RMIN 5100S Test 2 Brown Questions and
Answers 2026 Update
categories of commercial loss exposures - Correct Answers
✅1. property (tangible v intangible)
2. personnel (death, disability, retirement, injury of
employees)
3. liability (your responsibility for bodily injury)
4. net income (reduction in income due to direct loss)
commercial property loss exposures (categories) - Correct
Answers ✅type of property
causes of loss to property
financial consequences of property losses
commercial property coverage part
types of property - Correct Answers ✅real and personal
real property - Correct Answers ✅land & buildings, all
property permanently attached to buildings, driveways,
sidewalks, underground piping, etc, plumbing, wiring, HVAC
(within the walls)
personal property - Correct Answers ✅all property that is
not real property (tools, cash, furniture, clothing)
,RMIN 5100S Test 2 Brown Questions and
Answers 2026 Update
personal property classifications - Correct Answers
✅contents (business personal property/BPP and property of
others in the insured's care, custody, and control)
Property in transit - limited amount of coverage; might need
separate cargo insurance
Property in the possession of others
"Floating" property - photographer has camera, handyman
has tools, farmer has tractors; limited amount of coverage;
might need inland marine endorsement
causes of loss to property - Correct Answers ✅Fire - poses
greatest risk to large or total loss
Windstorm (hurricane/tornadoes)
Theft
Flood
Earthquake
Terrorism
War
financial consequences of property loss - Correct Answers
✅Cost to repair or replace damaged property
,RMIN 5100S Test 2 Brown Questions and
Answers 2026 Update
Loss of business income while property is being repaired or
replaced (indirect loss)
Extra expenses to resume operations (business has to
temporarily relocate, rent vehicles)
coinsurance in health - Correct Answers ✅requires the
insured to pay a certain percentage of covered medical
expenses in excess of the deductible and/or copayment
Purpose: to reduce overutilization of policy benefits, to reduce
premiums
Examples with and without coinsurance
coinsurance in property - Correct Answers ✅requires the
insured to insure their property to a specific percentage (full)
of its value. If not insured to that value (full), the insured is
penalized with lower claim payments at the time of loss
Purpose: encourage insureds to insure property to its full
value, achieve equity in rating
, RMIN 5100S Test 2 Brown Questions and
Answers 2026 Update
Why would someone choose to not insure their property to its
full value? - Correct Answers ✅Premium is a function of the
limit (amount) of insurance. The higher the amount of
insurance, the higher the premium
Most losses are partial losses
Due to the time and cost involved, insurers do not verify
every detail reported by the insured at the time of application
property coinsurance equations
loss payment=
amount of insurance required= - Correct Answers ✅=
((amount of insurance carried/amount of insurance required)
x loss) - deductible
= property reconstruction cost x coinsurance percentage
property coinsurance key points - Correct Answers ✅When
insurers are confident that insureds are insuring to full value,
the insurance companies can apply a discounted rate to all
insureds. This achieves equity in rating.
Answers 2026 Update
categories of commercial loss exposures - Correct Answers
✅1. property (tangible v intangible)
2. personnel (death, disability, retirement, injury of
employees)
3. liability (your responsibility for bodily injury)
4. net income (reduction in income due to direct loss)
commercial property loss exposures (categories) - Correct
Answers ✅type of property
causes of loss to property
financial consequences of property losses
commercial property coverage part
types of property - Correct Answers ✅real and personal
real property - Correct Answers ✅land & buildings, all
property permanently attached to buildings, driveways,
sidewalks, underground piping, etc, plumbing, wiring, HVAC
(within the walls)
personal property - Correct Answers ✅all property that is
not real property (tools, cash, furniture, clothing)
,RMIN 5100S Test 2 Brown Questions and
Answers 2026 Update
personal property classifications - Correct Answers
✅contents (business personal property/BPP and property of
others in the insured's care, custody, and control)
Property in transit - limited amount of coverage; might need
separate cargo insurance
Property in the possession of others
"Floating" property - photographer has camera, handyman
has tools, farmer has tractors; limited amount of coverage;
might need inland marine endorsement
causes of loss to property - Correct Answers ✅Fire - poses
greatest risk to large or total loss
Windstorm (hurricane/tornadoes)
Theft
Flood
Earthquake
Terrorism
War
financial consequences of property loss - Correct Answers
✅Cost to repair or replace damaged property
,RMIN 5100S Test 2 Brown Questions and
Answers 2026 Update
Loss of business income while property is being repaired or
replaced (indirect loss)
Extra expenses to resume operations (business has to
temporarily relocate, rent vehicles)
coinsurance in health - Correct Answers ✅requires the
insured to pay a certain percentage of covered medical
expenses in excess of the deductible and/or copayment
Purpose: to reduce overutilization of policy benefits, to reduce
premiums
Examples with and without coinsurance
coinsurance in property - Correct Answers ✅requires the
insured to insure their property to a specific percentage (full)
of its value. If not insured to that value (full), the insured is
penalized with lower claim payments at the time of loss
Purpose: encourage insureds to insure property to its full
value, achieve equity in rating
, RMIN 5100S Test 2 Brown Questions and
Answers 2026 Update
Why would someone choose to not insure their property to its
full value? - Correct Answers ✅Premium is a function of the
limit (amount) of insurance. The higher the amount of
insurance, the higher the premium
Most losses are partial losses
Due to the time and cost involved, insurers do not verify
every detail reported by the insured at the time of application
property coinsurance equations
loss payment=
amount of insurance required= - Correct Answers ✅=
((amount of insurance carried/amount of insurance required)
x loss) - deductible
= property reconstruction cost x coinsurance percentage
property coinsurance key points - Correct Answers ✅When
insurers are confident that insureds are insuring to full value,
the insurance companies can apply a discounted rate to all
insureds. This achieves equity in rating.
