AINS 23 PRACTICE FINAL EXAM WITH
CORRECT ANSWERS 2025
Which one of the following lists the covered causes of loss (basic, broad, or
special); the deductible amount; and any optional coverages?
a. Commercial property conditions
b. Commercial property declarations
c. Causes of loss forms
d.Commercial property coverage forms ( correct answers ) b.
Commercial property declarations
Which one of the following is covered under the Building and Personal
Property Coverage form (BPP) as business personal property?
e. Completed additions to a building
f. Permanently installed machinery and equipment
g. Building contents such as furniture
h.Fixtures, including outdoor fixtures ( correct answers )c.
Building contents such as furniture
Under which one of the following provisions of the Building and Personal
Property Coverage form (BPP) is the maximum payment $10,000 or 5%
of the building limit, whichever is less?
i. Outdoor property coverage extension
j. Pollutant cleanup and removal additional coverage
k. Debris removal additional coverage
l.Increased cost of construction additional coverage
( correct answers ) d. Increased cost of
construction additional coverage
Which one of the following perils would be covered under the
commercial property policy broad from but not covered under the basic
form?
m.Damage due to weight of snow
n. Damage due to vandalism
o. Damage due to vehicles
p. Damage due to explosion ( correct answers ) a. Damage due to
weight of snow
Which one of the following is one of the covered causes of loss in the
commercial property policy Causes of Loss - Basic form?
q. Vandalism
r. Water damage
s. Weight of ice
t. Falling objects ( correct answers ) a. Vandalism
,The Causes of Loss - Special form is a commercial property form that covers
causes of loss that aren't specifically excluded. One reason to purchase this
form is:
a. It shifts the burden of proof to the insurer to prove a loss is excluded.
b. It is less expensive than the other policy causes of loss forms.
c. It has fewer exclusions and limitations than the other causes of loss forms.
d. It lists fat more covered perils than the other commercial forms. ( correct
answers )
e. It shifts the burden of proof to the insurer to prove a loss is excluded.
Which one of the following statements is correct with respect to the
Building and Personal Property Coverage Form (BPP) deductible?
f. The insurer is not obligated to pay anything to the insured unless
the loss exceeds
the deductible.
b.If an occurrence involves a loss that affects more than one
category of covered property and a separate limit of insurance applies
to each category, losses to all categories are totaled and the deductible
applied to that total amount.
c.If the coinsurance condition or the agreed value optional coverage
applies, the amount of the loss is first reduced by the deductible
before applying any penalty imposed by those provisions.
d. Under the ISO commercial lines manual rules, the standard
deductible must be at
least $2,500. ( correct answers ) a. The insurer is not obligated to pay
anything to the insured unless the loss exceeds the deductible.
Which one of the following statements is correct with respect to the
mortgageholder condition of the Building and Personal Property Coverage
form (BPP)?
e. A loss payment check or draft is usually made payable to the insured
who is then
responsible for reimbursing the mortgageholder.
b.A mortgageholder is prohibited from paying any premium due,
submitting a proof of loss, or notifying the insurer of any change in
ownership or occupancy.
c. If the insurer cancels or does not renew the policy it need not notify the
mortgageholder.
d.The insurer is sometimes obligated to make a loss payment to the
mortgageholder even though it has denied coverage, for example, to an
insured who has committed arson. ( correct answers ) d. The insurer is
sometimes obligated to make a loss payment to the mortgageholder even
though it has denied coverage, for example, to an insured who has
committed arson.
