Iowa Commercial Lines Exam with
Complete Solutions
Under the common policy conditions of the commercial package policy, who is the party
responsible for the payment of premiums? - ANSWER-First Named Insured
Notice of cancellation under the commercial package policy for nonpayment of premium
is... - ANSWER-10 days
Policy conditions may be changed only by - ANSWER-An endorsement issued by the
insurer
The insurer is granted the right to audit books and records of the insured relating to the
policy for a period of up to how many years after the end of the period? - ANSWER-3
years
The insurer is granted the right to make inspections, surveys, reports, and
recommendations - ANSWER-Only with the written consent of the insured
In the event of the insured's death, rights, and duties are automatically transferred to the
insured's... - ANSWER-Legal representative
Under the commercial property conditions form, the insured is permitted to brig suit
within how many years? - ANSWER-24 months
The policy territory of the commercial property form EXCLUDES... - ANSWER-Mexico
The Basic Cause of Loss Form may EXCLUDE which of the following by endorsement?
- ANSWER-Sprinkler leakage
The Basic Cause of Loss Form covers... - ANSWER-Sonic boom
The Broad cause of loss form covers collapse due to... - ANSWER-Falling objects
Coverage under the Special cause of loss form is on the basis of... - ANSWER-Open
perils
The Earthquake Form covers earthquake and volcanic eruption, explosion, or effusion
during the policy period or within how many hours after policy expiration? - ANSWER-
168 hours
,The earthquake cause of loss form covers... - ANSWER-Volcanic eruption
Which of the following is NOT an optional coverage endorsement to the Building and
Personal Property Form? - ANSWER-Builders Risk Coverage Form
The form to be used for fluctuating business inventories is the... - ANSWER-Value
Reporting Form
The building and Personal Property coverage from would NOT include... - ANSWER-
Bridges, walks, patios, and other paved surfaces
All of the coverage extension limits and the Fire Department Service Charge limits are...
- ANSWER-Additional amounts of insurance
The optional coverage in the Buildings and Personal Property Coverage Form which
suspends the coinsurance provisions, guaranteeing that the insured will not suffer a
coinsurance penalty is.. - ANSWER-Agreed value
Which optional coverage provides that the increase in the amount of insurance will
occur steadily over the period of the year for which the coverage is provided? -
ANSWER-Inflation guard
The Builders Risk Form coverage would cease in all of the following cases EXCEPT -
ANSWER-Immediately after construction is completed
The Builders Risk coverage form can be used to cover - ANSWER-Farm buildings
under construction
Business income coverage forms pay for all of the following EXCEPT - ANSWER-
accounts receivable
Which commercial property form would cover the extra expenses needed to continue
operations at any cost? - ANSWER-Extra expense coverage form
The Legal Liability coverage form covers damage to property of others while in the
insured's control... - ANSWER-Only if the insured is legally liable for the damageq
The glass coverage form would NOT cover... - ANSWER-Malicious scratching of glass
The Condominmium Form that provides coverage for the building is... - ANSWER-
Condominium association form
The Condominium Form that covers business personal property owned by the
condominium association is... - ANSWER-Condominium Association Form
The Condo Commercial Unit-Owners Form does NOT cover - ANSWER-Buildings
, The Condo Commercial Unit Owners Form provides coverage on fixtures,
improvements, alterations, and appliances - ANSWER-By endorsement
The equipment breakdown coverage part of the Commercial Package Policy -
ANSWER-Has it's own declarations page
Equipment breakdown covers - ANSWER-Expediting expenses
Equipment breakdown coverage EXCLUDES - ANSWER-Damage due to testing of any
object
All of the following are coverage's under the equipment breakdown protection form
EXCEPT... - ANSWER-Fire or combustion explosion
Equipment breakdown does NOT cover - ANSWER-Viruses in computer programs
The valuation condition provides that payment for loss will be made on a replacement
cost basis if the insured repairs or replaces the property within how many months? -
ANSWER-24 months
If a repair improves the environment, increases efficiency or enhances safety, what
additional percent will be paid - ANSWER-25%
The insured reports net sales, comissions, and expenses to the insurer within three
months of the report date indicated in the Declarations and every anniversary thereafter
to determine the premium charge for business interruption coverage. Noncompliance
results in... - ANSWER-A 100% coinsurance requirement
Which of the following types of property is not a category under the Nationwide Marine
Definition? - ANSWER-Warehouses
The commercial inland marine conditions form states that valuation is the lesser of -
ANSWER-Actual cash value or replacement value
The accounts receivable form excludes - ANSWER-Accounting errors
The Inland Marine form that covers a customer's property while in the insured
business's control for cleaning, repairing, or servicing is - ANSWER-Bailees customer
The one who owns the property held by someone else for some special purpose and
then returned to the owner is the - ANSWER-Bailor
A John Deere implement dealer would use which inland marine form to cover stock in
tradw - ANSWER-Equipment dealers
Complete Solutions
Under the common policy conditions of the commercial package policy, who is the party
responsible for the payment of premiums? - ANSWER-First Named Insured
Notice of cancellation under the commercial package policy for nonpayment of premium
is... - ANSWER-10 days
Policy conditions may be changed only by - ANSWER-An endorsement issued by the
insurer
The insurer is granted the right to audit books and records of the insured relating to the
policy for a period of up to how many years after the end of the period? - ANSWER-3
years
The insurer is granted the right to make inspections, surveys, reports, and
recommendations - ANSWER-Only with the written consent of the insured
In the event of the insured's death, rights, and duties are automatically transferred to the
insured's... - ANSWER-Legal representative
Under the commercial property conditions form, the insured is permitted to brig suit
within how many years? - ANSWER-24 months
The policy territory of the commercial property form EXCLUDES... - ANSWER-Mexico
The Basic Cause of Loss Form may EXCLUDE which of the following by endorsement?
