CIC COMMERCIAL PROPERTY 2022
CERTIFICATION SCRIPT 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
• coverage extension newly acquired locations bI EE.
Answer: can extend business income and EE to appy to proeprty at any
location you acquire as long as coinsurance percentage of 50 % or more is
shown in dec. will not pay more than $100,000 applies even if the named
insured is not in compliance with co insurance
• cost for the loss in value to the undamaged portion of the building under
coverage a (ordinance or law) is included in the building limit in the dec not
the endorsements schedule? true or false?.
Answer: True
• Additional Coverages in CP 00 30 (AICE).
Answer: a. Civil Authority b. Alterations c. Extended Business Income d.
Interruption of Computer Operations
• factors that should be used to determine the apporopriate limit of insurance.
Answer: 1. expected "period of restoration" 2. Business income loss during
"period of restoration" 3. period of time to restore operations to the level of
income that would have existed had no loss occured 4. Any normal
continueing operating expenses that are specifically excluded or limited 5.
add in estimated amount for extra expenses they may incur
• The following is ACV even when attached to a building.
Answer: 1. Awnings or floor coverings 2. certain appliances 3. outdoor
equipment or furniture
• leader locations dependent property.
Answer: the insured relies on to attract customers to the insureds business
• Learning Objective 2B: Property Not Covered Property on BPPCF?.
, Answer: 17 categories of Property Not Covered! a. Money and Securities b.
Animals (not stock) c. Autos held for sales d. Bridges and paved surfaces e.
Contraband or illegal property f. Excavation cost g. Foundations of
structures if found below lowest basement floor h. Land and crops i.
Personal Property while airborne or waterborne j. Docks or Wharves k.
Property covered under another coverage form l. Retaining walls not part of
a building m. Underground pipes and drains n. Electronic Data o. Valuable
Papers p. Vehicles licensed for public road use q. Certain Outdoor property
(Grain, fences, radio or television antennas)
• Correct reporting.
Answer: Even though loss amount is higher than reported amount, as long as
reported amount is accurate and on time the loss will be paid accurately
• Learning Objective 1C: Who has the rights of recovery in the event of a loss
(Review of "Transfer of Rights of Recovery Against Others to Us")?.
Answer: 1. Can waive rights or recovery against anyone....prior to a loss and
in writing. 2. Can waive after a loss only if in writing and the responsible
party is: a. Another Insured b. A business owned or controlled by Named
Insured or a business that owns or controls the named insured c. A tenant of
the named insured. (Wegmans example)
• Ordinance or law coverage endorsement.
Answer: allows the buy back of coverage for Cov A Cov B Cov C coverage
is provided for the cost to comply with the minimum requirements of the
ordinance or law AT THE TIME OF LOSS endorsement includes a post
loss ordinance option. this allows codes that are revised after loss coverage
is also included in the Functional Building Valuation endorsement
• loss conditions- Vacancy.
Answer: defines the terms building and vacant that will be used in this
condition- one for tenant and one for landlord Buildings are not considered
vacant when under construction or renovation
• Agreed Value.
Answer: Optional coverage on CP Dec Page. Expiration date only. Suspends
, coinsurance clause. Can apply to covered property and/or Business Income.
• How are the deductibles by location and multiple deductible form similar?
How do they differ?.
Answer: Both endorsements enable an insured to have separate deductibles
on different locations. In the event of a single occurrence at multiple
locations, the Deductibles by Location endorsement will apply a single,
separate deductible at each location, while the Multiple Deductible Form
endorsement will apply only the largest applicable deductible.
• Basic causes of loss named perils.
Answer: Fire Lightning WC SHAVER Sprinkler Leakage Sinkhole Collapse
Volcanic Action additional coverage: limited coverage for fungus
• Anti-Concurrent Causation Exclusions.
Answer: Attempts to eliminated coverage for loss caused by one of these,
even if the loss resulted from multiple causes (and one of the causes is
Covered) GO NEW WUF a. Ordinance or Law --Ordinance or Law
Coverage CP 04 05 ---Cvg A - Loss to Undamaged Portion of Bldg
(included in Building Limit) ---Cvg B - Demo Cost of Undamaged Portion
of Bldg (can have separate LOIs) ---Cvg C - Increased Cost of Construction
b. Earth Movement c. Governmental Action d. Nuclear Hazard
--Radioactive Contamination CP 10 37 e. Utility Services --Utility Services
- Direct Damage CP 04 17 (Water, Communication, Power w or w/o
Overhead Transmission lines) --Spoilage Coverage CP 04 40 (perisable
stock coverage for Breakdown/Contamination and/or Power Outage)
--Spoilage Coverage CP 04 40 f. War g. Water --DIC Policy, NFIP, Flood
Coverage Endorsement with NFIP --Discharge from Sewer CP 10 38 h.
