CIC COMMERCIAL PROPERTY 2022
COMPREHENSIVE STUDY GUIDE 2026 FULL
QUESTIONS AND SOLUTIONS GRADED A+
• Improvements and Betterments.
Answer: unamortized portion of the value of the tenant's improvements and
betterment that the insured has made at his/her own expense
• Name the 7 types of business personal property:.
Answer: fixtures, machinery, stock, contents, labor/services/materials, TIBs,
leased property which the insured has a contractual responsibility to insure
• CP Definitions: Use Value to a Tenant of Improvements and Betterments.
Answer: Your Business Personal Property
• Maximum Period of Indemnity.
Answer: coverage for no longer than 120 days; suspends coinsurance
• Property Not Covered: Autos held for sale.
Answer: Buy Back: Auto Dealers Coverage Form CA 00 25
• CP Definitions: Buildings and structures; Completed additions.
Answer: Building
• Business and Personal Property Coverage Form: 3 Categories of Covered
Property.
Answer: a. Building, b. Your Business Personal Property, c. Personal
Property of Others
• Non-Owned Trailers Coverage Extension.
Answer: $5,000; must CCC, contractual responsibility, un-hitched
• Outdoor Signs—CP 14 40 06 07.
Answer: This endorsement can be used to insure outdoor signs for additional
limits by replacing the $2,500 limit on signs in the Building And Personal
Property Coverage Form. Limits must be scheduled on the endorsement.
, This endorsement is subject to the Causes Of Loss form selected (Basic,
Broad, or Special).
• Higher Limits CP 04 08 10 12.
Answer: The higher limits endorsement can be used as an alternative to
starting a higher limit in the Declarations. This endorsement replaces the
stated limit amount and can be listed on a schedule to apply to various
coverages. This endorsement does not change the way the policy provides
coverage.
• Functional Personal Property Valuation (Other Than Stock) CP 04 39 10 90.
Answer: This endorsement allows the Named Insured to replace personal
property with the most closely equivalent property available. Coinsurance
does not apply.
• burglary and robbery protective safeguard.
Answer: can suspend coverage for theft if conditions are not met
• On a value reporting policy, what happens if an insured under-reports prior
to a loss.
Answer: the coinsurance penalty will apply (did will be the value the insured
reported / should would be the value the insured SHOULD have reported)
• 5 Rights & Duties of 1st Named Insured.
Answer: 1. Authorized to Cancel 2. Receive Notice of Cancellation 3. Make
Changes with Insurer Consent 4. Responsible for Payments of all Premium
5. Payee for Return Premium
• Define Business Income:.
Answer: NET INCOME that the business would have made if it wasn't for
the loss, and CONTINUING normal operating EXPENSES, including
payroll
• What are the seven COVERAGE EXTENSIONS:.
Answer: NNPOOV: Newly Acquired, Non-Owned Trailers, Personal
Effects/PPO, Pods, Outdoor Property, Off-Premises, Valuable Records
, • Multiple Deductible Form CP 03 20 04 18.
Answer: This endorsement also modifies the Deductible provision to enable
an insured to have separate deductibles on different locations. The
endorsement also enables the insured to have separate deductibles on
Windstorm or Hail and Theft at different locations, by indicating the
appropriate symbol on the Schedule.
• CP Definitions: Permanently Installed: Machinery and Equipment.
Answer: Building
• Functional Building Valuation CP 04 38 09 17.
Answer: This endorsement is designed to insure buildings such as: • an older
building whose architectural style has become obsolete or simply
unnecessary to the Named Insured's current use • buildings the Named
Insured would not or could not replace as-is.
• Property Not Covered: Animals, unless boarded or "your stock".
Answer: Buy Back: Additional Covered Property CP 14 10 or Animal
Mortality Coverage Form IH 00 69
• Increase In Rebuilding Expenses Following Disaster (Additional Expense
Coverage On Annual Aggregate Basis) CP 04 09 10 12.
Answer: During a disaster, claims processing can become delayed due to the
surge of claims. Response times can become erratic, ranging anywhere from
two days to two weeks if not longer. Contractors and repair services can
become unavailable for lengthy periods of time as well. In addition to the
length of time it may take for repairs to begin, the cost of repairs can
increase due to expediting services and materials, along with other factors.
• Property Not Covered: Electronic data (except stock of prepackaged
software or electronic data which is integrated into the building operational
systems).
Answer: Buy Back: E-Commerce CP 04 30 (Limited) or Inland Marine
Coverage Forms
• Preservation of Property Additional Coverage:.
