CIC COMMERCIAL PROPERTY ACTUAL EXAM
ALL 150 QUESTIONS AND WELL ELABORATED
ANSWERS TOP RATED VERSION FOR 2024-
2025 ALREADY A GRADED WITH EXPERT
FEEDBACK|NEW AND REVISED
(T/F) - According to the Common Policy Conditions, any Named Insured is authorized to cancel
the policy or make changes, with the consent of the insurer. - ANSWER>>>>False - Must be the
first named insured.
(T/F) The insurance company is authorized to examine the insured's books and records even
after the policy period has concluded. - ANSWER>>>>True - The insurance company has the
right for up to 3 years after the end of the policy period.
(T/F) The insurance company is required to conduct safety inspections and confirm that the
insured is adhering to all laws, regulations, and codes - ANSWER>>>>False - Insurance
companies have to right to inspect or to not inspect. The inspection only look for insurability,
not safety.
(T/F) Any return premiums will be divided evenly among all Named Insureds. -
ANSWER>>>>False - Returned premiums will go only to the first named insured.
(T/F) The rights and duties outlined in the insurance policy cannot be transferred to another
party, except in the case of the death of an individual named insured. - ANSWER>>>>True -
Rights cannot be transferred without the consent of the insurance company, expect in the case
of death to the individually named first named insured.
If the Named Insured has a building valued at $1,000,000 and 80% is indicated on the
Declarations for coinsurance, what is the minimum limit of insurance needed to avoid a
coinsurance penalty? - ANSWER>>>>800,000 --- (1,000,000 x .8 = 800,000)
The Named Insured from the scenario above has a $600,000 limit of insurance and suffers a
property loss with damage totaling $100,000. If the building is valued at $1,000,000 at the time
of the loss and the policy has a $10,000 deductible, how much will the Named Insured receive
in the settlement? - ANSWER>>>>Coinsurance Formula = (Did / Should) x Loss - deductible =
payout.
(600,,000) = .75
.75 x 100,000 = 75,000
75,000 - 10,000 = 65,000
Total Payout = 65,000
, (Conditions) Define ---"Concealment, Misrepresentation, or Fraud" - ANSWER>>>>Coverage
part is void if the insured conceals or does not accurately represent information pertaining to
the coverage or to a claim.
(Conditions) Define --- "Control of Property" - ANSWER>>>>Actions of others outside the
control of the Named Insured will not effect the policy.
(Conditions) Define --- "Insurance Under Two or More Coverages" - ANSWER>>>>The policy will
not pay more than the actual loss amount even if the loss is covered in more than one area of
the policy.
(Conditions) Define --- "Legal Action Against Us" - ANSWER>>>>A lawsuit cannot be brought
against the insurer until all terms of the coverage part have been meet and legal action must be
brought within two years.
(Conditions) Define --- "Liberalization" - ANSWER>>>>Newly insured policies will benefit from
broadened coverage as long as no additional premium applies.
(Conditions) --- "No Benefit to Bailee" - ANSWER>>>>No person having custody of Covered
Property (other than the named insured) will benefit from this policy.
(Conditions) --- "Other Insurance" - ANSWER>>>>Other insurance covering the same property
will the same terms conditions, etc., will be paid on a pro-rata basis. Other insurance with
different terms, conditions, etc., will be paid on an excess basis.
(Conditions) --- "Policy Period and Territory" - ANSWER>>>>Coverage only applies during the
policy period and within the US, its territories ad possessions, Puerto Rico, and Canada.
(Conditions) --- "Transfer of Rights of Recovery Against Others to Us" - ANSWER>>>>The Named
insured can waive the rights of recovery (in writing) to anyone prior to a loss and anyone to
certain parties after the loss.
After the loss:
-Another insured
-A biz owned or controlled by the NI
-A biz that owns or controls the NI
A tenet of the NI
(Short ANSWER>>) Describe how and when a Named Insured can waive their rights of recovery
against another party. - ANSWER>>>>The Named insured can waive the rights of recovery (in
writing) to anyone prior to a loss and anyone to certain parties after the loss.
