CPCU 551: ASSIGNMENT 2 EXAM 2025
QUESTIONS AND ANSWERS
2.1 The Insurance Services Office, Inc (ISO) Building and Personal Property Coverage Form (BPP)
can cover any combination of these 3 broad categories of property - ANS 1. Building 2. Your
Business Personal Property 3. Personal Propety of Others
2.1 If a business owns an office building and insures it under a BPP and only the building is listed
in the declarations page would equipment that the business owns and uses to clean and
maintain the building be considered covered property under its BPP? - ANS Yes - equipment
would be covered property under the BPP because the definiton of "building" includes personal
propety owned by the insured and used to maintain or service the building or its premises.
2.1 BPP can be purchased as ______ OR _________. - ANS the ONLY coverage in a monoline
commerical property policy or as part of a commerical package policy (CPP_
2.1 CPP (Commerical Package Policy) - ANS A CPP combines multiple types of coverage, such
as property and liability coverage, under a single policy and offers flexbility to insureds by
allowing them to bundle various types of coverages under one policy.
2.1 Categories of property that are covered in a commerical property coverage policy
containing the BPP are indicated on - ANS the commerical property declarations page with a
limit of insurance entered for each
2.1 If no entry appears for a category (example:Building) on the commerical propety
declarations page of a commerical property coverage policy containing the BPP that means.... -
ANS No coverage applies to that category.
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,2.1 Will the damage be covered under the businss's BPP? A medical center has an office on a
large lot that contains an open field and a pond. The medical center installed several benches
and picnic tables about 75 feet from its office building along a walking path that circles the
pond. The benches and tables have bee vandalized. - ANS Yes, the damage to the benches
and tables would be covered under the Business Personal Property category of the BPP because
they're located in the open and within 100 ft of the insured building.
2.1 Classes of property (or kinds of property losses) that do not qualify as covered propety in
the BPP are listed in - ANS the BPP's Property Not Covered section
2.1 Common reasons for BPP's Property Not Covered - ANS 1. Illegal to insure: example,
smuggled goods being held for sale. 2. Much less susceptible to loss by most perils insured
against: example, building foundations below the lowest basement floor or surface of the
ground 3. Able to be insured more advantageously under other forms: example, money,
securities, auto, aircraft
2.1 Insurance can be made available for almost all items listed in the BPP's Property Not
Covered section by - ANS Endorsement.
2.1 Only ________ is totally uninsurable. - ANS Contraband or property in the course of
illegal transportation or trade
2.1 Special limits of liability - ANS Internal dollar limits on certain specified classes of
property that apply regardless of the overall policy limit.
2.1
Coinsurance - ANS An insurance-to-value provision in many property insurance policies
providing that if the property is underinsured, the amount that an insurer will pay for a covered
loss is reduced
2.1
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, Anti-concurrent causation wording - ANS Wording in an insurance policy that eliminates
coverage for a loss that was caused by more than one peril if one or more of the perils is
subject to a policy exclusion.
2.1 In the BPP - Property insured under another coverage form in the same policy or any other
poilicy in which the property is __________ is listed as property not covered. However, it is not
totally exluded, the BPP covers such property in __________. - ANS "More specifically
described" the BPP covers such property in excess of the other insurance.
2.1 A financial company has a computer system valued at $150,000 under the general category
of business personal property in its BPP. However, the system is also insured for $100,000
under a separate computer equipment policy issued by a different insurer which specifically
describes the computer system. If the computer system is destroyed by a fire how much of the
loss would each insurer pay? - ANS The insurer that issued the computer equipment policy
would pay its limit of $100,000 and the insurer that issued the BPP would then pay the rest of
the loss up to the business personal property limit.
2.1 Animals are not property covered but if they are either ______ or ____________ then the
animals are not excluded under the Property Not Covered. - ANS 1. Owned by others and
being boarded by the insured 2. Owned by the insured and being held as stock inside a building
(such as a pet shop)
2.2 Special limits of liability - ANS Sometimes called sublimits. Internal dollar limits on certain
specified classes of property that apply regardless of the overall policy limit.
2.2 Special limits of liability are typically - ANS less than the upper limit for the policy
2.2 How could you increase the limits for many of the BPP's additional coverages and coverage
extensions? - ANS Limits of the BPP's additional coverages and coverage extensions can be
increased by inputting higher limits in the delcarations, adding an appropriate coverage
endorsement, or buying another type of policy to supplement the BPP.
