RMIN 5100S EXAM 2 PRACTICE QUESTIONS &
ANSWERS
Coverage under the Fire Peril Includes all of the following, EXCPET: - Answer -Items
that fall into a Friendly Fire
Customer drove car into a covered building. Building owner has with Broad COL form.
What is covered? - Answer -Damage to Building only
In which Peril(s) is the Special form Broader than the Broad form? - Answer -Theft
Which statement about Ordinance or Law / Increased Cost of Construction is FALSE?
-It is excluded under the Basic Form
- It is excluded under Special Form
- Covered when RCV option chosen, for the lesser of 5% of limit or $10,000 - Answer -
All of the options are true
BPP with Bldg & PP coverage and standard deductible. Loss of Bld $400 and PP
$1,000. How much would policy pay? - Answer -$900
Which is NOT covered in a Basic Policy - Answer -Damage to building due to a tree
falling onto the building
In the Special form, what are the SPECIFIED perils? - Answer -Broad Form Perils
With regard to Sprinkler Leakage peril in Basic & Broad, what is covered? - Answer -All
of the other costs would be covered
If an exclusion is subject to the Doctrine of Concurrent Causation & it occurs, along
with, Covered loss, what happens? - Answer -The entire loss is covered.
What type of Water Damage is Excluded in a Broad form?
- Water Damage from a pipe burst.
- Water Damage from the weight of Snow on the roof.
- Wind driven rain that breaks through a roof and damages interior - Answer -NONE of
these are excluded. All of these would be covered by a Broad Form
Which of these exclusions would also exclude resulting Fire? - Answer -War
BPP with a Special CoL form, which loss would be covered? - Answer -Theft of
merchandise by a customer
, Coverage extensions under the Building and Personal Property Coverage Form (BPP)
differ from additional coverages in that)
A)Additional coverages are not subject to the limits of insurance stated in the
declarations
.B)Coverage extensions include coverage for outdoor property, for all covered causes of
loss
C)Coverage extensions include up to $100,000 of business personal property coverage
at most newly acquired locations
.D)Additional coverages only apply if at least 80 percent coinsurance is stated in the
declarations. - Answer -C
Which one of the following would be considered Your Business Personal Property under
a Building and Personal Property Coverage Form (BPP)
A)Outdoor Furniture
B)Fire Extinguisher
C)Refridgerator
D)Stock - Answer -D
Under the Building and Personal Property Coverage Form (BPP), which one of the
following is property not covered?
A)A retaining wall in front of the insured building
B)A desk that was custom-ordered for the company's CEO
C)A bottling machine the company is leasing long-term and required to insure in the
lease agreement.
D)A crate used to carry empty bottles to the cleaning machine - Answer -A
4)Which of the following perils are covered under theBroadForm of the BPP?
I. Lava Flow from a Volcano.
II. Roof collapse due to the weight of snow.
III. Water damage from the collapse of an automatic sprinkler system tank.
A)I and II
B)I and III
C)II and III
D)I, II and III - Answer -D
A building is insured for $100,000 under a BPP (unendorsed) with a 75% coinsurance
clause. The building is completely destroyed by a covered peril. At the time of the loss,
the building is valued-at $100,000. Additional costs incurred by the insured included
$30,000 in Debris removal, $50,000to comply with current building codes required by
local ordinances and $15,000 in the clean up of resulting pollution. In addition, the
insured spent $5,000 researching and reconstructing lost records (not electronic
ANSWERS
Coverage under the Fire Peril Includes all of the following, EXCPET: - Answer -Items
that fall into a Friendly Fire
Customer drove car into a covered building. Building owner has with Broad COL form.
What is covered? - Answer -Damage to Building only
In which Peril(s) is the Special form Broader than the Broad form? - Answer -Theft
Which statement about Ordinance or Law / Increased Cost of Construction is FALSE?
-It is excluded under the Basic Form
- It is excluded under Special Form
- Covered when RCV option chosen, for the lesser of 5% of limit or $10,000 - Answer -
All of the options are true
BPP with Bldg & PP coverage and standard deductible. Loss of Bld $400 and PP
$1,000. How much would policy pay? - Answer -$900
Which is NOT covered in a Basic Policy - Answer -Damage to building due to a tree
falling onto the building
In the Special form, what are the SPECIFIED perils? - Answer -Broad Form Perils
With regard to Sprinkler Leakage peril in Basic & Broad, what is covered? - Answer -All
of the other costs would be covered
If an exclusion is subject to the Doctrine of Concurrent Causation & it occurs, along
with, Covered loss, what happens? - Answer -The entire loss is covered.
What type of Water Damage is Excluded in a Broad form?
- Water Damage from a pipe burst.
- Water Damage from the weight of Snow on the roof.
- Wind driven rain that breaks through a roof and damages interior - Answer -NONE of
these are excluded. All of these would be covered by a Broad Form
Which of these exclusions would also exclude resulting Fire? - Answer -War
BPP with a Special CoL form, which loss would be covered? - Answer -Theft of
merchandise by a customer
, Coverage extensions under the Building and Personal Property Coverage Form (BPP)
differ from additional coverages in that)
A)Additional coverages are not subject to the limits of insurance stated in the
declarations
.B)Coverage extensions include coverage for outdoor property, for all covered causes of
loss
C)Coverage extensions include up to $100,000 of business personal property coverage
at most newly acquired locations
.D)Additional coverages only apply if at least 80 percent coinsurance is stated in the
declarations. - Answer -C
Which one of the following would be considered Your Business Personal Property under
a Building and Personal Property Coverage Form (BPP)
A)Outdoor Furniture
B)Fire Extinguisher
C)Refridgerator
D)Stock - Answer -D
Under the Building and Personal Property Coverage Form (BPP), which one of the
following is property not covered?
A)A retaining wall in front of the insured building
B)A desk that was custom-ordered for the company's CEO
C)A bottling machine the company is leasing long-term and required to insure in the
lease agreement.
D)A crate used to carry empty bottles to the cleaning machine - Answer -A
4)Which of the following perils are covered under theBroadForm of the BPP?
I. Lava Flow from a Volcano.
II. Roof collapse due to the weight of snow.
III. Water damage from the collapse of an automatic sprinkler system tank.
A)I and II
B)I and III
C)II and III
D)I, II and III - Answer -D
A building is insured for $100,000 under a BPP (unendorsed) with a 75% coinsurance
clause. The building is completely destroyed by a covered peril. At the time of the loss,
the building is valued-at $100,000. Additional costs incurred by the insured included
$30,000 in Debris removal, $50,000to comply with current building codes required by
local ordinances and $15,000 in the clean up of resulting pollution. In addition, the
insured spent $5,000 researching and reconstructing lost records (not electronic
