CIC PROPERTY EXAM QUESTIONS
WITH COMPLETE SOLUTIONS
Peak Season Limit of Insurance (CP 12 30) - Answer-Designed for a firm that has
predictable seasonal fluctuations in personal property values. Provides increased
amounts of insurance during peak season.
Loss Payable Provisions (CP 12 18) - Answer-Allows the building owner to be added as
a loss payee
Additional Insured - Building Owner (CP 12 19) - Answer-Allows the building owner to
be added as an additional insured.
Vacancy Permit (CP 04 50) - Answer-Eliminates the vacancy loss condition
Vacancy Changes (CP 04 60) - Answer-Allows the 31% rented criteria to be reduced to
as low as 10%
Increase in Rebuilding Expenses Following Disaster (Additional Expense Coverage on
Annual Aggregate Basis) CP 04 09 - Answer-Provides an additional amount of
insurance for rebuilding when the costs of labor and/or materials increases as a result of
a disaster and the total cost to repair or replace exceeds the limit of insurance.
Causes of Loss - Basic Form - Answer-Fire; Lightning; Explosion; Windstorm or Hail;
Smoke; Aircraft & Vehicles; Riot or Civil Commotion; Vandalism; Sprinkler Leakage;
Sinkhole Collapse; Volcanic Action
Causes of Loss - Broad Form - Answer-All those in basic form plus Falling Objects;
Weight of Snow, Ice or Sleet; Water Damage
Causes of Loss - Special Form - Answer-Provides coverage for direct physical loss to
covered property unless the loss is excluded or limited in the policy.
Builder's Risk - Purpose - Answer-to provide coverage for buildings and structures
during the course of construction/renovations
Builder's Risk - Excluded perils - Answer-Civil Authority; Earth movement or Volcanic
eruption (doesn't apply to property in transit); Flood (doesn't apply to property in transit);
Fungus; Nuclear Hazard; Ordinance or Law; Penalties; Sewer Backup and Water
Backup; War & Military Action; Defects, Errors or Omissions; Loss of Use; Mechanical
Breakdown; Contamination or Deterioration; Criminal, Fraudulent, Dishonest, or Illegal
Acts; Electrical Currents; Missing Property; Pollutants; Temperature/Humidity; Voluntary
Parting; Wear & Tear
, Builder's Risk - Property Not Covered - Answer-Aircraft or Watercraft; Contraband;
Land; Money & Securities; Standing Building or Structure; Vehicles
Contractor's Equipment - Purpose - Answer-Designed to provide very broad coverage
for equipment, machinery, and tools that can be at various locations, such as the
contractor's own premises, job sites, temporary locations, and in transit.
Contractor's Equipment - Excluded Perils - Answer-Civil Authority; Nuclear Hazard; War
& Military Action; Contamination or Deterioration; Criminal, Fraudulent, Dishonest, or
Illegal Acts; Loss of Use; Mechanical Breakdown; Missing Property; Pollutants;
Puncture, Blowout, and Road Damage; Temperature/Humidity; Voluntary Parting; Wear
& Tear; Weight of Load
Contractor's Equipment - Property Not Covered - Answer-Aircraft or Watercraft;
Contraband; Leased or Rented Property; Loaned Property; Underground Mining
Operations; Vehicles; Waterborne Property
Installation Floater - Purpose - Answer-To provide coverage for any types of materials
and supplies that will be installed into building/structure
Installation Floater - Excluded Perils - Answer-Civil Authority; Earth Movement or
Volcanic Action (doesn't apply to property in transit); Flood (doesn't apply to property in
transit); Fungus; Nuclear Hazard; Ordinance or Law; Penalties; Sewer Backup and
Water Below the Surface; War & Military Action; Contamination or Deterioration;
Criminal, Fraudulent, Dishonest, or Illegal Acts; Defects, Errors or Omissions; Electrical
Currents; Explosion, Rupture, or Bursting; Loss of use; Mechanical Breakdown; Missing
property; Pollutants; Temperature/Humidity; Voluntary Parting; Wear & Tear
Installation Floater - Property Not Covered - Answer-Airborne Property; Buildings,
Structures, or Land; Contraband; Machinery, Tools or Equipment; Money & Securities;
Trees, Shrubs, or Plants; Waterborne Property
Transportation Policy - Purpose - Answer-Provide first party coverage for the insured for
the shipment of the insured's goods by various modes of transportation
Transportation Policy - Property Not Covered - Answer-Art, Antiques, and Fur; Carrier
for Hire; Contraband; Exports and Imports; Jewelry, Stones, and Metals; Lease
Agreement; Live Animals; Mail; Money & Securities; Samples; Storage
Transportation Policy - Excluded Perils - Answer-Civil Authority; Nuclear Hazard;
Contamination or Deterioration; Criminal, Fraudulent, Dishonest, or Illegal Acts; Loss of
Use; Missing Property; Pollutants; Spoilage; Temperature/Humidity; Voluntary Parting;
Wear & Tear
WITH COMPLETE SOLUTIONS
Peak Season Limit of Insurance (CP 12 30) - Answer-Designed for a firm that has
predictable seasonal fluctuations in personal property values. Provides increased
amounts of insurance during peak season.