3 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
QUESTIONS AND ANSWERS
2.1 The Insurance Services Office, Inc (ISO) Building and Personal Property Coverage Form (BPP)
can cover any combination of these 3 broad categories of property - ANS 1. Building 2. Your
Business Personal Property 3. Personal Propety of Others
2.1 If a business owns an office building and insures it under a BPP and only the building is listed
in the declarations page would equipment that the business owns and uses to clean and
maintain the building be considered covered property under its BPP? - ANS Yes - equipment
would be covered property under the BPP because the definiton of "building" includes personal
propety owned by the insured and used to maintain or service the building or its premises.
2.1 BPP can be purchased as ______ OR _________. - ANS the ONLY coverage in a monoline
commerical property policy or as part of a commerical package policy (CPP_
2.1 CPP (Commerical Package Policy) - ANS A CPP combines multiple types of coverage, such
as property and liability coverage, under a single policy and offers flexbility to insureds by
allowing them to bundle various types of coverages under one policy.
2.1 Categories of property that are covered in a commerical property coverage policy
containing the BPP are indicated on - ANS the commerical property declarations page with a
limit of insurance entered for each
2.1 If no entry appears for a category (example:Building) on the commerical propety
declarations page of a commerical property coverage policy containing the BPP that means.... -
ANS No coverage applies to that category.
1 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
,2.1 Will the damage be covered under the businss's BPP? A medical center has an office on a
large lot that contains an open field and a pond. The medical center installed several benches
and picnic tables about 75 feet from its office building along a walking path that circles the
pond. The benches and tables have bee vandalized. - ANS Yes, the damage to the benches
and tables would be covered under the Business Personal Property category of the BPP because
they're located in the open and within 100 ft of the insured building.
2.1 Classes of property (or kinds of property losses) that do not qualify as covered propety in
the BPP are listed in - ANS the BPP's Property Not Covered section
2.1 Common reasons for BPP's Property Not Covered - ANS 1. Illegal to insure: example,
smuggled goods being held for sale. 2. Much less susceptible to loss by most perils insured
against: example, building foundations below the lowest basement floor or surface of the
ground 3. Able to be insured more advantageously under other forms: example, money,
securities, auto, aircraft
2.1 Insurance can be made available for almost all items listed in the BPP's Property Not
Covered section by - ANS Endorsement.
2.1 Only ________ is totally uninsurable. - ANS Contraband or property in the course of
illegal transportation or trade
2.1 Special limits of liability - ANS Internal dollar limits on certain specified classes of
property that apply regardless of the overall policy limit.
2.1
Coinsurance - ANS An insurance-to-value provision in many property insurance policies
providing that if the property is underinsured, the amount that an insurer will pay for a covered
loss is reduced
2.1
2 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
, Anti-concurrent causation wording - ANS Wording in an insurance policy that eliminates
coverage for a loss that was caused by more than one peril if one or more of the perils is
subject to a policy exclusion.
2.1 In the BPP - Property insured under another coverage form in the same policy or any other
poilicy in which the property is __________ is listed as property not covered. However, it is not
totally exluded, the BPP covers such property in __________. - ANS "More specifically
described" the BPP covers such property in excess of the other insurance.
2.1 A financial company has a computer system valued at $150,000 under the general category
of business personal property in its BPP. However, the system is also insured for $100,000
under a separate computer equipment policy issued by a different insurer which specifically
describes the computer system. If the computer system is destroyed by a fire how much of the
loss would each insurer pay? - ANS The insurer that issued the computer equipment policy
would pay its limit of $100,000 and the insurer that issued the BPP would then pay the rest of
the loss up to the business personal property limit.
2.1 Animals are not property covered but if they are either ______ or ____________ then the
animals are not excluded under the Property Not Covered. - ANS 1. Owned by others and
being boarded by the insured 2. Owned by the insured and being held as stock inside a building
(such as a pet shop)
2.2 Special limits of liability - ANS Sometimes called sublimits. Internal dollar limits on certain
specified classes of property that apply regardless of the overall policy limit.
2.2 Special limits of liability are typically - ANS less than the upper limit for the policy
2.2 How could you increase the limits for many of the BPP's additional coverages and coverage
extensions? - ANS Limits of the BPP's additional coverages and coverage extensions can be
increased by inputting higher limits in the delcarations, adding an appropriate coverage
endorsement, or buying another type of policy to supplement the BPP.
3 COPYRIGHT © 2025 SIRJOEL ALL RIGHTS RESERVED