COMPREHENSIVE STUDY GUIDE 2026 FULL
QUESTIONS AND SOLUTIONS GRADED A+
• Improvements and Betterments.
Answer: unamortized portion of the value of the tenant's improvements and
betterment that the insured has made at his/her own expense
• Name the 7 types of business personal property:.
Answer: fixtures, machinery, stock, contents, labor/services/materials, TIBs,
leased property which the insured has a contractual responsibility to insure
• CP Definitions: Use Value to a Tenant of Improvements and Betterments.
Answer: Your Business Personal Property
• Maximum Period of Indemnity.
Answer: coverage for no longer than 120 days; suspends coinsurance
• Property Not Covered: Autos held for sale.
Answer: Buy Back: Auto Dealers Coverage Form CA 00 25
• CP Definitions: Buildings and structures; Completed additions.
Answer: Building
• Business and Personal Property Coverage Form: 3 Categories of Covered
Property.
Answer: a. Building, b. Your Business Personal Property, c. Personal
Property of Others
• Non-Owned Trailers Coverage Extension.
Answer: $5,000; must CCC, contractual responsibility, un-hitched
• Outdoor Signs—CP 14 40 06 07.
Answer: This endorsement can be used to insure outdoor signs for additional
limits by replacing the $2,500 limit on signs in the Building And Personal
Property Coverage Form. Limits must be scheduled on the endorsement.
, This endorsement is subject to the Causes Of Loss form selected (Basic,
Broad, or Special).
• Higher Limits CP 04 08 10 12.
Answer: The higher limits endorsement can be used as an alternative to
starting a higher limit in the Declarations. This endorsement replaces the
stated limit amount and can be listed on a schedule to apply to various
coverages. This endorsement does not change the way the policy provides
coverage.
• Functional Personal Property Valuation (Other Than Stock) CP 04 39 10 90.
Answer: This endorsement allows the Named Insured to replace personal
property with the most closely equivalent property available. Coinsurance
does not apply.
• burglary and robbery protective safeguard.
Answer: can suspend coverage for theft if conditions are not met
• On a value reporting policy, what happens if an insured under-reports prior
to a loss.
Answer: the coinsurance penalty will apply (did will be the value the insured
reported / should would be the value the insured SHOULD have reported)
• 5 Rights & Duties of 1st Named Insured.
Answer: 1. Authorized to Cancel 2. Receive Notice of Cancellation 3. Make
Changes with Insurer Consent 4. Responsible for Payments of all Premium
5. Payee for Return Premium
• Define Business Income:.
Answer: NET INCOME that the business would have made if it wasn't for
the loss, and CONTINUING normal operating EXPENSES, including
payroll
• What are the seven COVERAGE EXTENSIONS:.
Answer: NNPOOV: Newly Acquired, Non-Owned Trailers, Personal
Effects/PPO, Pods, Outdoor Property, Off-Premises, Valuable Records
, • Multiple Deductible Form CP 03 20 04 18.
Answer: This endorsement also modifies the Deductible provision to enable
an insured to have separate deductibles on different locations. The
endorsement also enables the insured to have separate deductibles on
Windstorm or Hail and Theft at different locations, by indicating the
appropriate symbol on the Schedule.
• CP Definitions: Permanently Installed: Machinery and Equipment.
Answer: Building
• Functional Building Valuation CP 04 38 09 17.
Answer: This endorsement is designed to insure buildings such as: • an older
building whose architectural style has become obsolete or simply
unnecessary to the Named Insured's current use • buildings the Named
Insured would not or could not replace as-is.
• Property Not Covered: Animals, unless boarded or "your stock".
Answer: Buy Back: Additional Covered Property CP 14 10 or Animal
Mortality Coverage Form IH 00 69
• Increase In Rebuilding Expenses Following Disaster (Additional Expense
Coverage On Annual Aggregate Basis) CP 04 09 10 12.
Answer: During a disaster, claims processing can become delayed due to the
surge of claims. Response times can become erratic, ranging anywhere from
two days to two weeks if not longer. Contractors and repair services can
become unavailable for lengthy periods of time as well. In addition to the
length of time it may take for repairs to begin, the cost of repairs can
increase due to expediting services and materials, along with other factors.
• Property Not Covered: Electronic data (except stock of prepackaged
software or electronic data which is integrated into the building operational
systems).
Answer: Buy Back: E-Commerce CP 04 30 (Limited) or Inland Marine
Coverage Forms
• Preservation of Property Additional Coverage:.
