CIC COMMERCIAL PROPERTY EXAM
GUIDE QUESTIONS AND ANSWERS
Endorsements that are available to change whether an item is considered building or
personal property - Answer-Additional Building Property-used to clarify certain grey area
items, permanently installed machinery and equipment, used to cover your BPP under
building instead of BPP i.e church organs, freezers. Additional Property not Covered-
used to add specific types of property to the list of property not covered.
Business Personal Property - Answer-Furniture and fixtures, machinery and equipment,
stock, all other personal property owned by you and used in your business, labor,
materials or services, furnished or arranged by you on personal property of others, your
use interest as tenant in improvements and betterments, leased personal property
which you have a contractural obligation.
Personal Property of others - Answer-In your care custody or control and located in or
on the building or structure described in the declaration's or in the open or in a vehicle
within 100 feet of the building or described premises.
Advantages and Disadvantages of writing a policy on a blanket bases vs.
scheduled/specific basis - Answer-Advantages-named insured can apply insurance
where needed when more than 1 property is covered on a blanket basis, handles
fluctuating values between locations, reporting forms easier to handle, named insured
may have 100% insurance to value at each location but only has to carry 90% to value
for all combined locations. Disadvantages- 90% or 100% coinsurance required, blanket
may not be possible because of underwriting restrictions or form restrictions, statement
of values must be obtained from named insured, rates for one year only, must have
same causes of loss for all covered property, must list all ownership interests with
multiple locations
Value Reporting - Answer-Provides means to accurately measure changing values of
personal property, insured must make accurate and timely required reports. If not
accurate the Did/Should formula will apply. Inventory Reported (DID)/ Actual Inventory
(SHOULD) X Loss = Recovery up to the provisional limit of insurance. If first report not
filed the policy will pay no more than 75%. If insured begins reporting but fails to file
subsequent reports, the policy will pay no more than the values show on the most
recent report.
Additional Coverages Provided in the Building and Personal Property Coverage Form -
Answer-1. Debris Removal 2. Preservation of Property 3. Fire Department Service
Charge 4. Pollutant Clean up and Removal 5. Increased Cost of Constructions 6.
Electronic Data
GUIDE QUESTIONS AND ANSWERS
Endorsements that are available to change whether an item is considered building or
personal property - Answer-Additional Building Property-used to clarify certain grey area
items, permanently installed machinery and equipment, used to cover your BPP under
building instead of BPP i.e church organs, freezers. Additional Property not Covered-
used to add specific types of property to the list of property not covered.
Business Personal Property - Answer-Furniture and fixtures, machinery and equipment,
stock, all other personal property owned by you and used in your business, labor,
materials or services, furnished or arranged by you on personal property of others, your
use interest as tenant in improvements and betterments, leased personal property
which you have a contractural obligation.
Personal Property of others - Answer-In your care custody or control and located in or
on the building or structure described in the declaration's or in the open or in a vehicle
within 100 feet of the building or described premises.
Advantages and Disadvantages of writing a policy on a blanket bases vs.
scheduled/specific basis - Answer-Advantages-named insured can apply insurance
where needed when more than 1 property is covered on a blanket basis, handles
fluctuating values between locations, reporting forms easier to handle, named insured
may have 100% insurance to value at each location but only has to carry 90% to value
for all combined locations. Disadvantages- 90% or 100% coinsurance required, blanket
may not be possible because of underwriting restrictions or form restrictions, statement
of values must be obtained from named insured, rates for one year only, must have
same causes of loss for all covered property, must list all ownership interests with
multiple locations
Value Reporting - Answer-Provides means to accurately measure changing values of
personal property, insured must make accurate and timely required reports. If not
accurate the Did/Should formula will apply. Inventory Reported (DID)/ Actual Inventory
(SHOULD) X Loss = Recovery up to the provisional limit of insurance. If first report not
filed the policy will pay no more than 75%. If insured begins reporting but fails to file
subsequent reports, the policy will pay no more than the values show on the most
recent report.
Additional Coverages Provided in the Building and Personal Property Coverage Form -
Answer-1. Debris Removal 2. Preservation of Property 3. Fire Department Service
Charge 4. Pollutant Clean up and Removal 5. Increased Cost of Constructions 6.
Electronic Data
