CIC COMMERCIAL MULTI-LINE EXAM 2 SCRIPT 2025/2026
QUESTIONS WITH ANSWERS GRADED A+
✔✔Those with insurable interests in the building or structure under construction can be
listed as named insured's such as: - ✔✔1. Project Owners
2.General Contractor and subcontractors of all levels
3.Architects and/or engineers, Mortgagee and other lenders, suppliers, construction
manager
✔✔Advantages to having all insurable interest under a single policy - ✔✔1. Greater
efficiency including avoidance of litigation
2. Fewer coverage disputes
3. All parties included would be entitled to a copy of the policy
4. All insured parties have direct policy rights
5. Will usually limit any subrogation efforts by an insurer
✔✔Disadvantages of having all insurable interests on a single policy - ✔✔1. The claim
payment may be made to all insureds
2.Misrepresentation, concealment or fraud by any "insured" may void coverage, unless
there is a provision that protects innocent insureds
✔✔Exposures to loss include - ✔✔-Building or structure under construction
-Materials and supplies at the job site
-Materials and supplies NOT at job site BUT at temporary storage locations
-Temporary structures
-Materials and supplies of others in the care, custody or control of the insureds
-Property in transit
-Debris Removal
-Soft Costs
-Business income and/or rental value
✔✔Builders Risk VS Inland Marine - ✔✔BR:
-Property in transit has limited coverage
-Temporary storage locations off premises have small limits
-Collapse during construction is limited
-Theft of materials is not covered
INLM:
-No Standard Policy
-Broader Covered Property
-Broader Covered Perils
-usually includes transit coverage and temporary storage locations
,✔✔Completed Value Basis - ✔✔1. Coverage applies at the full Limit of Insurance
2. Premium charge will reflect the ever-changing values - % of it
3. No other report is needed
4.Premium will be adjusted once the project is completed to reflect the actual completed
value of the project
5. Often include a 100% coinsurance clause
6. Most common way to write a single location project
✔✔Reporting Form Basis - ✔✔1. Coverage applies at the full limit of insurance - may
have a specific sub-limit that applies per location
2.Premium charged initially is a deposit - premium will be charged based on the values
reported
3. Values can be reported by:
-Estimated completed value of all projects
-Progress value (how much has been completed as of the report due date)
4. Newly started projects are covered if reported on the next periodic report
5.Coverage ceases when a project is not included on the next report
6. Reports must be submitted on a timely basis and accurately reflect the exposures
7.Penalty provisions exist if the named insured fails to comply with these provisions
8.Often contains a full insurance to value provision that is essentially a 100%
coinsurance clause
✔✔Commercial Inland Marine Property Coverage - ✔✔1. Damage caused by a covered
peril
2.Damage caused by scaffolding, fencing and temporary structures
3. Materials and supplies that become a permanent part
4. Foundations, excavations, grading, filling, permanent fencing
*Only at the job-site scheduled, Open Perils
, ✔✔Property not covered by Commercial Inland Marine - ✔✔1. Land
2. Contraband
3.Not a permanent part of a building
4.Roadways and walkways
5. Existing property being renovated
6. Landscaping materials, including trees, grass, shrubbery, plants
7. Waterborne Property (except while in transit in the custody of a carrier for hire)
8. Aircraft, watercraft, automobiles
✔✔Debris Removal coverage extension for Commercial Inland Marine - ✔✔1. no more
than 25% of the amount unless limit is exceeded
2.An additional 5,000 limit can be added
3. Does not cover
-extract pollutants from land or water
-remove, restore, or replace polluted land or water
4.Must report expenses in writing within 180 days from the date of the physical loss
✔✔Emergency Removal coverage extension for Commercial Inland Marine - ✔✔1.
