CIC COMMERCIAL PROPERTY 2022 FINAL
TEST 2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
• determine the amount paid for Extra Expense under the Extra Expense
Coverage Form:.
Answer: Based on the period of restoration, the policy will pay according to
the corresponding percentage option. There are three options:
100%-100%-100%, 40%-80%-100% and 35%-70%-100%. For days 1-30
the first percentage applies, for days 31-60 the second percentage applies,
and days 61 and beyond the third percentage applies. Formula: Limit of
Insurance X Percentage Applicable = Recovery
• Fungus Additional Coverage.
Answer: coverage only applies when fungus is the result of a specified cause
of loss and all reasonable means were used to save the property from further
damage. Includes removal of bacteria. Includes a $15,000 annually on an
aggregate basis. This does not increase the applicable limit of insurance.
This does not affect water damage or collapse. 30 day max BI/Extra expense
coverage.
• Vacancy Loss Condition.
Answer: when the policy is issued to a tenant: building means the unit or
suite leased to tenant. Building is vacant when it does not contain enough
business personal property to conduct customary operations. OR when the
policy is issued to the ower or general lessee of the building: building means
the entire building. Vacant unless at 31% of total square footage is either
rented to a lessee to conduct customary operations or used by building
owner to conduct customary operations. Vacancy provision applies when
vacant for more than 60 days before the loss or damage occurs. Excludes the
following even if it's a covered cause of loss: Vandalism Sprinkler leakage
Building glass breakage Water damage Theft Attempted theft Also states
, that payment the insurer would otherwise pay will be reduced by 15% for all
other covered causes of loss
• Earthquake and Volcanic Eruption Coverage With Percentage Deductible
endorsement.
Answer: included in a time element coverage
• Rain, snow, ice, or sleet exclusion.
Answer: personal property in the open- no coverage for personal property
left in the open to the elements. This is a predictable type of loss. There is
coverage for hail loss.
• what is the limit for the added coverage "preservation of prop".
Answer: 30 day to move and protect property up to the limit of ins. "All
Perils"
• Appraisal Loss Condition for BI/EE Loss Payment.
Answer: appraisal can be requested under this coverage form by either the
Named Insured or the insurer. An umpire will make a final decision.
• What is the limit for out door property coverage extension?.
Answer: $1000 w/$250 per tree or shrub. includes fences, antennas, satelit
dishes. Cause of loss is FLARE Fire, Lightening, Aircraft, Riot/Civil
Comotion, Explosion.
• Business Income Agreed Value Optional BI Coverage.
Answer: provides alternative to coinsurance however it only suspends it.
Requires completion of the Business Income Worksheet.
• what is the added coverage for debri removal.
Answer: $10k over limit or 25% of total loss up to limit.
• What is the limit for the added coverage "polluption clean up".
Answer: $10,000 at the described prem after covered cause of loss.
• Collapse Additional Coverage.
Answer: adds coverage for an abrupt falling down or caving in of a building
or any part of a building with the result of the building or part of the
, building cannot be occupied for intended purpose. Collapse must be result
of one of the four specified causes of loss: building decay, insect or vermin,
use of defective material in construction, use of defective material in
remodeling. Coverage does not apply due to loss of structural integrity.
Coverage applies only if both loss or damage is caused by the abrupt
collapse of a covered building an damaged property is covered property.
The whole building needs to be collapsed for coverage to apply.
• Coveage form includes loss payment at Actual Cash Value or ACV, what is
ACV>.
Answer: The amount of loss minus depreciation. No set formula or
definition for depreciation.
• Name and describe the coverage extensions of Bld and BPP coverage form?
VONPON.
Answer: Valuable Papers, Out door property, Non-owned trailers, Personal
Effects of others, Off Prem PP and Newly acquired BLD & BPP.
• Non-owned Detached Trailers Coverage Extension.
