policy (CPP) premium may be modified by a package modification factor. This
factor - Answer-A. Is based on the amount of coverage
B. Provides a charge for coverage extensions
C. Is the same for insurers in all states
, D. Is a discount justified by the greater efficiency in providing a package policy.
Package modification factors for the Commercial Package Policy (CPP) often - Answer-A. Specify the
endorsements that modify coverage parts in the policy
B. Specify that the policy can be changed only by a written endorsement
C. Provide a premium discount for the insured.
D. Provide a method for the insured to transfer rights and duties under the policy
Which one of the following statements is correct with respect to the Building and Personal Property
(BPP) Coverage Form? - Answer-A. The BPP must be written to provide coverage for all of the following:
buildings, business personal property, and personal property of others
B. The BPP covers business personal property and property of others up to a specified percentage of the
building coverage limit
C. The BPP provides coverage against both direct and indirect loss or damage caused by a covered cause
of loss
D. The BPP lists several types of classes of property that do not qualify as covered property.
Which one of the following statements is correct with respect to the business personal property
coverage provided by the Building and Personal Property Coverage Form (BPP)? - Answer-A. Leased
personal property for which the named insured has a contractual responsibility to procure coverage is
excluded from the BPP, but the coverage can be added by endorsement
B. The definition of business personal property limits the coverage to furniture, fixtures, machinery and
equipment owned by the insured and used in the insured's business
C. Except for limited off-premises coverage, coverage for business personal property applies only when
the property is located in or on the described building or in the open (or in a vehicle) within 100 feet of
the building or structure or within 100 feet of the premises, whichever is greater.
D. "Your business personal property" specifically excludes labor, materials, or services furnished by the
insured on the personal property of others
