CIC COMMERCIAL PROPERTY RELIABLE EXAMS SHEET
QUESTIONS AND SOLUTIONS 2025/2026 RATED A+
✔✔7 Coverage Extensions BPP #6: Non-Owned Detached Trailers - ✔✔- Used in
Business or In CCC
- contractual responsibility for loss or damage
- only at the described premises
- NOT attached to any motorized Vehicle
- NOT during hitching/unhitching/accidentally unhitched
- $5,000
- is excess over any other insurance
✔✔7 Coverage Extensions BPP #7: BPP temporarily in Portable Storage Units - ✔✔-
Located within 100ft or building/structure or premises
- including a detached trailer
- 90 days max from when storage unit arrived
- $10,000
- NOT applicable if the loss is otherwise covered and NOT applicable to loss/damage to
storage unit itself
✔✔How much BPP coverage is available for outdoor signs? What Endorsement can be
used to insure for higher limits? - ✔✔$2,500 per sign per occurrence
Outdoor Signs Endorsement
✔✔What endorsements enable insured to have separate deductibles on different
locations? - ✔✔Deductibles by location Endorsement
Multiple Deductibles Form (Fixed Dollar Deductible) Endsmt
✔✔What are the 7 Loss conditions? - ✔✔1. Abandonment not allowed
2. Appraisal
3. Duties in the event of loss or damage
4. Loss payment
5. Recovered Property
6. Vacancy
7. Valuation
✔✔7 Loss Conditions #3: Duties in Event of Loss or Damage - ✔✔- Notify police if a law
may have been broken
- give prompt notice
- give description
- reasonable steps to protect from further loss
- give complete inventory upon request
- permit inspection/examination
- Signed, sworn proof of loss within 60 days of request
,- cooperate in investigation
✔✔7 Loss Conditions #4: Loss payment - ✔✔Insurer's Options
- pay value
- pay cost of repairing/replacing
- repair, rebuild, or replace with like kind/quality
Insurer's option expressed within 30 days of receipt of proof of loss
No more than the NI's financial interest
✔✔Loss Payable Provisions Endorsement - ✔✔cpp endorsement that has 4 options for
loss payees: Loss Payable, Lender's Loss Payable, Contract of Sale, and Building
Owner Loss Payable
Loss Payees have no greater rights than the NI
Lender Loss Payees have rights and responsibilities of a mortgage holder
✔✔What is a party wall?
How does the CPP pay for losses involving a Party wall? - ✔✔a wall that lies on a line
between two buildings and is common to both buildings. Buildings are owned by
different parties.
Policy will pay a proportion of the loss to the party wall based on your interest in the
wall.
- if owner of the adjoining building elects NOT to repair/replace, the policy will pay for
the full value of the loss to the party wall up to LOI
✔✔7 Loss Conditions #6: Vacancy - ✔✔If NI is a Tenant - vacant = not enough BPP to
conduct customary operations
If NI is Owner or Lessee - vacant = less than 31% is rented or used by the NI to conduct
customary operations
Building under Construction / Renovation are NOT considered vacant
When vacant for 60 days the payment is reduced by 15%.
When vacant, the following are Excluded:
- Vandalism
- Sprinkler Leakage
- Building Glass Breakage
- Water Damage
- Theft
- Attempted theft
(Vacancy Permit Endorsement)
, ✔✔1. Vacancy Permit Endorsement
2. Vacancy Change Endorsement - ✔✔1. Waives Vacancy Loss Condition
Allows Covg to continue for a specific period when building is deemed vacant beyond
60 days
Can still exclude vandalism/sprinkler leakage
2. Used to change the 31% minimum use requirement
all other terms remain unchanged
✔✔7 Loss Conditions #7: Valuation - ✔✔ACV except as otherwise provided
Pays RC If $2,500 or less, and coinsurance is satisfied (NOT including ICC)
ACV when attached to a building:
- Awnings or Floor coverings
- Certain Appliance
- Outdoor Equipment or Furniture
- Stock (sold but not delivered) at selling price minus expenses not incurred
- Glass at cost of any required safety-glazing materials
- Special Valuation for tenant's improvements and betterments
✔✔Endorsements used to Modify the Valuation Loss Condition (1-)
1. Manufacturer's Selling Price (Finished "Stock" only)
2. Market Value - Stock
3. Manufacturers Consequential Loss Assumption - ✔✔1. allows insured to be paid for
the profit that would have otherwise been earned from the sale
2. allows insured to be paid market value of stock where the market price is
posted/quoted
3. Allows insured to recover the reduction in value of undamaged stock
✔✔Endorsements used to Modify the Valuation Loss Condition (4-)
4. Functional Personal Valuation (Other than Stock)
5. Functional Building Valuation
6. Increased costs of Loss and Related Expenses for Green Upgrades - ✔✔4. Allows
insured to replace PP with most closely equivalent available
- coinsurance does not apply
5. Designed to insure older buildings or buildings could/would not be replaced as-is
