CIC- COMMERCIAL PROPERTY EXAM
QUESTIONS WITH CORRECT ANSWERS
endorsement available for electronic data? - Answer-Higher limits endrosement to
increase coverage amount, another way to address this issue is through Electronic data
protection (EDP) Policies
What are the seven coverage extentions - Answer-1. Newly Acquired or Constructed
Property
2. Personal effects and property of others
3. valuable papers and record (other than electronic data)
4. property off premises
5. outdoor property
6. non-owned detached trailers
7. business personal property temporarily portable storage units
difference between coverage extensions and additional coverages? - Answer-coverage
extensions has a requirement that you MUST have at least 80% Coinsurance or a value
reporting form
where do coverage extenstions apply? - Answer-apply to property located in or on the
building described in the dec or in the open (or in a vehicle) within 100 ft of the
described premises
Coverage Extensions- Newly Acquired or constructed property - Answer-3 key parts
1. buildings
2. Your business personal property
3. Period of Coverage
CE- Newly acquired or constructed property (buildings) - Answer-if policy covers
building you may extend the insurance to apply to
a. your new buildings while being built on the described premises
b. building you acquire at locations other than the ones on the dec intended for:
-similar use as the building described on dec or as a warehouse
most paid on this extension is $250,000 per building
CE- Newly acquired buildings (2 personal property) - Answer-cover extends to
newly acquired locations (with exceptions) or for newly constructed or acquired
buildings at described location on dec
-NOT at fairs, tradeshows or exhibitions
-NOT more than $100,000
-NOT property of others in temporary possession
,CE- Newly Acquired property (period of coverage3) - Answer-coverage for newly
acquired property will end when any of the following first occurs:
a. This policy expires
b. 30 days after you acquired or started the construction
c. you report values to us
Coverage Extenstions- Personal Effects and property of others - Answer-you may
extend insurance that applies to your BPP to apply to:
1. personal effects owned by you, your officers, your partners, or members, managers,
employees. this does NOT include loss or damage by theft
2. personal property of others in your CCC
NOT more than $2,500
Coverage extenstions- Valuable Papers and records - Answer-cost to replace or restore
if duplicates do not exist
-NOT if electronic data
-Named perils coverage only
NOT more than $2,500
Such amount is additional insurance
any endorsmeents for CE-Valuable papers and records? - Answer-The higher limits
endorsement or get an inland marine coverage form
Coverage extensions- Property off Premises - Answer-Coverage for
-Temporarily at a location but NOT at location owned/leased/operated
-storage at a leased location, if the lease began after the beginning of the current policy
term
-at any fair trade shows or exhibition
This extension does not apply
-in or on a vehicle
-in the CCC of your salesperson unless at a fair , tradeshow, or exhibit
The most paid under this extension is $10,000
endorsement available: Specified Business Personal Property temporarily away from
premises
CE-Outdoor Property - Answer-limited property limited perils (FLARE)
Not more than $1,000 total ($250 for any one tree, shrub or plant)
Coverages include debris removal expense
what is FLARE? - Answer-named perils:
Fire
Lightning
Aircraft
,Riot or Civil Commotion
Explosion
Endorsments available to Outdoor Property - Answer-1. Additional covered property
-used to insure fences
-definition of covered property includes fences
-subject to the causes of loss form selected (basic, broad, special)
2. Radio or television antennas
3. Trees, Shrubs plants
(loss caused by vehicles can be excluded)
CE-Non-Owned Detached Trailers - Answer-does not need to be owned by you
1. used in business/in CCC/ Contractual Responsibility for loss or damage
2. NOT attached to any vehicle
3. NOT during hitching/unhitching/accidentally unhitched
4. NOT more than $5,000 of coverage
EXCESS COVERAGE
endorsement available: Higher Limits
CE- Business Personal Property Temporarily in Portable Storage units - Answer-
Temporarily stored in a portable storage unit located within 100 feet or building or
structure or 100 ft of the described premises-whichever is greater
-90 days maximum from when storage unit on premises
-not more than $10,000
-Not applicable if otherwise covered and NOT applicable to loss or damage to storage
unit itself