Coverage applies for up to 10 day after the property is first moved & does not extend
after policy expires
2. Necessary to preserve property from a covered cause of loss
3.While it is being moved or stored
✔✔Supplemental Coverage for Commercial Inland Marine - ✔✔1. Expense to Re-Erect
Scaffolding - $2,500
2. Fire Department Service Charges - $1,000
3. Pollutant Cleanup and Removal - $10,000
-Caused by a covered cause of loss
-Within 180 days
-No coverage for mandated testing
4.Temporary Storage Locations - $10,000
5. Transit - $10,000
✔✔Tier 1 exclusions - ✔✔1. Earth Movement
2. Flood, Surface Water, Mudslide
3. Ordinance or Law
4. Sewer, Septic Tank, Or Drain backup and water below the surface
✔✔Tier 2 exclusions - ✔✔1. Defects, Errors, and Omissions
QUESTIONS WITH ANSWERS GRADED A+
✔✔Those with insurable interests in the building or structure under construction can be
listed as named insured's such as: - ✔✔1. Project Owners
2.General Contractor and subcontractors of all levels
3.Architects and/or engineers, Mortgagee and other lenders, suppliers, construction
manager
✔✔Advantages to having all insurable interest under a single policy - ✔✔1. Greater
efficiency including avoidance of litigation
2. Fewer coverage disputes
3. All parties included would be entitled to a copy of the policy
4. All insured parties have direct policy rights
5. Will usually limit any subrogation efforts by an insurer
✔✔Disadvantages of having all insurable interests on a single policy - ✔✔1. The claim
payment may be made to all insureds
2.Misrepresentation, concealment or fraud by any "insured" may void coverage, unless
there is a provision that protects innocent insureds
✔✔Exposures to loss include - ✔✔-Building or structure under construction
-Materials and supplies at the job site
-Materials and supplies NOT at job site BUT at temporary storage locations
-Temporary structures
-Materials and supplies of others in the care, custody or control of the insureds
-Property in transit
-Debris Removal
-Soft Costs
-Business income and/or rental value
✔✔Builders Risk VS Inland Marine - ✔✔BR:
-Property in transit has limited coverage
-Temporary storage locations off premises have small limits
-Collapse during construction is limited
-Theft of materials is not covered
INLM:
-No Standard Policy
-Broader Covered Property
-Broader Covered Perils
-usually includes transit coverage and temporary storage locations
,✔✔Completed Value Basis - ✔✔1. Coverage applies at the full Limit of Insurance
2. Premium charge will reflect the ever-changing values - % of it
3. No other report is needed
4.Premium will be adjusted once the project is completed to reflect the actual completed
value of the project
5. Often include a 100% coinsurance clause
6. Most common way to write a single location project
✔✔Reporting Form Basis - ✔✔1. Coverage applies at the full limit of insurance - may
have a specific sub-limit that applies per location
2.Premium charged initially is a deposit - premium will be charged based on the values
reported
3. Values can be reported by:
-Estimated completed value of all projects
-Progress value (how much has been completed as of the report due date)
4. Newly started projects are covered if reported on the next periodic report
5.Coverage ceases when a project is not included on the next report
6. Reports must be submitted on a timely basis and accurately reflect the exposures
7.Penalty provisions exist if the named insured fails to comply with these provisions
8.Often contains a full insurance to value provision that is essentially a 100%
coinsurance clause
✔✔Commercial Inland Marine Property Coverage - ✔✔1. Damage caused by a covered
peril
2.Damage caused by scaffolding, fencing and temporary structures
3. Materials and supplies that become a permanent part
4. Foundations, excavations, grading, filling, permanent fencing
*Only at the job-site scheduled, Open Perils
, ✔✔Property not covered by Commercial Inland Marine - ✔✔1. Land
2. Contraband
3.Not a permanent part of a building
4.Roadways and walkways
5. Existing property being renovated
6. Landscaping materials, including trees, grass, shrubbery, plants
7. Waterborne Property (except while in transit in the custody of a carrier for hire)
8. Aircraft, watercraft, automobiles
✔✔Debris Removal coverage extension for Commercial Inland Marine - ✔✔1. no more
than 25% of the amount unless limit is exceeded
2.An additional 5,000 limit can be added
3. Does not cover
-extract pollutants from land or water
-remove, restore, or replace polluted land or water
4.Must report expenses in writing within 180 days from the date of the physical loss
✔✔Emergency Removal coverage extension for Commercial Inland Marine - ✔✔1.
Coverage applies for up to 10 day after the property is first moved & does not extend
after policy expires
2. Necessary to preserve property from a covered cause of loss
3.While it is being moved or stored
✔✔Supplemental Coverage for Commercial Inland Marine - ✔✔1. Expense to Re-Erect
Scaffolding - $2,500
2. Fire Department Service Charges - $1,000
3. Pollutant Cleanup and Removal - $10,000
-Caused by a covered cause of loss
-Within 180 days
-No coverage for mandated testing
4.Temporary Storage Locations - $10,000
5. Transit - $10,000
✔✔Tier 1 exclusions - ✔✔1. Earth Movement
2. Flood, Surface Water, Mudslide
3. Ordinance or Law
4. Sewer, Septic Tank, Or Drain backup and water below the surface
✔✔Tier 2 exclusions - ✔✔1. Defects, Errors, and Omissions
