CISR Insuring Commercial Property
Exam Solved 100% Correct 2025 New
Update
Select the answer that most closely describes Actual Cash Value (ACV). - Answer ✔✔-
A method of establishing the value of property wherein depreciation and obsolescence
are deducted from the value of the property.
Select the answer that most closely describes Functional Replacement Cost. - Answer
✔✔- A provision which changes the policy valuation so as to provide for replacement
with a different structure which performs the same service or function, but is less costly.
Which of the following statements best defines direct loss? - Answer ✔✔- Losses
incurred when there is tangible visible damage to the insured's property.
Which one of the following does not have an insurable interest in a property? - Answer
✔✔- Neighboring businesses
Select the answer that most closely describes Replacement Cost. - Answer ✔✔-
Insurance issued in an amount to cover the property described for a limit that will be
adequate to replace the structure at the cost of today's labor and materials.
Which one of these statements best describes Coinsurance? - Answer ✔✔- A
contractual promise to carry an amount of insurance equal to, or greater than, a fixed
percent of the current value of the property. Failure to comply results in a penalty.
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
What amount of insurance is required to comply with the coinsurance provision? -
Answer ✔✔- $240,000
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
How much will the policy pay? - Answer ✔✔- $37,500
Using the values listed below, answer the coinsurance problem. Ignore deductibles
,Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
What amount of insurance is required to comply with the coinsurance provision? -
Answer ✔✔- $400,000
What amount of insurance is required to comply with the coinsurance provision, and
how much will the policy pay?
Building Value (at time of loss) $100,000 Policy Limit $80,000
80% Coinsurance Clause Loss amount $15,000 - Answer ✔✔- $80,000; $15,000
Using the values listed below, answer the coinsurance problem. Ignore deductibles.
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
Did the insured comply with the coinsurance provision? - Answer ✔✔- No
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
Did the insured comply with the coinsurance provision? - Answer ✔✔- Yes
Which of the following statements best defines and summarizes all the features of
Agreed Value? - Answer ✔✔- An option in the Commercial Property policy which
suspends the coinsurance clause. The insured is required to file a statement of values
with the insurance company; the company must agree with the values filed. The policy
is written at the agreed value, and then the coinsurance clause is suspended for one
year only, not to extend beyond the policy expiration date.
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
How much will the policy pay? - Answer ✔✔- $37,500
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
, Did the insured comply with the coinsurance provision? - Answer ✔✔- Yes
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
What amount of insurance is required to comply with the coinsurance provision? -
Answer ✔✔- $240,000
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
What amount of insurance is required to comply with the coinsurance provision? -
Answer ✔✔- $400,000
What amount of insurance is required to comply with the coinsurance provision, and
how much will the policy pay?
Building Value (at time of loss) $100,000 Policy Limit $80,000
80% Coinsurance Clause Loss amount $15,000 - Answer ✔✔- $80,000; $15,000
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
How much will the policy pay? - Answer ✔✔- $240,000
Which one of these statements best describes Coinsurance? - Answer ✔✔- A
contractual promise to carry an amount of insurance equal to, or greater than, a fixed
percent of the current value of the property. Failure to comply results in a penalty.
Which of the following statements best defines and summarizes all the features of
Agreed Value? - Answer ✔✔- An option in the Commercial Property policy which
suspends the coinsurance clause. The insured is required to file a statement of values
with the insurance company; the company must agree with the values filed. The policy
is written at the agreed value, and then the coinsurance clause is suspended for one
year only, not to extend beyond the policy expiration date.
Using the values listed below, answer the coinsurance problem. Ignore deductibles.
Building Value (at time of loss) $500,000 Policy Limit $300,000
Exam Solved 100% Correct 2025 New
Update
Select the answer that most closely describes Actual Cash Value (ACV). - Answer ✔✔-
A method of establishing the value of property wherein depreciation and obsolescence
are deducted from the value of the property.
Select the answer that most closely describes Functional Replacement Cost. - Answer
✔✔- A provision which changes the policy valuation so as to provide for replacement
with a different structure which performs the same service or function, but is less costly.
Which of the following statements best defines direct loss? - Answer ✔✔- Losses
incurred when there is tangible visible damage to the insured's property.
Which one of the following does not have an insurable interest in a property? - Answer
✔✔- Neighboring businesses
Select the answer that most closely describes Replacement Cost. - Answer ✔✔-
Insurance issued in an amount to cover the property described for a limit that will be
adequate to replace the structure at the cost of today's labor and materials.
Which one of these statements best describes Coinsurance? - Answer ✔✔- A
contractual promise to carry an amount of insurance equal to, or greater than, a fixed
percent of the current value of the property. Failure to comply results in a penalty.
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
What amount of insurance is required to comply with the coinsurance provision? -
Answer ✔✔- $240,000
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
How much will the policy pay? - Answer ✔✔- $37,500
Using the values listed below, answer the coinsurance problem. Ignore deductibles
,Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
What amount of insurance is required to comply with the coinsurance provision? -
Answer ✔✔- $400,000
What amount of insurance is required to comply with the coinsurance provision, and
how much will the policy pay?
Building Value (at time of loss) $100,000 Policy Limit $80,000
80% Coinsurance Clause Loss amount $15,000 - Answer ✔✔- $80,000; $15,000
Using the values listed below, answer the coinsurance problem. Ignore deductibles.
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
Did the insured comply with the coinsurance provision? - Answer ✔✔- No
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
Did the insured comply with the coinsurance provision? - Answer ✔✔- Yes
Which of the following statements best defines and summarizes all the features of
Agreed Value? - Answer ✔✔- An option in the Commercial Property policy which
suspends the coinsurance clause. The insured is required to file a statement of values
with the insurance company; the company must agree with the values filed. The policy
is written at the agreed value, and then the coinsurance clause is suspended for one
year only, not to extend beyond the policy expiration date.
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
How much will the policy pay? - Answer ✔✔- $37,500
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
, Did the insured comply with the coinsurance provision? - Answer ✔✔- Yes
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
What amount of insurance is required to comply with the coinsurance provision? -
Answer ✔✔- $240,000
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $500,000 Policy Limit $300,000
80% Coinsurance Clause Loss amount $50,000
What amount of insurance is required to comply with the coinsurance provision? -
Answer ✔✔- $400,000
What amount of insurance is required to comply with the coinsurance provision, and
how much will the policy pay?
Building Value (at time of loss) $100,000 Policy Limit $80,000
80% Coinsurance Clause Loss amount $15,000 - Answer ✔✔- $80,000; $15,000
Using the values listed below, answer the coinsurance problem. Ignore deductibles
Building Value (at time of loss) $300,000 Policy Limit $240,000
80% Coinsurance Clause Loss amount $280,000
How much will the policy pay? - Answer ✔✔- $240,000
Which one of these statements best describes Coinsurance? - Answer ✔✔- A
contractual promise to carry an amount of insurance equal to, or greater than, a fixed
percent of the current value of the property. Failure to comply results in a penalty.
Which of the following statements best defines and summarizes all the features of
Agreed Value? - Answer ✔✔- An option in the Commercial Property policy which
suspends the coinsurance clause. The insured is required to file a statement of values
with the insurance company; the company must agree with the values filed. The policy
is written at the agreed value, and then the coinsurance clause is suspended for one
year only, not to extend beyond the policy expiration date.
Using the values listed below, answer the coinsurance problem. Ignore deductibles.
Building Value (at time of loss) $500,000 Policy Limit $300,000