Endorsements available: Higher Limits
Limits of Insurance - Answer-applicable limit of insurance shown in the dec
NOT more than $2500 per sign whether attached or not
certain additional coverages have separate limits of insurance
Endorsements:
Outdoor signs
What items are separate from the limit of insurance shown in the dec? - Answer-1. Fire
department service charge
2. poolutant clean up and removal
3. increased cost of construction
4. electronic data
Deductible - Answer-per occurrence AFTER application of COinsurance
, if more than one item of covered property is damaged and separate limit of insurance
apply, losses are not combined in determining application of deductible- but deductible
only applied once
Endorsements for Deductibles - Answer-Deductibles by location
-can have separate deductibles on diffrent locations
-in the event of a single occurence at multple locations a separate deductible will apply
for the damages at each location
Multiple deductible form
-has separate deductibles for windstorm/hail and theft
windstorm or hail percentage deductible
-specifying either 1%, 2% or %5 ded for windstorm or hail
-ded is calculated separately for each building and the personal property at each
building
Seven Loss Conditions - Answer-1. Abandonment
2. Appraisal
3. Duties in the event of loss or damage
4. Loss payment
5. Recovered Property
6. Vacancy
7. Valuation
Loss conditions - Answer-conditions that apply in addition to the common policy
conditions and the commercial property conditions
Loss conditions- Abandonment - Answer-There can be no abandonment of any property
to us.
Loss conditions-appraisal - Answer-used to determine value of property or amount of
loss
can be requested by insurer or named insured
outlines selection of appraisers process
outlines appraisal process including allocation of costs
may be binding
but coverage can still be denied
loss conditions- duties in the event of loss or damage - Answer-Gives insured duties
and insurer rights
1. notify the police if needed
2. give company prompt notice
3. give description of how where when and why
4. take all responsible steps to try and prevent further damage
5. give complete inventories of damaged and undamaged property
6. permit us to inspect property and look at anything else of our request
7. send a signed sworn proof of loss
QUESTIONS WITH CORRECT ANSWERS
endorsement available for electronic data? - Answer-Higher limits endrosement to
increase coverage amount, another way to address this issue is through Electronic data
protection (EDP) Policies
What are the seven coverage extentions - Answer-1. Newly Acquired or Constructed
Property
2. Personal effects and property of others
3. valuable papers and record (other than electronic data)
4. property off premises
5. outdoor property
6. non-owned detached trailers
7. business personal property temporarily portable storage units
difference between coverage extensions and additional coverages? - Answer-coverage
extensions has a requirement that you MUST have at least 80% Coinsurance or a value
reporting form
where do coverage extenstions apply? - Answer-apply to property located in or on the
building described in the dec or in the open (or in a vehicle) within 100 ft of the
described premises
Coverage Extensions- Newly Acquired or constructed property - Answer-3 key parts
1. buildings
2. Your business personal property
3. Period of Coverage
CE- Newly acquired or constructed property (buildings) - Answer-if policy covers
building you may extend the insurance to apply to
a. your new buildings while being built on the described premises
b. building you acquire at locations other than the ones on the dec intended for:
-similar use as the building described on dec or as a warehouse
most paid on this extension is $250,000 per building
CE- Newly acquired buildings (2 personal property) - Answer-cover extends to
newly acquired locations (with exceptions) or for newly constructed or acquired
buildings at described location on dec
-NOT at fairs, tradeshows or exhibitions
-NOT more than $100,000
-NOT property of others in temporary possession
,CE- Newly Acquired property (period of coverage3) - Answer-coverage for newly
acquired property will end when any of the following first occurs:
a. This policy expires
b. 30 days after you acquired or started the construction
c. you report values to us
Coverage Extenstions- Personal Effects and property of others - Answer-you may
extend insurance that applies to your BPP to apply to:
1. personal effects owned by you, your officers, your partners, or members, managers,
employees. this does NOT include loss or damage by theft
