PRC 112 Ch. 1 UPDATED ACTUAL Questions and CORRECT Answers
Internet of Things (IoT) A network of objects that transmit data to computers.
Net income The difference between revenues (such as money received for goods or
services) and expenses (such as money paid for merchandise, rent, and
insurance).
Business income worksheet A worksheet for calculating the amount of insurance necessary to comply with
the Coinsurance condition of business income insurance forms, for reporting
business income values to the insurer, or for providing underwriters with
information they need to evaluate an organization's business income loss
exposure.
Real property (realty) Tangible property consisting of land, all structures permanently attached to the
land, and whatever is growing on the land.
Personal property All tangible or intangible property that is not real property.
Commercial property coverage part Commercial package policy (CPP) coverage component that provides a broad
range of coverages to 'middle-market' or larger firms to insure buildings and
business personal property.
Commercial package policy (CPP) Policy that covers two or more lines of business by combining ISO's
commercial lines coverage parts.
Monoline policy Policy that covers only one line of business.
Package modification factors Factors that are applied to the regular policy premiums for certain coverage
parts of a CPP that includes both property and liability coverages, resulting in
premium discounts for those coverage parts.
Commercial property declarations page A required commercial property coverage part component that provides basic
information about the policyholder and the insurance provided.
Commercial property coverage form A commercial property coverage part component that can be any of several
commercial property forms containing an insuring agreement and related
provisions.
, Causes of loss form A required component of the commercial property coverage part that
specifies perils covered. (Basic, Broad, or Special) Allows the insured to select,
or the underwriter to offer, a range of covered perils.
Commercial Property Conditions A required component of the commercial property coverage part that contains
conditions applicable to all commercial property coverage forms.
Special limits of liability Internal dollar limits on certain specified classes of property that apply
regardless of the overall policy limit.
Coinsurance An insurance-to-value provision in many property insurance policies providing
that if the property is underinsured, the amount that an insurer will pay for a
covered loss is reduced.
Anti-concurrent causation wording Wording in an insurance policy that eliminates coverage for a loss that was
caused by more than one peril if one or more of the perils is subject to a policy
exclusion.
Open perils coverage A type of policy or coverage that insures against direct physical loss unless the
loss is excluded or limited by the policy.
Risk consultant Someone who can provide a customized blend of comprehensive risk
management strategies and necessary insurance coverage.
Building and Personal Property Coverage Form (BPP) Provides coverage for buildings, business personal property, and the personal
property of others. Also provides additional coverages and coverage
extensions for debris removal, the preservation of property, fire department
service charges, pollutant cleanup and removal, increases cost of construction,
electronic data, new property, personal effects, property of others, valuable
records, and nonowned detached trailers.
BIC forms Provide business income insurance (also referred to as business interruption
insurance) to cover the reduction in an organization's income that results when
its operations are interrupted by damage that's covered under its commercial
property policy.
Estimated maximum loss (EML) Determining how much BIC coverage a business should purchase requires
calculating the business's _________of business income. To do this, insurers
typically use their own, or an ISO, business income worksheet.
Limits of Insurance Determining whether an organization is underinsured requires understanding
Loss Conditions these sections of the BIC forms which help determine how much the BIC forms
Additional Condition (Coinsurance) pay for specific losses and the appropriate amount of coverage commercial
operations should purchase.
Endorsements Available to tailor commercial property coverage to meet the specific needs of
insured (or to eliminate coverage for certain exposures that underwriters aren't
willing to insure).
Risk assessments Conducted by insurance professionals to better identify which endorsements
best customize property coverage for their clients.
Internet of Things (IoT) A network of objects that transmit data to computers.
Net income The difference between revenues (such as money received for goods or
services) and expenses (such as money paid for merchandise, rent, and
insurance).
Business income worksheet A worksheet for calculating the amount of insurance necessary to comply with
the Coinsurance condition of business income insurance forms, for reporting
business income values to the insurer, or for providing underwriters with
information they need to evaluate an organization's business income loss
exposure.
Real property (realty) Tangible property consisting of land, all structures permanently attached to the
land, and whatever is growing on the land.
Personal property All tangible or intangible property that is not real property.
Commercial property coverage part Commercial package policy (CPP) coverage component that provides a broad
range of coverages to 'middle-market' or larger firms to insure buildings and
business personal property.
Commercial package policy (CPP) Policy that covers two or more lines of business by combining ISO's
commercial lines coverage parts.
Monoline policy Policy that covers only one line of business.
Package modification factors Factors that are applied to the regular policy premiums for certain coverage
parts of a CPP that includes both property and liability coverages, resulting in
premium discounts for those coverage parts.
Commercial property declarations page A required commercial property coverage part component that provides basic
information about the policyholder and the insurance provided.
Commercial property coverage form A commercial property coverage part component that can be any of several
commercial property forms containing an insuring agreement and related
provisions.
, Causes of loss form A required component of the commercial property coverage part that
specifies perils covered. (Basic, Broad, or Special) Allows the insured to select,
or the underwriter to offer, a range of covered perils.
Commercial Property Conditions A required component of the commercial property coverage part that contains
conditions applicable to all commercial property coverage forms.
Special limits of liability Internal dollar limits on certain specified classes of property that apply
regardless of the overall policy limit.
Coinsurance An insurance-to-value provision in many property insurance policies providing
that if the property is underinsured, the amount that an insurer will pay for a
covered loss is reduced.
Anti-concurrent causation wording Wording in an insurance policy that eliminates coverage for a loss that was
caused by more than one peril if one or more of the perils is subject to a policy
exclusion.
Open perils coverage A type of policy or coverage that insures against direct physical loss unless the
loss is excluded or limited by the policy.
Risk consultant Someone who can provide a customized blend of comprehensive risk
management strategies and necessary insurance coverage.
Building and Personal Property Coverage Form (BPP) Provides coverage for buildings, business personal property, and the personal
property of others. Also provides additional coverages and coverage
extensions for debris removal, the preservation of property, fire department
service charges, pollutant cleanup and removal, increases cost of construction,
electronic data, new property, personal effects, property of others, valuable
records, and nonowned detached trailers.
BIC forms Provide business income insurance (also referred to as business interruption
insurance) to cover the reduction in an organization's income that results when
its operations are interrupted by damage that's covered under its commercial
property policy.
Estimated maximum loss (EML) Determining how much BIC coverage a business should purchase requires
calculating the business's _________of business income. To do this, insurers
typically use their own, or an ISO, business income worksheet.
Limits of Insurance Determining whether an organization is underinsured requires understanding
Loss Conditions these sections of the BIC forms which help determine how much the BIC forms
Additional Condition (Coinsurance) pay for specific losses and the appropriate amount of coverage commercial
operations should purchase.
Endorsements Available to tailor commercial property coverage to meet the specific needs of
insured (or to eliminate coverage for certain exposures that underwriters aren't
willing to insure).
Risk assessments Conducted by insurance professionals to better identify which endorsements
best customize property coverage for their clients.