"Fungus"
• the time element insurance design.
Answer: designed to protect the portion of the financial statement called the
income statement or profit and loss statement
• Mortgageholders.
Answer: Separate rights Separate duties
, • The valuation loss condition under the BPPCF automatically provides
coverage on an actual cash value basis except as otherwise provided True or
False?.
Answer: True
• Deductible application.
Answer: -Per occurrence and after application of coinsurance. -Can be
modified Deductibles by Location CP 03 29 - sep ded at each location
Multiple Deductible Form CP 03 20 - largest applicable ded at multiple
locations Windstorm or Hail Percentage Deductible CP 03 21 - modifies by
specifying either 1%, 2% or 5%. ``
• Components of "Common Policy Dec" IL DS 00 09 08.
Answer: 1. Named Insured 2. Mailing Address 3. Policy Period 4. Biz
Description 5. Premium for Coverage Parts 6. Forms Applicable
• Newly Acquired or Constructed Property.
Answer: 1 of 7 Coverage Extensions. Has 3 key parts: 1) Buildings ...Built
on premises. Similar or warehouse use. Not more than $250K at each
building. " " - Increased Limit CP 04 25 to increase limit. 2) Your BPP ...At
the new locations, not more than $100K. Not property of others. 3) Period of
Coverage ...Earliest of policy expiration, 30 days after acquisition, report
values to insurer
• What is in the insurance agreement portions of the policy.
Answer: 1. Property covered 2. Property not covered 3. Covered causes of
loss 4. Additional coverages 5. Coverage extensions
• Conditional, Special, and Additional Exclusions.
Answer: Conditional: a. Weather Conditions (contributed to excluded COL)
b. Acts or Decisions (Opening of Dam) c. Faulty, inadequate, defective
(design, maintenance, etc) Special: (only under Business Income)
Additional: -Loss or Damage when E & O in production
• Coverage B- Demolition cost covergae (ordinance or law).
Answer: pays for demoltion and debris removal of the undamaged portion of
CERTIFICATION SCRIPT 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
• coverage extension newly acquired locations bI EE.
Answer: can extend business income and EE to appy to proeprty at any
location you acquire as long as coinsurance percentage of 50 % or more is
shown in dec. will not pay more than $100,000 applies even if the named
insured is not in compliance with co insurance
• cost for the loss in value to the undamaged portion of the building under
coverage a (ordinance or law) is included in the building limit in the dec not
the endorsements schedule? true or false?.
Answer: True
• Additional Coverages in CP 00 30 (AICE).
Answer: a. Civil Authority b. Alterations c. Extended Business Income d.
Interruption of Computer Operations
• factors that should be used to determine the apporopriate limit of insurance.
Answer: 1. expected "period of restoration" 2. Business income loss during
"period of restoration" 3. period of time to restore operations to the level of
income that would have existed had no loss occured 4. Any normal
continueing operating expenses that are specifically excluded or limited 5.
add in estimated amount for extra expenses they may incur
• The following is ACV even when attached to a building.
Answer: 1. Awnings or floor coverings 2. certain appliances 3. outdoor
equipment or furniture
• leader locations dependent property.
Answer: the insured relies on to attract customers to the insureds business
• Learning Objective 2B: Property Not Covered Property on BPPCF?.
, Answer: 17 categories of Property Not Covered! a. Money and Securities b.
Animals (not stock) c. Autos held for sales d. Bridges and paved surfaces e.
Contraband or illegal property f. Excavation cost g. Foundations of
structures if found below lowest basement floor h. Land and crops i.
Personal Property while airborne or waterborne j. Docks or Wharves k.
Property covered under another coverage form l. Retaining walls not part of
a building m. Underground pipes and drains n. Electronic Data o. Valuable
Papers p. Vehicles licensed for public road use q. Certain Outdoor property
(Grain, fences, radio or television antennas)
• Correct reporting.
Answer: Even though loss amount is higher than reported amount, as long as
reported amount is accurate and on time the loss will be paid accurately
• Learning Objective 1C: Who has the rights of recovery in the event of a loss
(Review of "Transfer of Rights of Recovery Against Others to Us")?.