2. personal property of others in your CCC
NOT more than $2,500
Coverage extenstions- Valuable Papers and records - Answer-cost to replace or restore
if duplicates do not exist
-NOT if electronic data
-Named perils coverage only
NOT more than $2,500
Such amount is additional insurance
any endorsmeents for CE-Valuable papers and records? - Answer-The higher limits
endorsement or get an inland marine coverage form
Coverage extensions- Property off Premises - Answer-Coverage for
-Temporarily at a location but NOT at location owned/leased/operated
-storage at a leased location, if the lease began after the beginning of the current policy
term
-at any fair trade shows or exhibition
This extension does not apply
-in or on a vehicle
-in the CCC of your salesperson unless at a fair , tradeshow, or exhibit
The most paid under this extension is $10,000
endorsement available: Specified Business Personal Property temporarily away from
premises
CE-Outdoor Property - Answer-limited property limited perils (FLARE)
Not more than $1,000 total ($250 for any one tree, shrub or plant)
Coverages include debris removal expense
what is FLARE? - Answer-named perils:
Fire
Lightning
Aircraft
,Riot or Civil Commotion
Explosion
Endorsments available to Outdoor Property - Answer-1. Additional covered property
-used to insure fences
-definition of covered property includes fences
-subject to the causes of loss form selected (basic, broad, special)
2. Radio or television antennas
3. Trees, Shrubs plants
(loss caused by vehicles can be excluded)
CE-Non-Owned Detached Trailers - Answer-does not need to be owned by you
1. used in business/in CCC/ Contractual Responsibility for loss or damage
2. NOT attached to any vehicle
3. NOT during hitching/unhitching/accidentally unhitched
4. NOT more than $5,000 of coverage
EXCESS COVERAGE
endorsement available: Higher Limits
CE- Business Personal Property Temporarily in Portable Storage units - Answer-
Temporarily stored in a portable storage unit located within 100 feet or building or
structure or 100 ft of the described premises-whichever is greater
-90 days maximum from when storage unit on premises
-not more than $10,000
-Not applicable if otherwise covered and NOT applicable to loss or damage to storage
unit itself
Endorsements available: Higher Limits
Limits of Insurance - Answer-applicable limit of insurance shown in the dec
NOT more than $2500 per sign whether attached or not
certain additional coverages have separate limits of insurance
Endorsements:
Outdoor signs
What items are separate from the limit of insurance shown in the dec? - Answer-1. Fire
department service charge
2. poolutant clean up and removal
3. increased cost of construction
4. electronic data
Deductible - Answer-per occurrence AFTER application of COinsurance
, if more than one item of covered property is damaged and separate limit of insurance
apply, losses are not combined in determining application of deductible- but deductible
only applied once
Endorsements for Deductibles - Answer-Deductibles by location
-can have separate deductibles on diffrent locations
-in the event of a single occurence at multple locations a separate deductible will apply
for the damages at each location
Multiple deductible form
-has separate deductibles for windstorm/hail and theft
windstorm or hail percentage deductible
-specifying either 1%, 2% or %5 ded for windstorm or hail
-ded is calculated separately for each building and the personal property at each
building
Seven Loss Conditions - Answer-1. Abandonment
2. Appraisal
3. Duties in the event of loss or damage
4. Loss payment
5. Recovered Property
6. Vacancy
7. Valuation
Loss conditions - Answer-conditions that apply in addition to the common policy
conditions and the commercial property conditions
Loss conditions- Abandonment - Answer-There can be no abandonment of any property
to us.
Loss conditions-appraisal - Answer-used to determine value of property or amount of
loss
can be requested by insurer or named insured
outlines selection of appraisers process
outlines appraisal process including allocation of costs
may be binding
but coverage can still be denied
loss conditions- duties in the event of loss or damage - Answer-Gives insured duties
and insurer rights
1. notify the police if needed
2. give company prompt notice
3. give description of how where when and why
4. take all responsible steps to try and prevent further damage
5. give complete inventories of damaged and undamaged property
6. permit us to inspect property and look at anything else of our request
7. send a signed sworn proof of loss
