CIC COMMERCIAL PROPERTY EXAMS SCRIPT QUESTIONS
AND SOLUTIONS 2025/2026 RATED A+
✔✔Learning Objective 3A: Advantages and Disadvantages of Blanket Coverage -
✔✔Advantages:
1. Named insured can apply insurance where needed when more than one type of
property is covered on a blanket basis
2. Handles fluctuating values between locations or fire rated divisions
3. Reporting forms easier to handle
4. Named insured may have 100% insurance to value at each location, but only has to
carry 90%.
Disadvantages:
1. 90 or 100% coinsurance required
2. Blanket may not be possible because of UW restricts
3. Statement of values must be obtained
4. Rates for one year only
5. Must have some causes of loss for all covered property
6. Must list all ownership interests with locations
✔✔Limitation on Loss Settlement - Blanket Insurance (Margin Clause) CP 12 32 - ✔✔-
Limits max amount payable for any item to the percentage shown in the Schedule times
the latest reported statement of values
-Severely restricts the "blanket concept"
✔✔Peak Season CP 12 30 - ✔✔-Allows named insured to increase coverage for a
specified number of days to reflect predictable seasonal increases in personal property
inventory
✔✔Value Reporting Form CP 13 10 - ✔✔-Designed for named insureds with fluctuating
personal property values or changing locations
-Named insured must have the willingness and ability to make the accurate and timely
required periodic reports
-Premium paid at policy inception is considered an advance premium. Final premium is
based on difference between the advance premium and the final premium calculated
then either paid by or returned.
-Reports can be daily, weekly, monthly, quarterly or year values.
-Value Reporting Examples:
1) First Report Late - Policy pays 75% of amount that would otherwise would have been
paid
2)Subsequent Reports Late - Policy pays no more than last report of values
, 3) Under Reported - Policy pays the percentage reported
4) In Excess Report - Policy limit applies
✔✔Collapse (Covered Perils) - ✔✔1. A specified cause of loss*
2. Breakage of Building Glass*
3. Weight of people or personal property*
4. Weight of rain that collects on a roof*
5. Hidden Decay
6. Hidden Insect or Vermin Damage
7. Use of Defective material or methods during the course of construction or renovation
8. Use of defective material or methods after construction is complete, if another
covered collapse peril is involved
*Collapse by these causes was not originally excluded.
✔✔Learning Objective 4: List of 6 Additional Coverages - ✔✔FIPPED
a. Debris Removal - Limited to 25% unless no Covered Property has direct Phys Dam,
then limited to $5K. Pays up to additional $25K if LOI is exhausted.
Debris Removal Additional Insurance CP 04 15 to increase.
b. Preservation of Property - "All risk" coverage
...1)Transit or while in temporary storage at another location
...2)Within 30 days
c. Fire Dept Service Charge - $1000 in addition to limit of insurance and not for
"voluntary payments"
d. Pollutant Clean-up and Removal - $10K in addition to limit for extraction of pollutants
Pollutant Clean up and Removal Additional Aggregate Limit of Insurance CP 04 07 to
increase the amount of pollutant cleanup
e. Increased Cost of Construction - Only to buildings with Replacement Cost. Limited to
$10K or 5% of building's LOI, whichever is less.
f. Electronic Data - $2500 aggregate limit. Data must be destroyed/corrupted by one of
named Causes of Loss.
Higher Limits CP 04 08 to increase limits on Schedule.
✔✔Learning Objective 5: List the Seven Coverage Extensions - ✔✔a. Newly Acquired
or Constructed Property
b. Personal Effects and Property of Others
c. Valuable Papers and Records
d. Property Off-premises
AND SOLUTIONS 2025/2026 RATED A+
✔✔Learning Objective 3A: Advantages and Disadvantages of Blanket Coverage -
✔✔Advantages:
1. Named insured can apply insurance where needed when more than one type of
property is covered on a blanket basis
2. Handles fluctuating values between locations or fire rated divisions
3. Reporting forms easier to handle
4. Named insured may have 100% insurance to value at each location, but only has to
carry 90%.
Disadvantages:
1. 90 or 100% coinsurance required
2. Blanket may not be possible because of UW restricts
3. Statement of values must be obtained
4. Rates for one year only
5. Must have some causes of loss for all covered property
6. Must list all ownership interests with locations
✔✔Limitation on Loss Settlement - Blanket Insurance (Margin Clause) CP 12 32 - ✔✔-
Limits max amount payable for any item to the percentage shown in the Schedule times
the latest reported statement of values
-Severely restricts the "blanket concept"
✔✔Peak Season CP 12 30 - ✔✔-Allows named insured to increase coverage for a
specified number of days to reflect predictable seasonal increases in personal property
inventory
✔✔Value Reporting Form CP 13 10 - ✔✔-Designed for named insureds with fluctuating
personal property values or changing locations
-Named insured must have the willingness and ability to make the accurate and timely
required periodic reports
-Premium paid at policy inception is considered an advance premium. Final premium is
based on difference between the advance premium and the final premium calculated
then either paid by or returned.
-Reports can be daily, weekly, monthly, quarterly or year values.
-Value Reporting Examples:
1) First Report Late - Policy pays 75% of amount that would otherwise would have been
paid
2)Subsequent Reports Late - Policy pays no more than last report of values
, 3) Under Reported - Policy pays the percentage reported
4) In Excess Report - Policy limit applies
✔✔Collapse (Covered Perils) - ✔✔1. A specified cause of loss*
2. Breakage of Building Glass*
3. Weight of people or personal property*
4. Weight of rain that collects on a roof*
5. Hidden Decay
6. Hidden Insect or Vermin Damage
7. Use of Defective material or methods during the course of construction or renovation
8. Use of defective material or methods after construction is complete, if another
covered collapse peril is involved
*Collapse by these causes was not originally excluded.
✔✔Learning Objective 4: List of 6 Additional Coverages - ✔✔FIPPED
a. Debris Removal - Limited to 25% unless no Covered Property has direct Phys Dam,
then limited to $5K. Pays up to additional $25K if LOI is exhausted.
Debris Removal Additional Insurance CP 04 15 to increase.
b. Preservation of Property - "All risk" coverage
...1)Transit or while in temporary storage at another location
...2)Within 30 days
c. Fire Dept Service Charge - $1000 in addition to limit of insurance and not for
"voluntary payments"
d. Pollutant Clean-up and Removal - $10K in addition to limit for extraction of pollutants
Pollutant Clean up and Removal Additional Aggregate Limit of Insurance CP 04 07 to
increase the amount of pollutant cleanup
e. Increased Cost of Construction - Only to buildings with Replacement Cost. Limited to
$10K or 5% of building's LOI, whichever is less.
f. Electronic Data - $2500 aggregate limit. Data must be destroyed/corrupted by one of
named Causes of Loss.
Higher Limits CP 04 08 to increase limits on Schedule.
✔✔Learning Objective 5: List the Seven Coverage Extensions - ✔✔a. Newly Acquired
or Constructed Property
b. Personal Effects and Property of Others
c. Valuable Papers and Records
d. Property Off-premises
