CISR Insuring Commercial Property || All Solutions are Accurate.
Select the answer that most closely describes Actual Cash Value (ACV). correct answers A
method of establishing the value of property wherein depreciation and obsolescence are deducted
from the value of the property.
Select the answer that most closely describes Functional Replacement Cost. correct answers A
provision which changes the policy valuation so as to provide for replacement with a different
structure which performs the same service or function, but is less costly.
Which of the following statements best defines direct loss? correct answers Losses incurred
when there is tangible visible damage to the insured's property.
Which one of the following does not have an insurable interest in a property? correct answers
Neighboring businesses
Select the answer that most closely describes Replacement Cost. correct answers Insurance
issued in an amount to cover the property described for a limit that will be adequate to replace
the structure at the cost of today's labor and materials.
Which one of these statements best describes Coinsurance? correct answers A contractual
promise to carry an amount of insurance equal to, or greater than, a fixed percent of the current
value of the property. Failure to comply results in a penalty.
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
,What amount of insurance is required to comply with the coinsurance provision? correct answers
$240,000
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
How much will the policy pay? correct answers $37,500
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
What amount of insurance is required to comply with the coinsurance provision? correct
answers $400,000
What amount of insurance is required to comply with the coinsurance provision, and how much
will the policy pay?
Building Value (at time of loss) $100,000 Policy Limit $80,000
80% Coinsurance Clause Loss amount $15,000 correct answers $80,000; $15,000
Using the values listed below, answer the coinsurance problem. Ignore deductibles.
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
, Did the insured comply with the coinsurance provision? correct answers No
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
Did the insured comply with the coinsurance provision? correct answers Yes
Which of the following statements best defines and summarizes all the features of Agreed Value?
correct answers An option in the Commercial Property policy which suspends the coinsurance
clause. The insured is required to file a statement of values with the insurance company; the
company must agree with the values filed. The policy is written at the agreed value, and then the
coinsurance clause is suspended for one year only, not to extend beyond the policy expiration
date.
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
How much will the policy pay? correct answers $37,500
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
Select the answer that most closely describes Actual Cash Value (ACV). correct answers A
method of establishing the value of property wherein depreciation and obsolescence are deducted
from the value of the property.
Select the answer that most closely describes Functional Replacement Cost. correct answers A
provision which changes the policy valuation so as to provide for replacement with a different
structure which performs the same service or function, but is less costly.
Which of the following statements best defines direct loss? correct answers Losses incurred
when there is tangible visible damage to the insured's property.
Which one of the following does not have an insurable interest in a property? correct answers
Neighboring businesses
Select the answer that most closely describes Replacement Cost. correct answers Insurance
issued in an amount to cover the property described for a limit that will be adequate to replace
the structure at the cost of today's labor and materials.
Which one of these statements best describes Coinsurance? correct answers A contractual
promise to carry an amount of insurance equal to, or greater than, a fixed percent of the current
value of the property. Failure to comply results in a penalty.
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
,What amount of insurance is required to comply with the coinsurance provision? correct answers
$240,000
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
How much will the policy pay? correct answers $37,500
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
What amount of insurance is required to comply with the coinsurance provision? correct
answers $400,000
What amount of insurance is required to comply with the coinsurance provision, and how much
will the policy pay?
Building Value (at time of loss) $100,000 Policy Limit $80,000
80% Coinsurance Clause Loss amount $15,000 correct answers $80,000; $15,000
Using the values listed below, answer the coinsurance problem. Ignore deductibles.
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
, Did the insured comply with the coinsurance provision? correct answers No
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
Did the insured comply with the coinsurance provision? correct answers Yes
Which of the following statements best defines and summarizes all the features of Agreed Value?
correct answers An option in the Commercial Property policy which suspends the coinsurance
clause. The insured is required to file a statement of values with the insurance company; the
company must agree with the values filed. The policy is written at the agreed value, and then the
coinsurance clause is suspended for one year only, not to extend beyond the policy expiration
date.
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
How much will the policy pay? correct answers $37,500
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
