CPCU 551, CHAPTER 2 EXAM
QUESTIONS WITH 100% CORRECT
DETAILED ANSWERS
, BPP form - ANSWERBuilding and Personal Property Coverage Form
BPP can cover any combination of _________, __________ and __________ -
ANSWERBuilding
Your Business Personal Property
Personal Property of Others
Real Property - ANSWERconsists of land, all structures permanently attached to the
land and whatever is growing on the land
Personal Property - ANSWERall tangible property other than real property
Fixture - ANSWERany personal property affixed to real property in such a way as to
become part of the real property
The BPP form includes 7 specific categories of Business Personal Property -
ANSWERFurniture and fixtures
Machinery and equipment
Stock
All other personal property owned by you and used in your business
Labor, materials and services arranged by you
Your interest as a tenant in improvements/betterments
Leased personal property you must ensure by contract
trade fixtures - 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 - ANSWERAlterations or additions made to the building
at the expense of an insured who does not own the building and who cannot legally
remove them
Commercial bailment - ANSWERThe temporary possession by one party (the bailee) or
personal property of another party (the bailor) for a specific purpose beneficial to both
parties
Agreed value optional coverage - ANSWEROptional coverage that suspends the
coinsurance condition if the insured carries the amount of insurance agreed to by the
insurer and the insured
Inflation guard optional coverage - ANSWERCoverage for the effects of inflation that
automatically increases the limit of insurance by the percentage of annual increase
shown in the declarations
QUESTIONS WITH 100% CORRECT
DETAILED ANSWERS
, BPP form - ANSWERBuilding and Personal Property Coverage Form
BPP can cover any combination of _________, __________ and __________ -
ANSWERBuilding
Your Business Personal Property
Personal Property of Others
Real Property - ANSWERconsists of land, all structures permanently attached to the
land and whatever is growing on the land
Personal Property - ANSWERall tangible property other than real property
Fixture - ANSWERany personal property affixed to real property in such a way as to
become part of the real property
The BPP form includes 7 specific categories of Business Personal Property -
ANSWERFurniture and fixtures
Machinery and equipment
Stock
All other personal property owned by you and used in your business
Labor, materials and services arranged by you
Your interest as a tenant in improvements/betterments
Leased personal property you must ensure by contract
trade fixtures - 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 - ANSWERAlterations or additions made to the building
at the expense of an insured who does not own the building and who cannot legally
remove them
Commercial bailment - ANSWERThe temporary possession by one party (the bailee) or
personal property of another party (the bailor) for a specific purpose beneficial to both
parties
Agreed value optional coverage - ANSWEROptional coverage that suspends the
coinsurance condition if the insured carries the amount of insurance agreed to by the
insurer and the insured
Inflation guard optional coverage - ANSWERCoverage for the effects of inflation that
automatically increases the limit of insurance by the percentage of annual increase
shown in the declarations
