CIC COMMERCIAL PROPERTY EXAM 2025/2026 QUESTIONS
WITH ANSWERS GRADED A+
✔✔Define period of restoration - ✔✔1. begins with covered property loss with a 72 hour
deductible that only applies to business income and not extra expense
2. Ends when property should be repaired or relocated
3. Policy expiration will not limit the period
✔✔Define Extra Expense - ✔✔1. Necessary above normal expenses due to loss
2. needed to continue operations any location
3. reduce the suspension of operations
✔✔Additional coverage's found in the BI Coverage forms - ✔✔1. Civil authority -
damage to a premises within 1 mile that prevents access to property
2. Alterations and New buildings
3. Extended business income
✔✔List and describe the optional coverages available to avoid the coinsurance penalty -
✔✔1. Maximum period of indemnity
2. Monthly limit of indemnity
3. AV
4. Extended period of indemnity
✔✔Maximum period of indemnity loss settlement - ✔✔coinsurance does not apply and
loss is limited to less of limit of insurance or 120 days following the beginning of the
period of restoration. This can be expensive.
✔✔Business Income Coinsurance formula - ✔✔Amount required = (Net Income +
Operating expense) x Coinsurance
Amount carried = Limit of insurance
Carried/ Required = Recovery
*This is opposite of property coinsurance did/ should. For BI it is should/did
✔✔Determine how losses are settled under Agreed value - ✔✔1) No coinsurance
2) Requires Business Income Reporting worksheets every 12 months
✔✔Six Additional Coverages - ✔✔1. Debris removal
2. preservation of property
3. increased cost of construction
4. fire department service charge
5. pollutant cleanup and removal
6. electronic data
WITH ANSWERS GRADED A+
✔✔Define period of restoration - ✔✔1. begins with covered property loss with a 72 hour
deductible that only applies to business income and not extra expense
2. Ends when property should be repaired or relocated
3. Policy expiration will not limit the period
✔✔Define Extra Expense - ✔✔1. Necessary above normal expenses due to loss
2. needed to continue operations any location
3. reduce the suspension of operations
✔✔Additional coverage's found in the BI Coverage forms - ✔✔1. Civil authority -
damage to a premises within 1 mile that prevents access to property
2. Alterations and New buildings
3. Extended business income
✔✔List and describe the optional coverages available to avoid the coinsurance penalty -
✔✔1. Maximum period of indemnity
2. Monthly limit of indemnity
3. AV
4. Extended period of indemnity
✔✔Maximum period of indemnity loss settlement - ✔✔coinsurance does not apply and
loss is limited to less of limit of insurance or 120 days following the beginning of the
period of restoration. This can be expensive.
✔✔Business Income Coinsurance formula - ✔✔Amount required = (Net Income +
Operating expense) x Coinsurance
Amount carried = Limit of insurance
Carried/ Required = Recovery
*This is opposite of property coinsurance did/ should. For BI it is should/did
✔✔Determine how losses are settled under Agreed value - ✔✔1) No coinsurance
2) Requires Business Income Reporting worksheets every 12 months
✔✔Six Additional Coverages - ✔✔1. Debris removal
2. preservation of property
3. increased cost of construction
4. fire department service charge
5. pollutant cleanup and removal
6. electronic data