Loss Payable Provisions (CP 12 18) - Answer-Allows the building owner to be added as
a loss payee
Additional Insured - Building Owner (CP 12 19) - Answer-Allows the building owner to
be added as an additional insured.
Vacancy Permit (CP 04 50) - Answer-Eliminates the vacancy loss condition
Vacancy Changes (CP 04 60) - Answer-Allows the 31% rented criteria to be reduced to
as low as 10%
Increase in Rebuilding Expenses Following Disaster (Additional Expense Coverage on
Annual Aggregate Basis) CP 04 09 - Answer-Provides an additional amount of
insurance for rebuilding when the costs of labor and/or materials increases as a result of
a disaster and the total cost to repair or replace exceeds the limit of insurance.
Causes of Loss - Basic Form - Answer-Fire; Lightning; Explosion; Windstorm or Hail;
Smoke; Aircraft & Vehicles; Riot or Civil Commotion; Vandalism; Sprinkler Leakage;
Sinkhole Collapse; Volcanic Action
Causes of Loss - Broad Form - Answer-All those in basic form plus Falling Objects;
Weight of Snow, Ice or Sleet; Water Damage
Causes of Loss - Special Form - Answer-Provides coverage for direct physical loss to
covered property unless the loss is excluded or limited in the policy.
Builder's Risk - Purpose - Answer-to provide coverage for buildings and structures
during the course of construction/renovations
Builder's Risk - Excluded perils - Answer-Civil Authority; Earth movement or Volcanic
eruption (doesn't apply to property in transit); Flood (doesn't apply to property in transit);
Fungus; Nuclear Hazard; Ordinance or Law; Penalties; Sewer Backup and Water
Backup; War & Military Action; Defects, Errors or Omissions; Loss of Use; Mechanical
Breakdown; Contamination or Deterioration; Criminal, Fraudulent, Dishonest, or Illegal
Acts; Electrical Currents; Missing Property; Pollutants; Temperature/Humidity; Voluntary
Parting; Wear & Tear
, Builder's Risk - Property Not Covered - Answer-Aircraft or Watercraft; Contraband;
Land; Money & Securities; Standing Building or Structure; Vehicles
Contractor's Equipment - Purpose - Answer-Designed to provide very broad coverage
for equipment, machinery, and tools that can be at various locations, such as the
contractor's own premises, job sites, temporary locations, and in transit.
Contractor's Equipment - Excluded Perils - Answer-Civil Authority; Nuclear Hazard; War
& Military Action; Contamination or Deterioration; Criminal, Fraudulent, Dishonest, or
Illegal Acts; Loss of Use; Mechanical Breakdown; Missing Property; Pollutants;
Puncture, Blowout, and Road Damage; Temperature/Humidity; Voluntary Parting; Wear
& Tear; Weight of Load
Contractor's Equipment - Property Not Covered - Answer-Aircraft or Watercraft;
Contraband; Leased or Rented Property; Loaned Property; Underground Mining
Operations; Vehicles; Waterborne Property
Installation Floater - Purpose - Answer-To provide coverage for any types of materials
and supplies that will be installed into building/structure
Installation Floater - Excluded Perils - Answer-Civil Authority; Earth Movement or
Volcanic Action (doesn't apply to property in transit); Flood (doesn't apply to property in
transit); Fungus; Nuclear Hazard; Ordinance or Law; Penalties; Sewer Backup and
Water Below the Surface; War & Military Action; Contamination or Deterioration;
Criminal, Fraudulent, Dishonest, or Illegal Acts; Defects, Errors or Omissions; Electrical
Currents; Explosion, Rupture, or Bursting; Loss of use; Mechanical Breakdown; Missing
property; Pollutants; Temperature/Humidity; Voluntary Parting; Wear & Tear
Installation Floater - Property Not Covered - Answer-Airborne Property; Buildings,
Structures, or Land; Contraband; Machinery, Tools or Equipment; Money & Securities;
Trees, Shrubs, or Plants; Waterborne Property
Transportation Policy - Purpose - Answer-Provide first party coverage for the insured for
the shipment of the insured's goods by various modes of transportation
Transportation Policy - Property Not Covered - Answer-Art, Antiques, and Fur; Carrier
for Hire; Contraband; Exports and Imports; Jewelry, Stones, and Metals; Lease
Agreement; Live Animals; Mail; Money & Securities; Samples; Storage
Transportation Policy - Excluded Perils - Answer-Civil Authority; Nuclear Hazard;
Contamination or Deterioration; Criminal, Fraudulent, Dishonest, or Illegal Acts; Loss of
Use; Missing Property; Pollutants; Spoilage; Temperature/Humidity; Voluntary Parting;
Wear & Tear