Under which one of the following provisions of the Building and Personal
Property Coverage form (BPP) must the insurer be notified within 180 days
after the occurrence of loss that a claim will be made under the terms of the
optional coverage in order for that optional coverage to pay the maximum
benefit available?
e. Agreed value
f. Inflation guard
g. Replacement cost
h.Extension of replacement cost to personal property of others
( correct answers ) c. Replacement
, Which one of the following statements is correct with respect to the
Insurance Under Two or More Coverages condition of the Commercial
Property Conditions Form?
a. It states that the total payment under all applicable coverage parts is
limited to the
actual amount of the loss.
b.It states that duplication, or "stacking," of the all applicable limits is
allowed in the case of a loss.
c. It explains how to apportion the loss among multiple policies for the
purpose of
developing rates.
d.It is necessary because some property might be covered under two or
more commercial package policies. ( correct answers ) a. It states that
the total payment under all applicable coverage parts is limited to the
actual amount of the loss.
According to the Common Policy Conditions used within the ISO Commercial
Package Policy, if a cancellation results in a return premium, the refund
would be sent to:
e. The producer shown on the declarations page.
f. The first named insured.
g. The person whose countersignature appears on the declarations page.
h.All named insureds, regardless of how many there are.
( correct answers ) b. The first named
insured.
Which one of the following statements is correct regarding the Spoilage
Coverage endorsement to the Building and Personal Property Coverage
form?
i. The coverage is subject to coinsurance.
j. The coverage is provided under a blanket limit.
k.For coverage to apply to damage resulting from a power outage, the
power outage must be caused by the insured.
l. It covers damage to perishable stock resulting from on-premises
breakdown, among
other causes. ( correct answers ) d. It covers damage to perishable stock
resulting from on-premises breakdown, among other causes.
Which one of the following statements is correct regarding the Additional
Coverage Property endorsement to the Building and Personal Property
Coverage form, also referred to as the BPP?
m.The endorsement provides coverage for the increased cost to
repair or rebuild property resulting from the enforcement of a building,
zoning, or land use law.
n. Almost all types of property that are excluded in the BPP can be
insured.
o.The current edition of the endorsement provides a limited list of the
types of property that can be added under the endorsement.
p. For the most part, requests to add excluded items pose underwriting
challenges for
insurers. ( correct answers ) b. Almost all types of property that are
excluded in the BPP can be insured.
The type of activities conducted inside a building, some of which are riskier
than others, is referred to as the:
CORRECT ANSWERS 2025
Which one of the following lists the covered causes of loss (basic, broad, or
special); the deductible amount; and any optional coverages?
a. Commercial property conditions
b. Commercial property declarations
c. Causes of loss forms
d.Commercial property coverage forms ( correct answers ) b.
Commercial property declarations
Which one of the following is covered under the Building and Personal
Property Coverage form (BPP) as business personal property?
e. Completed additions to a building
f. Permanently installed machinery and equipment
g. Building contents such as furniture
h.Fixtures, including outdoor fixtures ( correct answers )c.
Building contents such as furniture
Under which one of the following provisions of the Building and Personal
Property Coverage form (BPP) is the maximum payment $10,000 or 5%
of the building limit, whichever is less?
i. Outdoor property coverage extension
j. Pollutant cleanup and removal additional coverage
k. Debris removal additional coverage
l.Increased cost of construction additional coverage
( correct answers ) d. Increased cost of
construction additional coverage
Which one of the following perils would be covered under the
commercial property policy broad from but not covered under the basic
form?
m.Damage due to weight of snow
n. Damage due to vandalism
o. Damage due to vehicles
p. Damage due to explosion ( correct answers ) a. Damage due to
weight of snow
Which one of the following is one of the covered causes of loss in the
commercial property policy Causes of Loss - Basic form?
q. Vandalism
r. Water damage
s. Weight of ice
t. Falling objects ( correct answers ) a. Vandalism
,The Causes of Loss - Special form is a commercial property form that covers
causes of loss that aren't specifically excluded. One reason to purchase this
form is:
a. It shifts the burden of proof to the insurer to prove a loss is excluded.
b. It is less expensive than the other policy causes of loss forms.
c. It has fewer exclusions and limitations than the other causes of loss forms.
d. It lists fat more covered perils than the other commercial forms. ( correct
answers )
e. It shifts the burden of proof to the insurer to prove a loss is excluded.
