CIC COMMERCIAL PROPERTY EXAM
PREP QUESTIONS WITH VERIFIED
ANSWERS
Six Additional Coverages - Answer-1. Debris removal
2. preservation of property
3. increased cost of construction
4. fire department service charge
5. pollutant cleanup and removal
6. electronic data
7 coverage extensions - Answer-1. newly acquired or constructed property
2. personal effects and property of others
3. valuable papers and records
4. property off-premises
5. outdoor property
6. non-owned detached trailers
7. BPP temporarily stored in portable storage units
4 optional coverages - Answer-1. Agreed value
2. Replacement cost
3. inflation guard
4. extension of RC to pp of others
Endorsements used to modify coverage extensions (6) - Answer-1. newly acquired or
constructed property - increased limit
2. higher limits
3. specified bpp temporarily away from premises
4. additional covered property
5. radio or television antennas
6. trees, shrubs, plants
Explain replacement cost - Answer-- without deduction for depreciation
- claims are paid on acv until repairs or replacements is complete and then difference is
paid
- does not apply to pp of others, contents of residence or fine arts
Optional Coverage - RC PP OF OTHERS - Answer-- applies rc to property of others but
limited to the lessor of amount required by contract or RC
Loss Payment options (4) - Answer-1. Pay the value
2. Pay the cost to repair or replace
3. take the property at an agreed or appraised value
4. repair, rebuild or replace with like kind and quality
PREP QUESTIONS WITH VERIFIED
ANSWERS
Six Additional Coverages - Answer-1. Debris removal
2. preservation of property
3. increased cost of construction
4. fire department service charge
5. pollutant cleanup and removal
6. electronic data
7 coverage extensions - Answer-1. newly acquired or constructed property
2. personal effects and property of others
3. valuable papers and records
4. property off-premises
5. outdoor property
6. non-owned detached trailers
7. BPP temporarily stored in portable storage units
4 optional coverages - Answer-1. Agreed value
2. Replacement cost
3. inflation guard
4. extension of RC to pp of others
Endorsements used to modify coverage extensions (6) - Answer-1. newly acquired or
constructed property - increased limit
2. higher limits
3. specified bpp temporarily away from premises
4. additional covered property
5. radio or television antennas
6. trees, shrubs, plants
Explain replacement cost - Answer-- without deduction for depreciation
- claims are paid on acv until repairs or replacements is complete and then difference is
paid
- does not apply to pp of others, contents of residence or fine arts
Optional Coverage - RC PP OF OTHERS - Answer-- applies rc to property of others but
limited to the lessor of amount required by contract or RC
Loss Payment options (4) - Answer-1. Pay the value
2. Pay the cost to repair or replace
3. take the property at an agreed or appraised value
4. repair, rebuild or replace with like kind and quality
