RMIN 5100S Test 2 Atkinson STUDY GUIDE 2026/2027 ACCURATE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS RECENT VERSION

RMIN 5100S Test 2 Atkinson STUDY GUIDE 2026/2027 ACCURATE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS RECENT VERSION 1. categories of commercial loss exposures (4) - ANSWER 1. property personnel liability net income 2. commercial property loss exposures - ANSWER type of property causes of loss to property financial consequences of property losses commercial property coverage part 3. types of property - ANSWER real and personal 4. real property - ANSWER land & buildings, all property permanently attached to buildings, driveways, sidewalks, underground piping, etc, plumbing, wiring, HVAC 5. personal property - ANSWER all property that is not real property (cash, furniture, clothing) 6. personal property classifications - ANSWER contents (business personal property and property of others in the insured's care, custody, and control) Property in transit - limited amount of coverage; might need inland marine endorsement Property in the possession of others "Floating" property - photographer has camera, handyman has tools, farmer has tractors; limited amount of coverage; might need inland marine endorsement 7. causes of loss to property - ANSWER Windstorm Theft Flood Fire - poses greatest risk to large or total loss Earthquake, terrorism, etc; may need separate policy because excluded 8. broader coverage in special form - theft - ANSWER basic & broad forms: Only covers theft by looting at the time of riot or civil commotion 9. special form: Covers theft of covered property under a wide variety of circumstances subject to exclusions and limitations 10. Identify examples of theft-related acts for which coverage is excluded under the Special Form - ANSWER - Dishonest or criminal acts (including theft) of the insured or of partners, members, officers, managers, directors, or employees of the insured. - The voluntary surrendering of property as the result of a fraudulent scheme or trickery (parting) - Loss by theft of construction materials not attached as part of the building - Loss of property that is simply missing without explanation or that is evidenced only by an inventory shortage 11. Describe the characteristics of property that qualifies as Property in Transit under the BPP - ANSWER To qualify as Property in Transit under the BPP, property must be on or in a motor vehicle owned, leased, or operated by the insured and cannot be in the custody of the insured's sales personnel. 12. Coverage for Jones's building and business personal property is currently subject to a Causes of Loss - Broad Form. When Jones renews his property insurance, he will purchase coverage subject to a Causes of Loss - Special Form, rather than a Broad Form. Briefly explain how the coverage for building and business personal property will be affected by this change. - ANSWER With the Special Form, Jones's building and personal property form will have coverage for accidental and unforeseen risks of direct physical loss subject to exclusions and limitations expressed in the form. With the Broad Form, Jones's building and business personal property form had coverage for the listed perils. 13. Explain why the amount the insurer pays for a loss covered under the BPP is generally less than the applicable amount of insurance. - ANSWER The amount that the insurer pays for a loss covered under the BPP is generally less than the applicable amount of insurance because total commercial property losses are rare, and the BPP contains limitations in addition to the limit of insurance that reduce the amount the insurer pays. 14. Contrast specific and blanket limits of insurance - ANSWER When specific limits are used, the declarations show separate limits of insurance for each covered building and for personal property at each location 15. A blanket limit can apply one amount of insurance to all property covered by the policy 16. Explain how the BPP's deductible is applied following a loss, if the loss exceeds the deductible shown in the policy declarations. - ANSWER If a loss exceeds the deductible shown in the policy declarations, the deductible is subtracted from the loss, not from the limit of insurance. 17. Explain how the BPP's deductible is applied when the occurrence involves loss to more than one item of Covered Property and when separate limits of insurance apply. - ANSWER When the occurrence involves loss to more than one item of Covered Property and when separate limits of insurance apply, the losses will not be combined in determining application of the deductible. But the deductible will be applied only once per occurrence. 18. What is the standard deductible for the BPP? - ANSWER Under the ISO rules, the standard deductible for the BPP is $500. 19. Which one of the following statements is correct with respect to the business personal property coverage provided by the Building and Personal Property Coverage Form (BPP)? Select one: 'A)Leased personal property for which the named insured has a contractual responsibility to procure coverage is excluded from the BPP, but the coverage can be added by endorsement. B)Except for limited off-premises coverage, coverage for business personal property applies only wen the property is located in or on the described building or in the open (or in a vehicle) within 100 feet of the building or structure or within 100 feet of the premises, whichever is greater. C)The definition of business personal property limits the coverage to furniture, fixtures, machinery and equipment owned by the insured and used in the insured's business. D)"Your business personal property" specifically excludes labor, materials, or services furnished b - ANSWER B