CIC Commercial Property Exam Prep
QUESTIONS AND VERIFIED SOLUTIONS |2026
EXAM | ELABORATED &DETAILED ANSWERS!!
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Terms in this set (21)
Endorsements used to modify 1. newly acquired or constructed property -
coverage extensions (6) increased limit
2. higher limits
3. specified bpp temporarily away from premises
4. additional covered property
5. radio or television antennas
6. trees, shrubs, plants
Explain replacement cost - without deduction for depreciation
- claims are paid on acv until repairs or
replacements is complete and then difference is
paid
- does not apply to pp of others, contents of
residence or fine arts
Optional Coverage - RC PP OF - applies rc to property of others but limited to
OTHERS the lessor of amount required by contract or RC
Loss Payment options (4) 1. Pay the value
2. Pay the cost to repair or replace
3. take the property at an agreed or appraised
value
4. repair, rebuild or replace with like kind and
quality
, Vacancy provision - describe and 1. Tenant - does not contain enough BPP to
apply conduct customary operations
2. owner - must be at least 31% leased and used
by lessee to conduct customary operations
3. Under construction or renovation are not
vacant
4. vacant for 60 consecutive days - theft,
vandalism, sprinkler leakage, glass breakage, and
attempted theft are not covered perils
5. all other causes of loss payment is reduced by
15%
Endorsement that modify valuation 1. Manufacturers selling price (finished stock)
provision (6) 2. market value - stock
3. manufactures consequential loss assumption
4. Functional personal property valuation
5. functional building valuation
6. increased cost of loss and related expenses for
green updates
Describe increased cost of includes additional cost to repair or replace with
construction - green endorsement green materials
- coinsurance does not apply
- a limit must be selected for green upgrades
- a percentage must be selected (10%, 20%) and
the most the policy will pay is the amount paid
for the loss plus deductible times the % selected
coinsurance formula did/should x loss
elements of the financial statement Gross Sales - Cost of Goods Sold = Gross Profit
that impact business income loss Gross Profit - Operating expenses = Net Profit
QUESTIONS AND VERIFIED SOLUTIONS |2026
EXAM | ELABORATED &DETAILED ANSWERS!!
Save
Terms in this set (21)
Endorsements used to modify 1. newly acquired or constructed property -
coverage extensions (6) increased limit
2. higher limits
3. specified bpp temporarily away from premises
4. additional covered property
5. radio or television antennas
6. trees, shrubs, plants
Explain replacement cost - without deduction for depreciation
- claims are paid on acv until repairs or
replacements is complete and then difference is
paid
- does not apply to pp of others, contents of
residence or fine arts
Optional Coverage - RC PP OF - applies rc to property of others but limited to
OTHERS the lessor of amount required by contract or RC
Loss Payment options (4) 1. Pay the value
2. Pay the cost to repair or replace
3. take the property at an agreed or appraised
value
4. repair, rebuild or replace with like kind and
quality
, Vacancy provision - describe and 1. Tenant - does not contain enough BPP to
apply conduct customary operations
2. owner - must be at least 31% leased and used
by lessee to conduct customary operations
3. Under construction or renovation are not
vacant
4. vacant for 60 consecutive days - theft,
vandalism, sprinkler leakage, glass breakage, and
attempted theft are not covered perils
5. all other causes of loss payment is reduced by
15%
Endorsement that modify valuation 1. Manufacturers selling price (finished stock)
provision (6) 2. market value - stock
3. manufactures consequential loss assumption
4. Functional personal property valuation
5. functional building valuation
6. increased cost of loss and related expenses for
green updates
Describe increased cost of includes additional cost to repair or replace with
construction - green endorsement green materials
- coinsurance does not apply
- a limit must be selected for green upgrades
- a percentage must be selected (10%, 20%) and
the most the policy will pay is the amount paid
for the loss plus deductible times the % selected
coinsurance formula did/should x loss
elements of the financial statement Gross Sales - Cost of Goods Sold = Gross Profit
that impact business income loss Gross Profit - Operating expenses = Net Profit