- ANSWER-Sprinkler leakage
The Basic Cause of Loss Form covers... - ANSWER-Sonic boom
The Broad cause of loss form covers collapse due to... - ANSWER-Falling objects
Coverage under the Special cause of loss form is on the basis of... - ANSWER-Open
perils
The Earthquake Form covers earthquake and volcanic eruption, explosion, or effusion
during the policy period or within how many hours after policy expiration? - ANSWER-
168 hours
,The earthquake cause of loss form covers... - ANSWER-Volcanic eruption
Which of the following is NOT an optional coverage endorsement to the Building and
Personal Property Form? - ANSWER-Builders Risk Coverage Form
The form to be used for fluctuating business inventories is the... - ANSWER-Value
Reporting Form
The building and Personal Property coverage from would NOT include... - ANSWER-
Bridges, walks, patios, and other paved surfaces
All of the coverage extension limits and the Fire Department Service Charge limits are...
- ANSWER-Additional amounts of insurance
The optional coverage in the Buildings and Personal Property Coverage Form which
suspends the coinsurance provisions, guaranteeing that the insured will not suffer a
coinsurance penalty is.. - ANSWER-Agreed value
Which optional coverage provides that the increase in the amount of insurance will
occur steadily over the period of the year for which the coverage is provided? -
ANSWER-Inflation guard
The Builders Risk Form coverage would cease in all of the following cases EXCEPT -
ANSWER-Immediately after construction is completed
The Builders Risk coverage form can be used to cover - ANSWER-Farm buildings
under construction
Business income coverage forms pay for all of the following EXCEPT - ANSWER-
accounts receivable
Which commercial property form would cover the extra expenses needed to continue
operations at any cost? - ANSWER-Extra expense coverage form
The Legal Liability coverage form covers damage to property of others while in the
insured's control... - ANSWER-Only if the insured is legally liable for the damageq
The glass coverage form would NOT cover... - ANSWER-Malicious scratching of glass
The Condominmium Form that provides coverage for the building is... - ANSWER-
Condominium association form
The Condominium Form that covers business personal property owned by the
condominium association is... - ANSWER-Condominium Association Form
The Condo Commercial Unit-Owners Form does NOT cover - ANSWER-Buildings
, The Condo Commercial Unit Owners Form provides coverage on fixtures,
improvements, alterations, and appliances - ANSWER-By endorsement
The equipment breakdown coverage part of the Commercial Package Policy -
ANSWER-Has it's own declarations page
Equipment breakdown covers - ANSWER-Expediting expenses
Equipment breakdown coverage EXCLUDES - ANSWER-Damage due to testing of any
object
All of the following are coverage's under the equipment breakdown protection form
EXCEPT... - ANSWER-Fire or combustion explosion
Equipment breakdown does NOT cover - ANSWER-Viruses in computer programs
The valuation condition provides that payment for loss will be made on a replacement
cost basis if the insured repairs or replaces the property within how many months? -
ANSWER-24 months
If a repair improves the environment, increases efficiency or enhances safety, what
additional percent will be paid - ANSWER-25%
The insured reports net sales, comissions, and expenses to the insurer within three
months of the report date indicated in the Declarations and every anniversary thereafter
to determine the premium charge for business interruption coverage. Noncompliance
results in... - ANSWER-A 100% coinsurance requirement
Which of the following types of property is not a category under the Nationwide Marine
Definition? - ANSWER-Warehouses
The commercial inland marine conditions form states that valuation is the lesser of -
ANSWER-Actual cash value or replacement value
The accounts receivable form excludes - ANSWER-Accounting errors
The Inland Marine form that covers a customer's property while in the insured
business's control for cleaning, repairing, or servicing is - ANSWER-Bailees customer
The one who owns the property held by someone else for some special purpose and
then returned to the owner is the - ANSWER-Bailor
A John Deere implement dealer would use which inland marine form to cover stock in
tradw - ANSWER-Equipment dealers
