CIC Commercial Multi-Line Exam 2025 –
Verified Questions and 100% Correct
Coverage Answers
Commercial Inland Marine (1–25)
Question 1: What is the primary purpose of a commercial inland marine policy?
A) Cover property in transit or away from fixed locations
B) Provide liability coverage for businesses
C) Insure residential properties
D) Cover employee injuries
Answer: A) Cover property in transit or away from fixed locations
Rationale: Inland marine insurance covers movable property, such as goods in transit or
equipment at job sites, unlike fixed property covered by commercial property insurance.
Question 2: Which inland marine form covers goods shipped via common carrier?
A) Builders Risk Form
B) Motor Truck Cargo Form
C) Installation Floater
D) Bailee’s Customer Form
Answer: B) Motor Truck Cargo Form
Rationale: The Motor Truck Cargo Form covers goods in transit by a carrier, protecting against
loss or damage.
Question 3: What is a key characteristic of a floater policy in inland marine insurance?
A) Covers only fixed locations
B) Provides coverage for specific scheduled items
C) Excludes transit coverage
D) Requires a coinsurance clause
Answer: B) Provides coverage for specific scheduled items
Rationale: Floater policies cover specific items (e.g., jewelry, equipment) wherever they are,
often on a scheduled basis.
Question 4: Which peril is typically excluded in an inland marine policy unless added by
endorsement?
A) Theft
B) Fire
C) Earthquake
D) Collision
Answer: C) Earthquake
Rationale: Earthquake coverage is often excluded in inland marine policies and requires a
specific endorsement.
,Question 5: Which items are commonly covered under a commercial inland marine policy?
(Select all that apply.)
A) Contractor’s equipment
B) Goods in transit
C) Accounts receivable records
D) Employee personal vehicles
Answers: A, B, C
Rationale: Inland marine policies cover contractor’s equipment, goods in transit, and accounts
receivable. Employee personal vehicles are covered under auto policies.
Question 6: What is the purpose of a Bailee’s Customer Form?
A) Covers property owned by the insured
B) Protects property in the insured’s care, custody, or control
C) Insures fixed business property
D) Provides liability coverage for employees
Answer: B) Protects property in the insured’s care, custody, or control
Rationale: Bailee’s Customer Forms cover customer property in the insured’s possession, such
as at a dry cleaner or repair shop.
Question 7: Which coverage is included in a Builders Risk Form?
A) Completed buildings
B) Property under construction
C) Employee tools
D) Leased vehicles
Answer: B) Property under construction
Rationale: Builders Risk Forms cover buildings and materials during construction.
Question 8: What is the valuation basis for most inland marine policies?
A) Actual cash value (ACV)
B) Replacement cost
C) Market value
D) Agreed value
Answer: A) Actual cash value (ACV)
Rationale: Inland marine policies typically use ACV unless replacement cost is endorsed.
Question 9: What is the purpose of an Installation Floater?
A) Covers completed structures
B) Protects materials during installation
C) Insures employee vehicles
D) Covers business interruption
Answer: B) Protects materials during installation
Rationale: Installation Floaters cover materials and equipment during installation at a job site.
Question 10: Which inland marine form covers electronic data processing equipment?
A) Motor Truck Cargo Form
B) EDP Floater
, C) Builders Risk Form
D) Bailee’s Customer Form
Answer: B) EDP Floater
Rationale: EDP Floaters cover computers and data processing equipment.
Question 11: What is a transit limit in an inland marine policy?
A) Maximum coverage for goods in transit
B) Limit for fixed property
C) Deductible for theft losses
D) Coinsurance requirement
Answer: A) Maximum coverage for goods in transit
Rationale: The transit limit caps coverage for property during transportation.
Question 12: Which property is covered under a Jewelers Block Form?
A) Customer vehicles
B) Jewelry and precious stones
C) Office furniture
D) Building structure
Answer: B) Jewelry and precious stones
Rationale: Jewelers Block Forms cover jewelry, gems, and related inventory.
Question 13: What is a common exclusion in inland marine policies?
A) Theft
B) Wear and tear
C) Fire
D) Vandalism
Answer: B) Wear and tear
Rationale: Wear and tear is a standard exclusion, as it reflects normal depreciation.
Question 14: Which form covers property stored at a temporary location?
A) Warehouse-to-Warehouse Clause
B) Transit Floater
C) Temporary Location Floater
D) Installation Floater
Answer: C) Temporary Location Floater
Rationale: This floater covers property at temporary sites, such as exhibitions.
Question 15: What is the purpose of a Trip Transit Policy?
A) Covers ongoing shipments
B) Insures a single shipment
C) Protects fixed property
D) Covers employee travel
Answer: B) Insures a single shipment
Rationale: A Trip Transit Policy covers a specific one-time shipment.