Answer: 1. Can waive rights or recovery against anyone....prior to a loss and
in writing. 2. Can waive after a loss only if in writing and the responsible
party is: a. Another Insured b. A business owned or controlled by Named
Insured or a business that owns or controls the named insured c. A tenant of
the named insured. (Wegmans example)
• Ordinance or law coverage endorsement.
Answer: allows the buy back of coverage for Cov A Cov B Cov C coverage
is provided for the cost to comply with the minimum requirements of the
ordinance or law AT THE TIME OF LOSS endorsement includes a post
loss ordinance option. this allows codes that are revised after loss coverage
is also included in the Functional Building Valuation endorsement
• loss conditions- Vacancy.
Answer: defines the terms building and vacant that will be used in this
condition- one for tenant and one for landlord Buildings are not considered
vacant when under construction or renovation
• Agreed Value.
Answer: Optional coverage on CP Dec Page. Expiration date only. Suspends
, coinsurance clause. Can apply to covered property and/or Business Income.
• How are the deductibles by location and multiple deductible form similar?
How do they differ?.
Answer: Both endorsements enable an insured to have separate deductibles
on different locations. In the event of a single occurrence at multiple
locations, the Deductibles by Location endorsement will apply a single,
separate deductible at each location, while the Multiple Deductible Form
endorsement will apply only the largest applicable deductible.
• Basic causes of loss named perils.
Answer: Fire Lightning WC SHAVER Sprinkler Leakage Sinkhole Collapse
Volcanic Action additional coverage: limited coverage for fungus
• Anti-Concurrent Causation Exclusions.
Answer: Attempts to eliminated coverage for loss caused by one of these,
even if the loss resulted from multiple causes (and one of the causes is
Covered) GO NEW WUF a. Ordinance or Law --Ordinance or Law
Coverage CP 04 05 ---Cvg A - Loss to Undamaged Portion of Bldg
(included in Building Limit) ---Cvg B - Demo Cost of Undamaged Portion
of Bldg (can have separate LOIs) ---Cvg C - Increased Cost of Construction
b. Earth Movement c. Governmental Action d. Nuclear Hazard
--Radioactive Contamination CP 10 37 e. Utility Services --Utility Services
- Direct Damage CP 04 17 (Water, Communication, Power w or w/o
Overhead Transmission lines) --Spoilage Coverage CP 04 40 (perisable
stock coverage for Breakdown/Contamination and/or Power Outage)
--Spoilage Coverage CP 04 40 f. War g. Water --DIC Policy, NFIP, Flood
Coverage Endorsement with NFIP --Discharge from Sewer CP 10 38 h.
"Fungus"
• the time element insurance design.
Answer: designed to protect the portion of the financial statement called the
income statement or profit and loss statement
• Mortgageholders.
Answer: Separate rights Separate duties
, • The valuation loss condition under the BPPCF automatically provides
coverage on an actual cash value basis except as otherwise provided True or
False?.
Answer: True
• Deductible application.
Answer: -Per occurrence and after application of coinsurance. -Can be
modified Deductibles by Location CP 03 29 - sep ded at each location
Multiple Deductible Form CP 03 20 - largest applicable ded at multiple
locations Windstorm or Hail Percentage Deductible CP 03 21 - modifies by
specifying either 1%, 2% or 5%. ``
• Components of "Common Policy Dec" IL DS 00 09 08.
Answer: 1. Named Insured 2. Mailing Address 3. Policy Period 4. Biz
Description 5. Premium for Coverage Parts 6. Forms Applicable
• Newly Acquired or Constructed Property.
Answer: 1 of 7 Coverage Extensions. Has 3 key parts: 1) Buildings ...Built
on premises. Similar or warehouse use. Not more than $250K at each
building. " " - Increased Limit CP 04 25 to increase limit. 2) Your BPP ...At
the new locations, not more than $100K. Not property of others. 3) Period of
Coverage ...Earliest of policy expiration, 30 days after acquisition, report
values to insurer
• What is in the insurance agreement portions of the policy.
Answer: 1. Property covered 2. Property not covered 3. Covered causes of
loss 4. Additional coverages 5. Coverage extensions
• Conditional, Special, and Additional Exclusions.
Answer: Conditional: a. Weather Conditions (contributed to excluded COL)
b. Acts or Decisions (Opening of Dam) c. Faulty, inadequate, defective
(design, maintenance, etc) Special: (only under Business Income)
Additional: -Loss or Damage when E & O in production
• Coverage B- Demolition cost covergae (ordinance or law).
Answer: pays for demoltion and debris removal of the undamaged portion of