Answer: Coverage Extension states that the Named Insured may apply Your
BPP coverage to loss or damage to non-owned trailers if: the trailer is used
in the Named Insured's business, the trailer is in the care, custody, or control
of the Named Insured at the described premises, the Named Insured has a
contractual responsibility to pay for loss or damage to the trailer Coverage
Extension will NOT pay for loss or damage that occurs: while the trailer is
attached to any motorized vehicle or conveyance, during hitching or
unhitching operations or if the trailer becomes accidentally unhitched Most
that will be paid for this Coverage Extension is $5,000 unless a higher limit
is shown in the Declarations (it is excess coverage over the amount due from
any other insurance covering the property)
• What is included in building coverage.
Answer: Attached to land, Property used to maintain the building, cooking
and ventilation, cooking, laundry equip, floor covering, installed fixtures in
and out (permanently in ground), repairs in progress, outdoor property.
, completed additions,
• When would an insured waive the rights of recovery against others..
Answer: When entered into a contract, before a loss. After a loss to another
insured, business owned, owner of their business or a tenant.
• What is the coverage limit for Non-Owned Trailer Extension?.
Answer: $5000, not owned at premises, used in business, contractual
responsibility, not attached.
• Period of Restoration for Extra Expense Coverage.
Answer: begins immediately after the time of direct physical loss or damage.
The insurer wants money to be spent to keep insured's business going.
• Manufacturer's Selling Price Endorsement.
Answer: adds coverage for the profits in finished goods that have not been
sold.
• What is the limit for the added coverage "edp".
Answer: $2500
• Flood Coverage endorsement.
Answer: Allows the Named Insured to add flood as a Covered Cause of Loss
to business income and extra expense NFIP policies do not include business
income and extra expense without this endorsement
• What are commercial property loss exposures.
Answer: Buildings, personal property of owner, others and off premises,
business income.
• What is included in personal property.
Answer: located in building in open or in a vehicle w/in 100 ft. furniture,
fixtures, machinery and equipment, stock, insureds bpp, labor and materials
used in business, improvements and betterments (part of building and can
not legally remove. leased bpp under a contract.
• Difference in Conditions Policy.
Answer: is a non-filed policy that is written as an insurance solution that is
TEST 2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
• determine the amount paid for Extra Expense under the Extra Expense
Coverage Form:.
Answer: Based on the period of restoration, the policy will pay according to
the corresponding percentage option. There are three options:
100%-100%-100%, 40%-80%-100% and 35%-70%-100%. For days 1-30
the first percentage applies, for days 31-60 the second percentage applies,
and days 61 and beyond the third percentage applies. Formula: Limit of
Insurance X Percentage Applicable = Recovery
• Fungus Additional Coverage.
Answer: coverage only applies when fungus is the result of a specified cause
of loss and all reasonable means were used to save the property from further
damage. Includes removal of bacteria. Includes a $15,000 annually on an
aggregate basis. This does not increase the applicable limit of insurance.
This does not affect water damage or collapse. 30 day max BI/Extra expense
coverage.
• Vacancy Loss Condition.
Answer: when the policy is issued to a tenant: building means the unit or
suite leased to tenant. Building is vacant when it does not contain enough
business personal property to conduct customary operations. OR when the
policy is issued to the ower or general lessee of the building: building means
the entire building. Vacant unless at 31% of total square footage is either
rented to a lessee to conduct customary operations or used by building
owner to conduct customary operations. Vacancy provision applies when
vacant for more than 60 days before the loss or damage occurs. Excludes the
following even if it's a covered cause of loss: Vandalism Sprinkler leakage
Building glass breakage Water damage Theft Attempted theft Also states
, that payment the insurer would otherwise pay will be reduced by 15% for all
other covered causes of loss
• Earthquake and Volcanic Eruption Coverage With Percentage Deductible
endorsement.
Answer: included in a time element coverage
• Rain, snow, ice, or sleet exclusion.
Answer: personal property in the open- no coverage for personal property
left in the open to the elements. This is a predictable type of loss. There is
coverage for hail loss.
• what is the limit for the added coverage "preservation of prop".
Answer: 30 day to move and protect property up to the limit of ins. "All
Perils"
• Appraisal Loss Condition for BI/EE Loss Payment.