After the loss:
ALL 150 QUESTIONS AND WELL ELABORATED
ANSWERS TOP RATED VERSION FOR 2024-
2025 ALREADY A GRADED WITH EXPERT
FEEDBACK|NEW AND REVISED
(T/F) - According to the Common Policy Conditions, any Named Insured is authorized to cancel
the policy or make changes, with the consent of the insurer. - ANSWER>>>>False - Must be the
first named insured.
(T/F) The insurance company is authorized to examine the insured's books and records even
after the policy period has concluded. - ANSWER>>>>True - The insurance company has the
right for up to 3 years after the end of the policy period.
(T/F) The insurance company is required to conduct safety inspections and confirm that the
insured is adhering to all laws, regulations, and codes - ANSWER>>>>False - Insurance
companies have to right to inspect or to not inspect. The inspection only look for insurability,
not safety.
(T/F) Any return premiums will be divided evenly among all Named Insureds. -
ANSWER>>>>False - Returned premiums will go only to the first named insured.
(T/F) The rights and duties outlined in the insurance policy cannot be transferred to another
party, except in the case of the death of an individual named insured. - ANSWER>>>>True -
Rights cannot be transferred without the consent of the insurance company, expect in the case
of death to the individually named first named insured.
If the Named Insured has a building valued at $1,000,000 and 80% is indicated on the
Declarations for coinsurance, what is the minimum limit of insurance needed to avoid a
coinsurance penalty? - ANSWER>>>>800,000 --- (1,000,000 x .8 = 800,000)
The Named Insured from the scenario above has a $600,000 limit of insurance and suffers a
property loss with damage totaling $100,000. If the building is valued at $1,000,000 at the time
of the loss and the policy has a $10,000 deductible, how much will the Named Insured receive
in the settlement? - ANSWER>>>>Coinsurance Formula = (Did / Should) x Loss - deductible =
payout.
(600,,000) = .75
.75 x 100,000 = 75,000
75,000 - 10,000 = 65,000
Total Payout = 65,000
, (Conditions) Define ---"Concealment, Misrepresentation, or Fraud" - ANSWER>>>>Coverage
part is void if the insured conceals or does not accurately represent information pertaining to
the coverage or to a claim.
(Conditions) Define --- "Control of Property" - ANSWER>>>>Actions of others outside the
control of the Named Insured will not effect the policy.
(Conditions) Define --- "Insurance Under Two or More Coverages" - ANSWER>>>>The policy will
not pay more than the actual loss amount even if the loss is covered in more than one area of
the policy.
(Conditions) Define --- "Legal Action Against Us" - ANSWER>>>>A lawsuit cannot be brought
against the insurer until all terms of the coverage part have been meet and legal action must be
brought within two years.
(Conditions) Define --- "Liberalization" - ANSWER>>>>Newly insured policies will benefit from
broadened coverage as long as no additional premium applies.
(Conditions) --- "No Benefit to Bailee" - ANSWER>>>>No person having custody of Covered
Property (other than the named insured) will benefit from this policy.
(Conditions) --- "Other Insurance" - ANSWER>>>>Other insurance covering the same property
will the same terms conditions, etc., will be paid on a pro-rata basis. Other insurance with
different terms, conditions, etc., will be paid on an excess basis.
(Conditions) --- "Policy Period and Territory" - ANSWER>>>>Coverage only applies during the
policy period and within the US, its territories ad possessions, Puerto Rico, and Canada.
(Conditions) --- "Transfer of Rights of Recovery Against Others to Us" - ANSWER>>>>The Named
insured can waive the rights of recovery (in writing) to anyone prior to a loss and anyone to
certain parties after the loss.
After the loss:
-Another insured
-A biz owned or controlled by the NI
-A biz that owns or controls the NI
A tenet of the NI
(Short ANSWER>>) Describe how and when a Named Insured can waive their rights of recovery
against another party. - ANSWER>>>>The Named insured can waive the rights of recovery (in
writing) to anyone prior to a loss and anyone to certain parties after the loss.
After the loss:
