RMIN 5100S TEST 2
BROWN (ACTUAL 2025)
QUESTIONS AND
CORRECT VERIFIED
ANSWERS
,list of BPP coverage extensions (7) - <<<Answers>>>1.
newly acquired or constructed property
2. personal effects and property of others
3. valuable papers and records (other than electronic data)
4. property off-premises
5. outdoor property
6. non-owned detached trailers
7. business personal property temporarily in portable storage
units
BPP additional coverage - preservation of property -
<<<Answers>>>a. When it is necessary to move covered
property to protect it from a covered cause of loss, this
provides coverage for that property while it is being moved or
temporarily stored for up to 30 days
b. Coverage is broader than what the policy normally provides
- pays for "any direct physical loss or damage to that
property"
c. Subject to policy limits
BPP coverage extension - newly acquired or constructed
property - <<<Answers>>>a. Building - if policy covers
building(s), coverage provided for new building being built or
buildings you acquire, new/acquired building must have
similar use as building in Dec or be used as a warehouse, &
provides up to $250,000 in coverage at each building
,b. Your business personal property - if policy covers your
business personal property, coverage provided for property
you acquire & provides up to $100,000 in coverage at each
building
c. Period of coverage - coverage expires at policy expiration,
30 days after construction begins, 30 days after acquisition, or
when values are reported to insurer
vacancy - <<<Answers>>>if building has been vacant for
more than 60 consecutive days prior to loss, the insurer will
not pay for loss caused by vandalism, sprinkler leakage
(unless protected against freezing), glass breakage, water
damage, or theft
valuation - <<<Answers>>>covered property losses are
settled at ACV (reflects RC-depreciation)
BPP additional conditions - <<<Answers>>>coinsurance
mortgage holders
BPP additional conditions - mortgage holders -
<<<Answers>>>If a mortgagee is shown on the Declarations,
the insurer is obligated to include them on any loss payment
Insurer may be obligated to make loss payments to
mortgagees even though it denied coverage to the insurance
(ex: arson)
, If insurer cancels or non-renews the policy, they must provide
written notice to the mortgagee
BPP optional coverages (only apply when noted on the
declarations) (4) - <<<Answers>>>agreed value
inflation guard
replacement cost
extension of RC to personal property of others
BPP optional coverages - agreed value -
<<<Answers>>>Removes the coinsurance provision from the
policy
Essentially, the insurer and insured agree in advance on the
value of insured property
However, if the limit of insurance is less than the agreed value
(this would be very rare), the loss payment is still reduced
BPP optional coverages - inflation guard -
<<<Answers>>>automatically increases the Limit of
BROWN (ACTUAL 2025)
QUESTIONS AND
CORRECT VERIFIED
ANSWERS
,list of BPP coverage extensions (7) - <<<Answers>>>1.
newly acquired or constructed property
2. personal effects and property of others
3. valuable papers and records (other than electronic data)
4. property off-premises
5. outdoor property
6. non-owned detached trailers
7. business personal property temporarily in portable storage
units
BPP additional coverage - preservation of property -
<<<Answers>>>a. When it is necessary to move covered
property to protect it from a covered cause of loss, this
provides coverage for that property while it is being moved or
temporarily stored for up to 30 days
b. Coverage is broader than what the policy normally provides
- pays for "any direct physical loss or damage to that
property"
c. Subject to policy limits
BPP coverage extension - newly acquired or constructed
property - <<<Answers>>>a. Building - if policy covers
building(s), coverage provided for new building being built or
buildings you acquire, new/acquired building must have
similar use as building in Dec or be used as a warehouse, &
provides up to $250,000 in coverage at each building
,b. Your business personal property - if policy covers your
business personal property, coverage provided for property
you acquire & provides up to $100,000 in coverage at each
building
c. Period of coverage - coverage expires at policy expiration,
30 days after construction begins, 30 days after acquisition, or
when values are reported to insurer
vacancy - <<<Answers>>>if building has been vacant for
more than 60 consecutive days prior to loss, the insurer will
not pay for loss caused by vandalism, sprinkler leakage
(unless protected against freezing), glass breakage, water
damage, or theft
valuation - <<<Answers>>>covered property losses are
settled at ACV (reflects RC-depreciation)
BPP additional conditions - <<<Answers>>>coinsurance
mortgage holders
BPP additional conditions - mortgage holders -
<<<Answers>>>If a mortgagee is shown on the Declarations,
the insurer is obligated to include them on any loss payment
Insurer may be obligated to make loss payments to
mortgagees even though it denied coverage to the insurance
(ex: arson)
, If insurer cancels or non-renews the policy, they must provide
written notice to the mortgagee
BPP optional coverages (only apply when noted on the
declarations) (4) - <<<Answers>>>agreed value
inflation guard
replacement cost
extension of RC to personal property of others
BPP optional coverages - agreed value -
<<<Answers>>>Removes the coinsurance provision from the
policy
Essentially, the insurer and insured agree in advance on the
value of insured property
However, if the limit of insurance is less than the agreed value
(this would be very rare), the loss payment is still reduced
BPP optional coverages - inflation guard -
<<<Answers>>>automatically increases the Limit of
