CIC COMMERCIAL PROPERTY EXAM
QUESTIONS AND ANSWERS
What is the limit for the newly acquired BLDS and BPP coverage extension - Answer-
$250000 for blds under construction at prem or acquired. $100000 BPP on or off
premises except fairs and exhibits. Expires after 30 days, policy expiration or limits
reported to carrier.
What is the limit for out door property coverage extension? - Answer-$1000 w/$250 per
tree or shrub. includes fences, antennas, satelit dishes. Cause of loss is FLARE Fire,
Lightening, Aircraft, Riot/Civil Commotion, Explosion.
What is the coverage limit for Non-Owned Trailer Extension? - Answer-$5000, not
owned at premises, used in business, contractual responsibility, not attached.
Explain the Loss Payment Options - Answer-Company has 30 days to give notice of
intension. Limited to financial interest. pays value, pays to repair or replace, take prop at
agreed or appraised value or repairs, or rebuild with like kind quality.
How does agreed value option affect the coinsurance provision? - Answer-Suspends,
and expires on anniversary date.
What is not eligible for Replacement Cost Option - Answer-PP of others, Contents of
residence, manuscripts, art & antiques, Stock (unless chosen on Dec.
What are commercial property loss exposures - Answer-Buildings, personal property of
owner, others and off premises, business income.
What are some causes of loss - Answer-Fire, accident, weather, crime and disaster.
What should be considered when determining coverage amounts - Answer-potential for
loss and probable maximum loss.
Coverage form includes loss payment at Actual Cash Value or ACV, what is ACV> -
Answer-The amount of loss minus depreciation. No set formula or definition for
depreciation.
What is included in building coverage - Answer-Attached to land, Property used to
maintain the building, cooking and ventilation, cooking, laundry equip, floor covering,
installed fixtures in and out (permanently in ground), repairs in progress, outdoor
property. completed additions,
QUESTIONS AND ANSWERS
What is the limit for the newly acquired BLDS and BPP coverage extension - Answer-
$250000 for blds under construction at prem or acquired. $100000 BPP on or off
premises except fairs and exhibits. Expires after 30 days, policy expiration or limits
reported to carrier.
What is the limit for out door property coverage extension? - Answer-$1000 w/$250 per
tree or shrub. includes fences, antennas, satelit dishes. Cause of loss is FLARE Fire,
Lightening, Aircraft, Riot/Civil Commotion, Explosion.
What is the coverage limit for Non-Owned Trailer Extension? - Answer-$5000, not
owned at premises, used in business, contractual responsibility, not attached.
Explain the Loss Payment Options - Answer-Company has 30 days to give notice of
intension. Limited to financial interest. pays value, pays to repair or replace, take prop at
agreed or appraised value or repairs, or rebuild with like kind quality.
How does agreed value option affect the coinsurance provision? - Answer-Suspends,
and expires on anniversary date.
What is not eligible for Replacement Cost Option - Answer-PP of others, Contents of
residence, manuscripts, art & antiques, Stock (unless chosen on Dec.
What are commercial property loss exposures - Answer-Buildings, personal property of
owner, others and off premises, business income.
What are some causes of loss - Answer-Fire, accident, weather, crime and disaster.
What should be considered when determining coverage amounts - Answer-potential for
loss and probable maximum loss.
Coverage form includes loss payment at Actual Cash Value or ACV, what is ACV> -
Answer-The amount of loss minus depreciation. No set formula or definition for
depreciation.
What is included in building coverage - Answer-Attached to land, Property used to
maintain the building, cooking and ventilation, cooking, laundry equip, floor covering,
installed fixtures in and out (permanently in ground), repairs in progress, outdoor
property. completed additions,