Which one of the following statements is correct with respect to the
Building and Personal Property Coverage Form (BPP) deductible?
f. The insurer is not obligated to pay anything to the insured unless
the loss exceeds
the deductible.
b.If an occurrence involves a loss that affects more than one
category of covered property and a separate limit of insurance applies
to each category, losses to all categories are totaled and the deductible
applied to that total amount.
c.If the coinsurance condition or the agreed value optional coverage
applies, the amount of the loss is first reduced by the deductible
before applying any penalty imposed by those provisions.
d. Under the ISO commercial lines manual rules, the standard
deductible must be at
least $2,500. ( correct answers ) a. The insurer is not obligated to pay
anything to the insured unless the loss exceeds the deductible.
Which one of the following statements is correct with respect to the
mortgageholder condition of the Building and Personal Property Coverage
form (BPP)?
e. A loss payment check or draft is usually made payable to the insured
who is then
responsible for reimbursing the mortgageholder.
b.A mortgageholder is prohibited from paying any premium due,
submitting a proof of loss, or notifying the insurer of any change in
ownership or occupancy.
c. If the insurer cancels or does not renew the policy it need not notify the
mortgageholder.
d.The insurer is sometimes obligated to make a loss payment to the
mortgageholder even though it has denied coverage, for example, to an
insured who has committed arson. ( correct answers ) d. The insurer is
sometimes obligated to make a loss payment to the mortgageholder even
though it has denied coverage, for example, to an insured who has
committed arson.
Under which one of the following provisions of the Building and Personal
Property Coverage form (BPP) must the insurer be notified within 180 days
after the occurrence of loss that a claim will be made under the terms of the
optional coverage in order for that optional coverage to pay the maximum
benefit available?
e. Agreed value
f. Inflation guard
g. Replacement cost
h.Extension of replacement cost to personal property of others
( correct answers ) c. Replacement
, Which one of the following statements is correct with respect to the
Insurance Under Two or More Coverages condition of the Commercial
Property Conditions Form?
a. It states that the total payment under all applicable coverage parts is
limited to the
actual amount of the loss.
b.It states that duplication, or "stacking," of the all applicable limits is
allowed in the case of a loss.
c. It explains how to apportion the loss among multiple policies for the
purpose of
developing rates.
d.It is necessary because some property might be covered under two or
more commercial package policies. ( correct answers ) a. It states that
the total payment under all applicable coverage parts is limited to the
actual amount of the loss.
According to the Common Policy Conditions used within the ISO Commercial
Package Policy, if a cancellation results in a return premium, the refund
would be sent to:
e. The producer shown on the declarations page.
f. The first named insured.
g. The person whose countersignature appears on the declarations page.
h.All named insureds, regardless of how many there are.
( correct answers ) b. The first named
insured.
Which one of the following statements is correct regarding the Spoilage
Coverage endorsement to the Building and Personal Property Coverage
form?
i. The coverage is subject to coinsurance.
j. The coverage is provided under a blanket limit.
k.For coverage to apply to damage resulting from a power outage, the
power outage must be caused by the insured.
l. It covers damage to perishable stock resulting from on-premises
breakdown, among
other causes. ( correct answers ) d. It covers damage to perishable stock
resulting from on-premises breakdown, among other causes.
Which one of the following statements is correct regarding the Additional
Coverage Property endorsement to the Building and Personal Property
Coverage form, also referred to as the BPP?
m.The endorsement provides coverage for the increased cost to
repair or rebuild property resulting from the enforcement of a building,
zoning, or land use law.
n. Almost all types of property that are excluded in the BPP can be
insured.
o.The current edition of the endorsement provides a limited list of the
types of property that can be added under the endorsement.
p. For the most part, requests to add excluded items pose underwriting
challenges for
insurers. ( correct answers ) b. Almost all types of property that are
excluded in the BPP can be insured.
The type of activities conducted inside a building, some of which are riskier
than others, is referred to as the:
