CIC COMMERCIAL PROPERTY ACTUAL EXAM
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉ Explain replacement cost. Answer: - without deduction for
depreciation
- claims are paid on acv until repairs or replacements is complete and
then difference is paid
- does not apply to pp of others, contents of residence or fine arts
◉ Optional Coverage - RC PP OF OTHERS. Answer: - applies rc to
property of others but limited to the lessor of amount required by
contract or RC
◉ Loss Payment options (4). Answer: 1. Pay the value
2. Pay the cost to repair or replace
3. take the property at an agreed or appraised value
4. repair, rebuild or replace with like kind and quality
◉ Vacancy provision - describe and apply. Answer: 1. Tenant - does not
contain enough BPP to conduct customary operations
2. owner - must be at least 31% leased and used by lessee to conduct
customary operations
, 3. Under construction or renovation are not vacant
4. vacant for 60 consecutive days - theft, vandalism, sprinkler leakage,
glass breakage, and attempted theft are not covered perils
5. all other causes of loss payment is reduced by 15%
◉ Endorsement that modify valuation provision (6). Answer: 1.
Manufacturers selling price (finished stock)
2. market value - stock
3. manufactures consequential loss assumption
4. Functional personal property valuation
5. functional building valuation
6. increased cost of loss and related expenses for green updates
◉ Describe increased cost of construction - green endorsement. Answer:
includes additional cost to repair or replace with green materials
- coinsurance does not apply
- a limit must be selected for green upgrades
- a percentage must be selected (10%, 20%) and the most the policy will
pay is the amount paid for the loss plus deductible times the % selected
◉ coinsurance formula. Answer: did/should x loss
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉ Explain replacement cost. Answer: - without deduction for
depreciation
- claims are paid on acv until repairs or replacements is complete and
then difference is paid
- does not apply to pp of others, contents of residence or fine arts
◉ Optional Coverage - RC PP OF OTHERS. Answer: - applies rc to
property of others but limited to the lessor of amount required by
contract or RC
◉ Loss Payment options (4). Answer: 1. Pay the value
2. Pay the cost to repair or replace
3. take the property at an agreed or appraised value
4. repair, rebuild or replace with like kind and quality
◉ Vacancy provision - describe and apply. Answer: 1. Tenant - does not
contain enough BPP to conduct customary operations
2. owner - must be at least 31% leased and used by lessee to conduct
customary operations
, 3. Under construction or renovation are not vacant
4. vacant for 60 consecutive days - theft, vandalism, sprinkler leakage,
glass breakage, and attempted theft are not covered perils
5. all other causes of loss payment is reduced by 15%
◉ Endorsement that modify valuation provision (6). Answer: 1.
Manufacturers selling price (finished stock)
2. market value - stock
3. manufactures consequential loss assumption
4. Functional personal property valuation
5. functional building valuation
6. increased cost of loss and related expenses for green updates
◉ Describe increased cost of construction - green endorsement. Answer:
includes additional cost to repair or replace with green materials
- coinsurance does not apply
- a limit must be selected for green upgrades
- a percentage must be selected (10%, 20%) and the most the policy will
pay is the amount paid for the loss plus deductible times the % selected
◉ coinsurance formula. Answer: did/should x loss