Verified Questions and 100% Correct
Coverage Answers
Commercial Inland Marine (1–25)
Question 1: What is the primary purpose of a commercial inland marine policy?
A) Cover property in transit or away from fixed locations
B) Provide liability coverage for businesses
C) Insure residential properties
D) Cover employee injuries
Answer: A) Cover property in transit or away from fixed locations
Rationale: Inland marine insurance covers movable property, such as goods in transit or
equipment at job sites, unlike fixed property covered by commercial property insurance.
Question 2: Which inland marine form covers goods shipped via common carrier?
A) Builders Risk Form
B) Motor Truck Cargo Form
C) Installation Floater
D) Bailee’s Customer Form
Answer: B) Motor Truck Cargo Form
Rationale: The Motor Truck Cargo Form covers goods in transit by a carrier, protecting against
loss or damage.
Question 3: What is a key characteristic of a floater policy in inland marine insurance?
A) Covers only fixed locations
B) Provides coverage for specific scheduled items
C) Excludes transit coverage
D) Requires a coinsurance clause
Answer: B) Provides coverage for specific scheduled items
Rationale: Floater policies cover specific items (e.g., jewelry, equipment) wherever they are,
often on a scheduled basis.
Question 4: Which peril is typically excluded in an inland marine policy unless added by
endorsement?
A) Theft
B) Fire
C) Earthquake
D) Collision
Answer: C) Earthquake
Rationale: Earthquake coverage is often excluded in inland marine policies and requires a
specific endorsement.
,Question 5: Which items are commonly covered under a commercial inland marine policy?
(Select all that apply.)
A) Contractor’s equipment
B) Goods in transit
C) Accounts receivable records
D) Employee personal vehicles
Answers: A, B, C
Rationale: Inland marine policies cover contractor’s equipment, goods in transit, and accounts
receivable. Employee personal vehicles are covered under auto policies.
Question 6: What is the purpose of a Bailee’s Customer Form?
A) Covers property owned by the insured
B) Protects property in the insured’s care, custody, or control
C) Insures fixed business property
D) Provides liability coverage for employees
Answer: B) Protects property in the insured’s care, custody, or control
Rationale: Bailee’s Customer Forms cover customer property in the insured’s possession, such
as at a dry cleaner or repair shop.
Question 7: Which coverage is included in a Builders Risk Form?
A) Completed buildings
B) Property under construction
C) Employee tools
D) Leased vehicles
Answer: B) Property under construction
Rationale: Builders Risk Forms cover buildings and materials during construction.
Question 8: What is the valuation basis for most inland marine policies?
A) Actual cash value (ACV)
B) Replacement cost
C) Market value
D) Agreed value
Answer: A) Actual cash value (ACV)
Rationale: Inland marine policies typically use ACV unless replacement cost is endorsed.
Question 9: What is the purpose of an Installation Floater?
A) Covers completed structures
B) Protects materials during installation
C) Insures employee vehicles
D) Covers business interruption
Answer: B) Protects materials during installation
Rationale: Installation Floaters cover materials and equipment during installation at a job site.
Question 10: Which inland marine form covers electronic data processing equipment?
A) Motor Truck Cargo Form
B) EDP Floater
, C) Builders Risk Form
D) Bailee’s Customer Form
Answer: B) EDP Floater
Rationale: EDP Floaters cover computers and data processing equipment.
Question 11: What is a transit limit in an inland marine policy?
A) Maximum coverage for goods in transit
B) Limit for fixed property
C) Deductible for theft losses
D) Coinsurance requirement
Answer: A) Maximum coverage for goods in transit
Rationale: The transit limit caps coverage for property during transportation.
Question 12: Which property is covered under a Jewelers Block Form?
A) Customer vehicles
B) Jewelry and precious stones
C) Office furniture
D) Building structure
Answer: B) Jewelry and precious stones
Rationale: Jewelers Block Forms cover jewelry, gems, and related inventory.
Question 13: What is a common exclusion in inland marine policies?
A) Theft
B) Wear and tear
C) Fire
D) Vandalism
Answer: B) Wear and tear
Rationale: Wear and tear is a standard exclusion, as it reflects normal depreciation.
Question 14: Which form covers property stored at a temporary location?
A) Warehouse-to-Warehouse Clause
B) Transit Floater
C) Temporary Location Floater
D) Installation Floater
Answer: C) Temporary Location Floater
Rationale: This floater covers property at temporary sites, such as exhibitions.
Question 15: What is the purpose of a Trip Transit Policy?
A) Covers ongoing shipments
B) Insures a single shipment
C) Protects fixed property
D) Covers employee travel
Answer: B) Insures a single shipment
Rationale: A Trip Transit Policy covers a specific one-time shipment.
