Commercial Property Insurance

Under the building and personal property coverage form, what is the limit available under fire department service charge

$1,000

In the business income coverage form, period of restoration begins _______ time after loss?

72 hours

All the following are included in the common policy conditions except: A. Transfer of your rights and duties under the policy B. Premium C. Examination of your books and records D. Appraisal

D. Appraisal

The purpose of extra expense coverage is to:

Keep the business in business to some extent

Whats the limit of coverage for business personal property away from the premises under the business and personal property coverage form?

$10,000

Under the building and personal property coverage form, what is the limit for newly acquired business personal property?

$100,000

Under the basic causes of loss form, Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria is provided up to what limit?

$15,000 aggregate for 12 months

The building and personal property coverage form, extensions of coverage, what is the limit for newly acquired or constructed buildings

$250,000

What is the standard deductible in a CPP?

$500

Under the building and personal property coverage form, if a building valued at $100,000 suffers a $50,000 damage due to fire, and the insured incurs a $15,000 debris removal expense, how much will the insurer pay?

$62,500 $50,000 + 12,500 (25% of the debris removal expense)

Coverage for business personal property under the Business Personal Property Coverage Form applies to property of the named insured that is on or within how many feet of the described premises?

100

A commercial building is vacant beyond 60 days and incurs a covered loss. The loss is not excluded under the vacancy provision. The company will reduce their payment by how much?

15%

How much can be paid under the Business and Personal Property Coverage Form for debris removal?

25% of the dirt damage to the property insured (loss)

Under the building and personal property coverage form, what is the limit for preservation of property?

30 days

A building is considered vacant unless what percentage of the building's total square footage is rented or used to conduct customary operations?

31%

How many cause of loss forms are available under the Building and Personal Property coverage form?

4; Basic, Broad, Special, Earthquake

Builders risk coverage may be written to include:

A completed value form

What should a business that cancels their Commercial Property Coverage in the middle of the policy period expect to receive?

A short rate premium refund

There are standard coverages under a boiler and machinery coverage form. In the case of loss, which of the following is paid first? A. Damage to the insured's property B. Increased costs due to any ordinance or law C. Expediting expenses D. Defense coverage

A. Damage to the insured's property

The building and personal property coverage form covers all of the following except: A. Liability B. Building C. Business personal property D. Personal property of others

A. Liability

Which of the following is not excluded in the Cause of Loss- Basic Form of the Commercial Property Coverage Part? A. Riot B. Governmental action C. Steam boiler explosion D. Ordinance or law

A. Riot

Extra expense insurance covers which of the following? A. The additional cost of continuing a business after a loss B. The extra money to cover the loss of business C. The extra money to cover the landlord for their loss of rents D. The additional cost of completing an audit

A. The additional cost of continuing a business after a loss

In the cause of loss- basic form, which peril is not covered?

Accidental discharge, weight of ice, snow and sleet, and falling objects

The optional Replacement cost coverage, added to the building and personal property coverage form, excludes all the following except: A. Personal property of others B. Work of art, antiques, rare articles C. Stock, unless the stock option is shown in declarations D. All of the above

All of the above

The building and business personal property form excludes coverage for which of the following? A. attached signs B. a rowboat in use on the company campus C. business personal property within 100 feet of the insured premises D. Inventories of stock held for sale

B. a rowboat in use on the company campus

The condo association coverage form is used in place of what?

Building and Personal Property Coverage Form

The condo association coverage form is used in place of which coverage form when insuring a condo building by the association

Building and Personal Property Coverage Form

The commercial Building and Personal Property Coverage form covers which kind of outdoor property against loss? A. Fences B. Watercraft held for sale C. Furniture D. Signs not attached to the building

C. Furniture

The coverage parts available on a commercial package policy include all of the following except: A. Builders risk coverage part B. Extra expense coverage part C. HO-6 Unit-owners coverage part D. Commercial general liability coverage part

C. HO-6 Unit-owners coverage part

The ordinance or Law coverage endorsement covers each of the following losses except: A. Demolition of the undamaged parts of a building B. Increased cost of repairing damaged parts of the building C. Loss of value in the damaged portion of the building D. Clearance of the undamaged parts of a building

C. Loss of value in the damaged portion of the building

The Builders Risk Coverage Form is written on which of the following? A. named perils basis B. open perils basis C. completed value basis D. replacement cost basis

C. completed value basis

All the following are excluded in the basic cause of loss form except: A. earth movement B. governmental action C. volcanic eruption D. ordinance or law

C. volcanic eruption

The common policy conditions in commercial property insurance include:

Cancelation, changes, examination of the insureds books, inspections and surveys, premiums, transfer of your rights and duties under the policy

All the following appears on the common policy declarations page except: A. Name of the insured B. Policy period C. Description of the business D. Conditions

Conditions

The builder's risk coverage form automatically ends at the earliest of all the following except: A. Policy expires B. Property is abandoned C. Property is sold D. 90 days after construction is complete

D. 90 days after construction is complete

Under the building and personal property coverage form, business personal property owned by the insured includes all the following except: A. furnitures and fixtures B. machinery equipment C. tenants improvements and betterments D. Animals, unless they're owned by others and boarded by the named insured

D. Animals, unless they're owned by others and boarded by the named insured

To include the causes of loss- earthquake and volcanic eruption to the building and personal property coverage form, which of the following causes of loss forms would have be added: A. basic form B. Broad form C. Special form D. Any one of the above

D. Any one of the above

The basic cause of loss form includes all the following perils, except: A. Sprinkler leakage B. Riot C. Windstorm D. Falling objects

D. Falling objects

The building and personal property coverage form provides coverage for all of the following except: A. Central air-conditioning system B. Business personal property C. Yard fixtures D. Growing crops and lawns for business purposes

D. Growing crops and lawns for business purposes

The common policy declarations page of a CPP includes all of the following EXCEPT: A. The named insured B. The policy term C. The total premium charged D. The policy deductible

D. The policy deductible

Which of the following are key components of CPP? A. The verbal consent of the insured B. The written consent of the insured's legal rep C. The written consent of the insured D. The written consent of the insurance company

D. The written consent of the insurance company

The cause of loss- Basic Form provides limited coverage for fungus, wet rot, dry rot and bacteria the amount of $15,000 for all covered causes of loss. What is the period this coverage is provided?

During a 12 month period that begins with the policy's inception date

To complete the building and personal property coverage form, the insured must chose one cause of loss form except:

Earthquake cause of loss

The difference between the basic and broad cause of loss form are found in the perils. What are the perils included in the broad form, but not the basic?

Falling objects, weight of ice, snow and sleet, accidental discharge

The condo commercial unit-owners coverage form covers each of the following, except

Personal property

Under the property section of a building and personal property coverage form, which of the following forms, if any, would cover loss to merchandise caused by burglary?

Special form only

What is the deductible clause intended to reduce?

The number of small losses

Personal effects of the insured and personal property of others in the insured's care, custody, and control are covered up to $2,500 at each described location, under the building and personal property coverage form. Which peril is not included?

Theft

The purpose of the interline endorsement is

to prevent duplication