CPCU 551 FULL EXAM 2025 QUESTIONS
AND VERIFIED ANSWERS GRADED A+
, Commercial Package Policy (CPP) 1-1 - ANSWERPolicy that covers two or more lines
of business by combining ISO's commercial lines coverage parts
Businessowners Policy (BOP) 1-2 - ANSWERA package policy that combines most of
the property and liability coverages needed by small and medium-sized businesses
Output Policy 1-3 - ANSWERA policy that combines, in one form and associated
endorsements, all or most of the commercial property coverages that the insured
organization needs, and uses a flexible rating plan
Commercial Property Conditions 1-4 - ANSWERA required component of the
commercial property coverage part that contains conditions applicable to all commercial
property coverage forms
Policy Condition 1-5 - ANSWERAny provision that qualifies an otherwise enforceable
promise made in the policy
Actual Cash Value (ACV) 1-6 - ANSWERCost to replace property with new property of
like kind and quality less depreciation
Replacement Cost 1-7 - ANSWERCost to repair or replace property using new
materials of like kind and quality with no deduction for depreciation
Fixture 2-1 - ANSWERAny personal property affixed to real property in such a way as to
become part of the real property
Trade Fixtures 2-2 - ANSWERFixtures and equipment that may be attached to a
building during a tenant's occupancy, with the intention that they be removed when the
tenant leaves
Improvements and Betterments 2-3 - ANSWERAlterations or additions made to the
building at the expense of the insured who does not own the building and who cannot
legally remove them
Commercial Bailment 2-4 - ANSWERThe temporary possession by one party (the
bailee) of personal property of another party (the bailor) for a specific purpose beneficial
to both parties
Agreed Value Optional Coverage 2-5 - ANSWEROptional coverage that suspends the
Coinsurance condition if the insured carries the amount of insurance agreed to by the
insurer and the insured
AND VERIFIED ANSWERS GRADED A+
, Commercial Package Policy (CPP) 1-1 - ANSWERPolicy that covers two or more lines
of business by combining ISO's commercial lines coverage parts
Businessowners Policy (BOP) 1-2 - ANSWERA package policy that combines most of
the property and liability coverages needed by small and medium-sized businesses
Output Policy 1-3 - ANSWERA policy that combines, in one form and associated
endorsements, all or most of the commercial property coverages that the insured
organization needs, and uses a flexible rating plan
Commercial Property Conditions 1-4 - ANSWERA required component of the
commercial property coverage part that contains conditions applicable to all commercial
property coverage forms
Policy Condition 1-5 - ANSWERAny provision that qualifies an otherwise enforceable
promise made in the policy
Actual Cash Value (ACV) 1-6 - ANSWERCost to replace property with new property of
like kind and quality less depreciation
Replacement Cost 1-7 - ANSWERCost to repair or replace property using new
materials of like kind and quality with no deduction for depreciation
Fixture 2-1 - ANSWERAny personal property affixed to real property in such a way as to
become part of the real property
Trade Fixtures 2-2 - ANSWERFixtures and equipment that may be attached to a
building during a tenant's occupancy, with the intention that they be removed when the
tenant leaves
Improvements and Betterments 2-3 - ANSWERAlterations or additions made to the
building at the expense of the insured who does not own the building and who cannot
legally remove them
Commercial Bailment 2-4 - ANSWERThe temporary possession by one party (the
bailee) of personal property of another party (the bailor) for a specific purpose beneficial
to both parties
Agreed Value Optional Coverage 2-5 - ANSWEROptional coverage that suspends the
Coinsurance condition if the insured carries the amount of insurance agreed to by the
insurer and the insured