QUESTIONS AND SOLUTIONS 2025/2026 RATED A+
✔✔7 Coverage Extensions BPP #6: Non-Owned Detached Trailers - ✔✔- Used in
Business or In CCC
- contractual responsibility for loss or damage
- only at the described premises
- NOT attached to any motorized Vehicle
- NOT during hitching/unhitching/accidentally unhitched
- $5,000
- is excess over any other insurance
✔✔7 Coverage Extensions BPP #7: BPP temporarily in Portable Storage Units - ✔✔-
Located within 100ft or building/structure or premises
- including a detached trailer
- 90 days max from when storage unit arrived
- $10,000
- NOT applicable if the loss is otherwise covered and NOT applicable to loss/damage to
storage unit itself
✔✔How much BPP coverage is available for outdoor signs? What Endorsement can be
used to insure for higher limits? - ✔✔$2,500 per sign per occurrence
Outdoor Signs Endorsement
✔✔What endorsements enable insured to have separate deductibles on different
locations? - ✔✔Deductibles by location Endorsement
Multiple Deductibles Form (Fixed Dollar Deductible) Endsmt
✔✔What are the 7 Loss conditions? - ✔✔1. Abandonment not allowed
2. Appraisal
3. Duties in the event of loss or damage
4. Loss payment
5. Recovered Property
6. Vacancy
7. Valuation
✔✔7 Loss Conditions #3: Duties in Event of Loss or Damage - ✔✔- Notify police if a law
may have been broken
- give prompt notice
- give description
- reasonable steps to protect from further loss
- give complete inventory upon request
- permit inspection/examination
- Signed, sworn proof of loss within 60 days of request
,- cooperate in investigation
✔✔7 Loss Conditions #4: Loss payment - ✔✔Insurer's Options
- pay value
- pay cost of repairing/replacing
- repair, rebuild, or replace with like kind/quality
Insurer's option expressed within 30 days of receipt of proof of loss
No more than the NI's financial interest
✔✔Loss Payable Provisions Endorsement - ✔✔cpp endorsement that has 4 options for
loss payees: Loss Payable, Lender's Loss Payable, Contract of Sale, and Building
Owner Loss Payable
Loss Payees have no greater rights than the NI
Lender Loss Payees have rights and responsibilities of a mortgage holder
✔✔What is a party wall?
How does the CPP pay for losses involving a Party wall? - ✔✔a wall that lies on a line
between two buildings and is common to both buildings. Buildings are owned by
different parties.
Policy will pay a proportion of the loss to the party wall based on your interest in the
wall.
- if owner of the adjoining building elects NOT to repair/replace, the policy will pay for
the full value of the loss to the party wall up to LOI
✔✔7 Loss Conditions #6: Vacancy - ✔✔If NI is a Tenant - vacant = not enough BPP to
conduct customary operations
If NI is Owner or Lessee - vacant = less than 31% is rented or used by the NI to conduct
customary operations
Building under Construction / Renovation are NOT considered vacant
When vacant for 60 days the payment is reduced by 15%.
When vacant, the following are Excluded:
- Vandalism
- Sprinkler Leakage
- Building Glass Breakage
- Water Damage
- Theft
- Attempted theft
(Vacancy Permit Endorsement)
, ✔✔1. Vacancy Permit Endorsement
2. Vacancy Change Endorsement - ✔✔1. Waives Vacancy Loss Condition
Allows Covg to continue for a specific period when building is deemed vacant beyond
60 days
Can still exclude vandalism/sprinkler leakage
2. Used to change the 31% minimum use requirement
all other terms remain unchanged
✔✔7 Loss Conditions #7: Valuation - ✔✔ACV except as otherwise provided
Pays RC If $2,500 or less, and coinsurance is satisfied (NOT including ICC)
ACV when attached to a building:
- Awnings or Floor coverings
- Certain Appliance
- Outdoor Equipment or Furniture
- Stock (sold but not delivered) at selling price minus expenses not incurred
- Glass at cost of any required safety-glazing materials
- Special Valuation for tenant's improvements and betterments
✔✔Endorsements used to Modify the Valuation Loss Condition (1-)
1. Manufacturer's Selling Price (Finished "Stock" only)
2. Market Value - Stock
3. Manufacturers Consequential Loss Assumption - ✔✔1. allows insured to be paid for
the profit that would have otherwise been earned from the sale
2. allows insured to be paid market value of stock where the market price is
posted/quoted
3. Allows insured to recover the reduction in value of undamaged stock
✔✔Endorsements used to Modify the Valuation Loss Condition (4-)
4. Functional Personal Valuation (Other than Stock)
5. Functional Building Valuation
6. Increased costs of Loss and Related Expenses for Green Upgrades - ✔✔4. Allows
insured to replace PP with most closely equivalent available
- coinsurance does not apply
5. Designed to insure older buildings or buildings could/would not be replaced as-is
