VA PROPERTY & CASUALTY INSURANCE

EXAM FX, VA PROPERTY & CASUALTY INSURANCE EXAM
LATEST 2024 ACTUAL EXAM
What are the three main adverse financial consequences of property loss exposure?
- ANSWER: 1) Reduction in value of the property

2) Lost income

3) Extra Expense

What are the components of a commercial property coverage part? - ANSWER: 1)
Declarations
2) Commercial Property Conditions
3) BPP Coverage form
4) Cause of loss form
5) Any endorsements

What are the 5 aspects of the Business Personal Property (BPP)? - ANSWER: 1)
Covered Property
2) Property not covered
3) Additional coverages
4) Conditions
5) Optional coverages

What is included as covered property in the BPP? - ANSWER: 1) Building
2) Business personal property
3) Personal property of others

What elements are included in the BPP's definition of building? - ANSWER: The
building is not limited to just a structure with four walls and a roof- it includes these
other things

1) Completed additions
2) Fixtures (personal property permanently attached- including outdoor fixtures)
3) Permanently installed machinery and equipment
4) Personal property owned by you that is used to maintain/service the property,
including fire extinguishing equip., outdoor furniture, floor coverings, and appliances
used for refrigerating, ventilating, cooking, dish washing, etc.
5) If not covered by other insurance-materials/temporary structures being used for
making additions/repairs to the building

The "Building" definition is not limited to just real property. Some personal property
is covered under "Building," instead of "Your Business Personal Property" or
"Personal Property of Others."

, What are some examples of personal property that is considered "Building" because
it is owned by you and is specifically used to maintain or service the building? -
ANSWER: 1) Fire-extinguisher equipment
2) Outdoor furniture
3) Floor coverings
4) Appliances (refrigerator, vent, stove/oven, dishwasher, laundry machine)
5) Lawn mowers
6) Snow blowers
7) Window-washing and floor-cleaning equipment

What is covered under the business personal property section of the BPP? -
ANSWER: May cover all or part of the 7
1) Furniture and fixtures (including trade fixtures)
2) Machinery and equipment
3) "Stock"
4) All other personal property owned by you

5) Labor, materials, services arranged by you on personal property of others
6) Your use interest as a tenant in improvements or betterments
7) Leased personal property that you have contractual responsibility to insure

*1 through 4 are owned by the named insured, and 5-7 involve property owned by
others

Is furniture owned by the landlord and provided in a furnished apartment or room
covered under Building? - ANSWER: NO

Furniture is not used to service or maintain the building, so it is covered under Your
Business Personal Property, not Building

We saw that some of your business personal property (like window-washing
equipment and fridge) is covered under the "Building" definition instead of "Your
Business Personal Property." Now we see that some personal property of others (like
improvements to a building) is covered under "Your Business Personal Property"
instead of "Personal Property of Others." What is the purpose of this? - ANSWER: To
cover incidental loss exposures commonly associated with the main exposure
insured, thereby reducing the need for the insured to buy coverage under an
additional coverage agreement

What is the definition of stock under the Business personal property coverage form?
- ANSWER: Merchandise held in storage or for sale, raw materials and in-process or
finished goods

Also includes supplies used to package or ship stock

The definition of "Your Business Personal Property" includes certain types of fixtures
called trade fixtures. What are trade fixtures? - ANSWER: Fixtures and equipment