CIC COMMERCIAL PROPERTY 2022
PRACTICE EXAMINATION 2026 QUESTIONS
WITH ANSWERS GRADED A+
• Pullutants.
Answer: Means any solid, liquid, gaseous or thermal irritant or contaminant,
including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste.
Waste includes materials to be recycled, reconditioned or reclaimed.
• Building and Personal Property Coverage Form Agreed Value.
Answer: Suspends Coinsurance THIS DOES NOT REMOVE THE
COINSURANCE...it suspends it! Has an expiration date There is an
additional premium charge of 5%
• Stock.
Answer: Merchandise held in storage or for sale, raw materials and
in-process or finished goods, including supplies used in their packing or
shipping.
• Endorsements That modify Your Business Personal Property Additional
Property Not Covered.
Answer: The insured operates a large stone quarry. Their "stock" consists of
large amounts of stone aggregate, used for making concrete, both loose &
attached to the rock face. The stone is constantly exposed to the elements &
faces very little risk from a Covered Cause of Loss. Using this endorsement,
the Named Insured can add "stock" to the Property Not Covered. The
Named Insured here would not include the value of the "stock' in their Limit
Of Insurance.
• Additional Coverages Debris Removal Formula.
Answer: Limit of Insurance 90,000 Deductible 500 Covered Loss 50,000
Loss Payable 49,500 (50,000-500) Debris Removal Expense: 10,000 49,500
+500=50K x25% = 12,500 "could be" pd for debris Debris Removal
, Payable: 10,000 Loss of 49,500+ Debris Expense 10,000= 59,500
• Business Income.
Answer: If Business Income Coverage is also provided, these Optional
Coverages entries also apply on the Declarations in addition to Business
Income Agreed Value Monthly Limit of Indemnity Maximum Period of
Indemnity Extended Period of Indemnity
• Building and Personal Property Coverage Form Personal Property of Others.
Answer: Applies to property entrusted to the Named Insured - to work on
-on consignment -sold, but not delivered -leased to -property of the Named
Insured's employees kept at work Only covers property for direct damage,
not loss of use
• Property of Others.
Answer: Entrusted to the Named Insured: To work on on consignment sold,
but not delivered leased to me property of the Named Insured's employees
kept at work covers property for direct damage, not loss of use.
• Peak Season CP 12 30.
Answer: -Allows named insured to increase coverage for a specified number
of days to reflect predictable seasonal increases in personal property
inventory
• Dependent Properties Exposure.
Answer: BI from Dependent Properties (Basic) CP 15 09 or 15 08 (Broad) 1.
Contributing Locations 2. Recepient Locations 3. Manufacturing Locations
.4 Leader Locations
• Valuable Papers and Records - Cost of Research.
Answer: 1 of 7 coverage extensions. Cost to replace or restore. Not
electronic data. Named perils only. Not more than $2500 Higher Limits CP
04 08
• It's Property of Others.
Answer: If I'm just responsible for damages (copier)
, • Components of "Common Policy Dec" IL DS 00 09 08.
Answer: 1. Named Insured 2. Mailing Address 3. Policy Period 4. Biz
Description 5. Premium for Coverage Parts 6. Forms Applicable
• Vacancy condition.
Answer: Tenant - bldg is vacant when it doesn't containt enough BPP to
conduct customary operations Owner or Lessee - Vacant unless at least 31%
sq footage is rented If vacant for more than 60 consecutive days, some
Causes of Loss excluded (vandalism, sprinkler leakage, theft, etc), payment
reduced by 15% by other Causes of Loss (Fire, etc) Vacancy Permit CP 04
50 - allows vacancy for specified period beyond 60 days. Can still exclude
vandalism... Vacancy Changes CP 04 60 - Used to change 31% min use
requirement
• Additional Building Property CP 14 15.
Answer: 1. Used to clarify certain items which might be in a "gray area" are
covered under Building. -Permanently installed machinery and equipment
-Fixtures, including outdoor fixtures 2. Covers certain BPP under Building
(i.e. freezer cases in supermarkets, large production equipment) 3. Must
already have coverage for Building
• Coverage Extensions Personal Effects and Property of Others.
Answer: 1. NO Theft coverage for personal effects 2. Personal property of
others in Named Insured's care, custody, or control CCC NOT more than
$2,500
• Additional Coverages.
Answer: 1. Collapse 2. Fungus (only when result of "specified causes of
loss") other than fire or flood. Up to $15K --CP0431 to increase. Addl: 1.
Property in Transit up to $5K (other than CCC of salesperson) 2. Cost to
tear out and replace 3. Glass
• Building and personal Property Coverage Form Property Not Covered
Endorsement available: Additional Covered Property.
