CALIFORNIA COMMERCIAL INSURANCE
EXAM QUESTIONS WITH 100% COMPLETE
SOLUTIONS| LATEST UPDATE
What happens if the insured fails to report updated values of stock/inventory under the
Value Reporting Form? - correct answer-The insurer will not pay a greater portion of
loss than the amount reported divided by the actual value.
EXAMPLE: If the insured reported $30,000 in inventory and actually had $50,000 in
inventory and suffered a $15,000 loss, the most the insurer will pay is 3/5 of $15,000
which is $9,000.
- correct answer-If the first report is overdue at the time of loss, the recovery will be
limited to 75% of the loss, subject to the reporting limit as a maximum.
What falls into the "property not covered" section of the BPP? - correct answer-
Accounts, bills, currency, deeds, food stamps, and other evidences of debt, money
notes, and securities.
Animals, unless non-owned and boarded by the insured or owned and held for sale
while inside covered buildings.
Automobiles held for sale.
Land, water, growing crops, and lawns.
Personal property while airborne or waterborne.
Contraband or property being illegally traded or transported.
Vehicles and other self-propelled machines, including aircraft and watercraft.
Grain, hay straw, or other crops outside of the building.
Piers, wharves, docks, bulkheads, retaining walls, paved surfaces, bridges and
roadways.
What 3 items are not covered under a BPP policy but can be covered under coverage
extensions? - correct answer-Outdoor signs not attached to the building(s).
Outdoor radio or TV antennas, including satellite dishes, and their lead-in wiring, masts
and towers.
OUtdoor fences, trees, shrubs, and plants, unless the items are the insured's
stock/inventory.
NOTE: The limit for coverage on these items is $1,000.
, What are Additional Coverages & Extensions under the BPP? - correct answer-
Additional coverages are provided under the Building and Personal Property Coverage
Form at no charge to the insured and in addition to the policy limits stated on the
declarations page.
The BPP coverage extensions apply only if at least 80% coinsurance or a value
reporting period symbol is shown in the declarations page. The amounts payable under
the coverage extensions are additional amounts of insurance and are not subject to the
limits of insurance stated in the declarations page.
What are the 6 Additional Coverages provided with a BPP? - correct answer-Debris
Removal, Removal of Property, Fire Department Service Charge, Pollutant Clean up,
Increased Cost of Construction, and Electronic Data.
Under the BPP, what does Debris Removal additional coverage cover? - correct
answer-Under the debris perms provision, the most the insurer will pay for debris
removal resulting from a covered loss is 25% of the sum of the direct loss payment plus
the amount of the deductible. There is an additional $10,000 limit per location provided
the direct loss and debris removal expense exceeded the limit of insurance.
Under the BPP, what does Increased Cost of Construction additional coverage cover? -
correct answer-The Increased Cost of Construction as an additional coverage provides
a small amount of insurance to cover this loss exposure. THe amount of insurance is
5% of the amount of the insurance or $10,000, which ever is less. It pays in addition to
the policy limit and applies only if the replacement cost option has been activated.
Under the BPP, what does Electronic Data additional coverage cover? - correct answer-
It provides $2,500 in coverage per policy year, for damages caused by Electronic
failure.
Under the BPP, what does the Fire Department Service Charge additional coverage
cover? - correct answer-Under this additional coverage, the insured is eligible for
reimbursement of up to $1,000 in charges for Fire Department service calls.
Under the BPP, what does the Pollutant Clean Up additional coverage cover? - correct
answer-This Coverage allows for up to $10,000 in expenses incurred by the insured as
a result of a covered loss incolcing a requirement to extract pollutants from land or
water at the described premises. This
EXAM QUESTIONS WITH 100% COMPLETE
SOLUTIONS| LATEST UPDATE
What happens if the insured fails to report updated values of stock/inventory under the
Value Reporting Form? - correct answer-The insurer will not pay a greater portion of
loss than the amount reported divided by the actual value.
EXAMPLE: If the insured reported $30,000 in inventory and actually had $50,000 in
inventory and suffered a $15,000 loss, the most the insurer will pay is 3/5 of $15,000
which is $9,000.
- correct answer-If the first report is overdue at the time of loss, the recovery will be
limited to 75% of the loss, subject to the reporting limit as a maximum.
What falls into the "property not covered" section of the BPP? - correct answer-
Accounts, bills, currency, deeds, food stamps, and other evidences of debt, money
notes, and securities.
Animals, unless non-owned and boarded by the insured or owned and held for sale
while inside covered buildings.
Automobiles held for sale.
Land, water, growing crops, and lawns.
Personal property while airborne or waterborne.
Contraband or property being illegally traded or transported.
Vehicles and other self-propelled machines, including aircraft and watercraft.
Grain, hay straw, or other crops outside of the building.
Piers, wharves, docks, bulkheads, retaining walls, paved surfaces, bridges and
roadways.
What 3 items are not covered under a BPP policy but can be covered under coverage
extensions? - correct answer-Outdoor signs not attached to the building(s).
Outdoor radio or TV antennas, including satellite dishes, and their lead-in wiring, masts
and towers.
OUtdoor fences, trees, shrubs, and plants, unless the items are the insured's
stock/inventory.
NOTE: The limit for coverage on these items is $1,000.
, What are Additional Coverages & Extensions under the BPP? - correct answer-
Additional coverages are provided under the Building and Personal Property Coverage
Form at no charge to the insured and in addition to the policy limits stated on the
declarations page.
The BPP coverage extensions apply only if at least 80% coinsurance or a value
reporting period symbol is shown in the declarations page. The amounts payable under
the coverage extensions are additional amounts of insurance and are not subject to the
limits of insurance stated in the declarations page.
What are the 6 Additional Coverages provided with a BPP? - correct answer-Debris
Removal, Removal of Property, Fire Department Service Charge, Pollutant Clean up,
Increased Cost of Construction, and Electronic Data.
Under the BPP, what does Debris Removal additional coverage cover? - correct
answer-Under the debris perms provision, the most the insurer will pay for debris
removal resulting from a covered loss is 25% of the sum of the direct loss payment plus
the amount of the deductible. There is an additional $10,000 limit per location provided
the direct loss and debris removal expense exceeded the limit of insurance.
Under the BPP, what does Increased Cost of Construction additional coverage cover? -
correct answer-The Increased Cost of Construction as an additional coverage provides
a small amount of insurance to cover this loss exposure. THe amount of insurance is
5% of the amount of the insurance or $10,000, which ever is less. It pays in addition to
the policy limit and applies only if the replacement cost option has been activated.
Under the BPP, what does Electronic Data additional coverage cover? - correct answer-
It provides $2,500 in coverage per policy year, for damages caused by Electronic
failure.
Under the BPP, what does the Fire Department Service Charge additional coverage
cover? - correct answer-Under this additional coverage, the insured is eligible for
reimbursement of up to $1,000 in charges for Fire Department service calls.
Under the BPP, what does the Pollutant Clean Up additional coverage cover? - correct
answer-This Coverage allows for up to $10,000 in expenses incurred by the insured as
a result of a covered loss incolcing a requirement to extract pollutants from land or
water at the described premises. This