Answer: appraisal can be requested under this coverage form by either the
Named Insured or the insurer. An umpire will make a final decision.
• What is the limit for out door property coverage extension?.
Answer: $1000 w/$250 per tree or shrub. includes fences, antennas, satelit
dishes. Cause of loss is FLARE Fire, Lightening, Aircraft, Riot/Civil
Comotion, Explosion.
• Business Income Agreed Value Optional BI Coverage.
Answer: provides alternative to coinsurance however it only suspends it.
Requires completion of the Business Income Worksheet.
• what is the added coverage for debri removal.
Answer: $10k over limit or 25% of total loss up to limit.
• What is the limit for the added coverage "polluption clean up".
Answer: $10,000 at the described prem after covered cause of loss.
• Collapse Additional Coverage.
Answer: adds coverage for an abrupt falling down or caving in of a building
or any part of a building with the result of the building or part of the
, building cannot be occupied for intended purpose. Collapse must be result
of one of the four specified causes of loss: building decay, insect or vermin,
use of defective material in construction, use of defective material in
remodeling. Coverage does not apply due to loss of structural integrity.
Coverage applies only if both loss or damage is caused by the abrupt
collapse of a covered building an damaged property is covered property.
The whole building needs to be collapsed for coverage to apply.
• Coveage form includes loss payment at Actual Cash Value or ACV, what is
ACV>.
Answer: The amount of loss minus depreciation. No set formula or
definition for depreciation.
• Name and describe the coverage extensions of Bld and BPP coverage form?
VONPON.
Answer: Valuable Papers, Out door property, Non-owned trailers, Personal
Effects of others, Off Prem PP and Newly acquired BLD & BPP.
• Non-owned Detached Trailers Coverage Extension.
Answer: Coverage Extension states that the Named Insured may apply Your
BPP coverage to loss or damage to non-owned trailers if: the trailer is used
in the Named Insured's business, the trailer is in the care, custody, or control
of the Named Insured at the described premises, the Named Insured has a
contractual responsibility to pay for loss or damage to the trailer Coverage
Extension will NOT pay for loss or damage that occurs: while the trailer is
attached to any motorized vehicle or conveyance, during hitching or
unhitching operations or if the trailer becomes accidentally unhitched Most
that will be paid for this Coverage Extension is $5,000 unless a higher limit
is shown in the Declarations (it is excess coverage over the amount due from
any other insurance covering the property)
• What is included in building coverage.
Answer: Attached to land, Property used to maintain the building, cooking
and ventilation, cooking, laundry equip, floor covering, installed fixtures in
and out (permanently in ground), repairs in progress, outdoor property.
, completed additions,
• When would an insured waive the rights of recovery against others..
Answer: When entered into a contract, before a loss. After a loss to another
insured, business owned, owner of their business or a tenant.
• What is the coverage limit for Non-Owned Trailer Extension?.
Answer: $5000, not owned at premises, used in business, contractual
responsibility, not attached.
• Period of Restoration for Extra Expense Coverage.
Answer: begins immediately after the time of direct physical loss or damage.
The insurer wants money to be spent to keep insured's business going.
• Manufacturer's Selling Price Endorsement.
Answer: adds coverage for the profits in finished goods that have not been
sold.
• What is the limit for the added coverage "edp".
Answer: $2500
• Flood Coverage endorsement.
Answer: Allows the Named Insured to add flood as a Covered Cause of Loss
to business income and extra expense NFIP policies do not include business
income and extra expense without this endorsement
• What are commercial property loss exposures.
Answer: Buildings, personal property of owner, others and off premises,
business income.
• What is included in personal property.
Answer: located in building in open or in a vehicle w/in 100 ft. furniture,
fixtures, machinery and equipment, stock, insureds bpp, labor and materials
used in business, improvements and betterments (part of building and can
not legally remove. leased bpp under a contract.
• Difference in Conditions Policy.
Answer: is a non-filed policy that is written as an insurance solution that is