Answer: -Expands the definition of Covered Property -Used to buy back
certain property that is included in Property Not covered -Include the values
PRACTICE EXAMINATION 2026 QUESTIONS
WITH ANSWERS GRADED A+
• Pullutants.
Answer: Means any solid, liquid, gaseous or thermal irritant or contaminant,
including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste.
Waste includes materials to be recycled, reconditioned or reclaimed.
• Building and Personal Property Coverage Form Agreed Value.
Answer: Suspends Coinsurance THIS DOES NOT REMOVE THE
COINSURANCE...it suspends it! Has an expiration date There is an
additional premium charge of 5%
• Stock.
Answer: Merchandise held in storage or for sale, raw materials and
in-process or finished goods, including supplies used in their packing or
shipping.
• Endorsements That modify Your Business Personal Property Additional
Property Not Covered.
Answer: The insured operates a large stone quarry. Their "stock" consists of
large amounts of stone aggregate, used for making concrete, both loose &
attached to the rock face. The stone is constantly exposed to the elements &
faces very little risk from a Covered Cause of Loss. Using this endorsement,
the Named Insured can add "stock" to the Property Not Covered. The
Named Insured here would not include the value of the "stock' in their Limit
Of Insurance.
• Additional Coverages Debris Removal Formula.
Answer: Limit of Insurance 90,000 Deductible 500 Covered Loss 50,000
Loss Payable 49,500 (50,000-500) Debris Removal Expense: 10,000 49,500
+500=50K x25% = 12,500 "could be" pd for debris Debris Removal
, Payable: 10,000 Loss of 49,500+ Debris Expense 10,000= 59,500
• Business Income.
Answer: If Business Income Coverage is also provided, these Optional
Coverages entries also apply on the Declarations in addition to Business
Income Agreed Value Monthly Limit of Indemnity Maximum Period of
Indemnity Extended Period of Indemnity
• Building and Personal Property Coverage Form Personal Property of Others.
Answer: Applies to property entrusted to the Named Insured - to work on
-on consignment -sold, but not delivered -leased to -property of the Named
Insured's employees kept at work Only covers property for direct damage,
not loss of use
• Property of Others.
Answer: Entrusted to the Named Insured: To work on on consignment sold,
but not delivered leased to me property of the Named Insured's employees
kept at work covers property for direct damage, not loss of use.
• Peak Season CP 12 30.
Answer: -Allows named insured to increase coverage for a specified number
of days to reflect predictable seasonal increases in personal property
inventory
• Dependent Properties Exposure.
Answer: BI from Dependent Properties (Basic) CP 15 09 or 15 08 (Broad) 1.
Contributing Locations 2. Recepient Locations 3. Manufacturing Locations
.4 Leader Locations
• Valuable Papers and Records - Cost of Research.
Answer: 1 of 7 coverage extensions. Cost to replace or restore. Not
electronic data. Named perils only. Not more than $2500 Higher Limits CP
04 08
• It's Property of Others.
Answer: If I'm just responsible for damages (copier)
, • Components of "Common Policy Dec" IL DS 00 09 08.
Answer: 1. Named Insured 2. Mailing Address 3. Policy Period 4. Biz
Description 5. Premium for Coverage Parts 6. Forms Applicable
• Vacancy condition.
Answer: Tenant - bldg is vacant when it doesn't containt enough BPP to
conduct customary operations Owner or Lessee - Vacant unless at least 31%
sq footage is rented If vacant for more than 60 consecutive days, some
Causes of Loss excluded (vandalism, sprinkler leakage, theft, etc), payment
reduced by 15% by other Causes of Loss (Fire, etc) Vacancy Permit CP 04
50 - allows vacancy for specified period beyond 60 days. Can still exclude
vandalism... Vacancy Changes CP 04 60 - Used to change 31% min use
requirement
• Additional Building Property CP 14 15.
Answer: 1. Used to clarify certain items which might be in a "gray area" are
covered under Building. -Permanently installed machinery and equipment
-Fixtures, including outdoor fixtures 2. Covers certain BPP under Building
(i.e. freezer cases in supermarkets, large production equipment) 3. Must
already have coverage for Building
• Coverage Extensions Personal Effects and Property of Others.
Answer: 1. NO Theft coverage for personal effects 2. Personal property of
others in Named Insured's care, custody, or control CCC NOT more than
$2,500
• Additional Coverages.
Answer: 1. Collapse 2. Fungus (only when result of "specified causes of
loss") other than fire or flood. Up to $15K --CP0431 to increase. Addl: 1.
Property in Transit up to $5K (other than CCC of salesperson) 2. Cost to
tear out and replace 3. Glass
• Building and personal Property Coverage Form Property Not Covered
Endorsement available: Additional Covered Property.
Answer: -Expands the definition of Covered Property -Used to buy back
certain property that is included in Property Not covered -Include the values
