Cic Commercial Property Exam

What are commercial property loss exposures - ANSWER-Buildings, personal property of owner, others and off premises, business income. What are some causes of loss - ANSWER-Fire, accident, weather, crime and disaster. What should be considered when determining coverage amounts - ANSWER-potential for loss and probable maximum loss. Coveage form includes loss payment at Actual Cash Value or ACV, what is ACV - ANSWER-The amount of loss minus depreciation. No set formula or definition for depreciation. What is included in building coverage - ANSWER-Attached to land, Property used to maintain the building, cooking and ventilation, cooking, laundry equip, floor covering, installed fixtures in and out (permanently in ground), repairs in progress, outdoor property. completed additions, What is included in personal property - ANSWER-located in building in open or in a vehicle w/in 100 ft. furniture, fixtures, machinery and equipment, stock, insureds bpp, labor and materials used in business, improvements and betterments (part of building and can not legally remove. leased bpp under a contract. elements of co insurance - ANSWER-did/should x loss = amount paid minus deductible Replacement cost defenition - ANSWER-replace with or rebuild to like kind and material, includes debri removal. When would an insured waive the rights of recovery against others. - ANSWER-When entered into a contract, before a loss. After a loss to another insured, business owned, owner of their business or a tenant. Advantage of blanket limit. - ANSWER-One bucket of limits to cover multiple locations and or multiple exposures (bld, bpp, pp of others). Consideration to blanket coverage - ANSWER-must carry 90 - 100% coinsurance, underwriting may not accept, statement of values must be obtained. rates apply for 1 yr, all locs and covered exposures must carry same cause of loss, all owners must be listed associated with owned locations. What are the added coverages? FIPPED - ANSWER-Debri removal, preservation of prop, pollution clean up, fire dept service charge, increased cost of const. edp.