1 Overview of Commercial Property Insurance

Which one of the following is a required component of the commercial property coverage part that specifies the perils covered? Select one: A. Commercial property coverage form B. Causes of loss form C. Commercial Property Conditions D. Perils specified form

B. Causes of loss form CorrectCorrect. The causes of loss form is a required component of the commercial property coverage part that specifies the perils covered.

Which one of the following contains an insuring agreement, delineation of the property covered and not covered, and additional coverages and coverage extensions? Select one: A. Commercial property declarations B. Commercial property coverage forms C. Causes of loss forms D. Supplemental declarations forms

B. Commercial property coverage forms CorrectCorrect. Commercial property coverage forms contain an insuring agreement, delineation of the property covered and not covered, and additional coverages and coverage extensions.

A commercial package policy (CPP) component that covers buildings and business personal property is referred to as a Select one: A. Building and contents form. B. Commercial property coverage part. C. Commercial general policy. D. Building and Personal Property Coverage Form (BPP) endorsement.

B. Commercial property coverage part.

Which one of the following is the correct term for documents that are used to tailor commercial property coverage to meet the specialized needs of particular insureds or eliminate exposures that underwriters are not willing to insure? Select one: A. Supplemental declarations B. Endorsements C. Optional exclusion forms D. Commercial Property Conditions

B. Endorsements

A Commercial Package Policy (CPP) premium may be modified by a package modification factor. This factor Select one: A. Provides a charge for coverage extensions. B. Is a discount justified by the greater efficiency in providing a package policy. C. Is based on the amount of coverage. D. Is the same for insurers in all states.

B. Is a discount justified by the greater efficiency in providing a package policy.

Which one of the following lists the covered causes of loss (basic, broad, or special); the deductible amount; and any optional coverages? Select one: A. Commercial property conditions B. Commercial property coverage forms C. Commercial property declarations D. Causes of loss forms

C. Commercial property declarations CorrectCorrect. The commercial property declarations page lists the covered causes of loss (basic, broad, or special); the deductible amount; and any optional coverages.

All property can be classified as real property or personal property. In this context, all of these are examples of real property, EXCEPT: a A building's heating equipment b A standalone, private garage adjacent to a dwelling c Underground steam pipes d Oil while being transported through an underground pipeline

d Oil while being transported through an underground pipeline

The Commercial Property Conditions -Are an optional component of the commercial property coverage part. -Are printed within each of the commercial property coverage forms. -Apply to all commercial property coverage forms unless the form contains a condition to the contrary. -Require reiteration in each coverage form.

-Apply to all commercial property coverage forms unless the form contains a condition to the contrary.

What page includes this information? a. A description of the property insured b. The kinds and amounts of coverage provided and the covered causes of loss c. A list of mortgagees, if any d. The deductible amount e. A list of the property coverage forms and endorsements attached to the policy f. The applicable coinsurance percentage(s) g. Any optional coverages

A commercial property declarations page contains information that pertains specifically to property insurance:

Package modification factors for the Commercial Package Policy (CPP) often Select one: A. Specify that the policy can be changed only by a written endorsement. B. Provide a premium discount for the insured. C. Provide a method for the insured to transfer rights and duties under the policy. D. Specify the endorsements that modify coverage parts in the policy.

B. Provide a premium discount for the insured.

There must be at least how many coverage parts in an ISO Commercial Package Policy (CPP)? Select one: A. One B. Two C. Three D. Four

B. Two A Commercial Package Policy must have at least two coverage parts.

If an insured fast food franchise cannot list all of its locations on the commercial property declarations page, which one of the following options would be most appropriate? Select one: A. Cover all remaining locations not listed on the first declarations page under a second insurance policy. B. Attach an additional commercial property coverage form to the policy. C. Add supplemental declarations on a separate page. D. Add a notation on the declarations page that states "Plus all other locations owned by the named insured."

C. Add supplemental declarations on a separate page.

Which one of the following statements about commercial property coverage forms is correct? Select one: A. Commercial property coverage forms cannot be used to insure the loss of business income. B. Commercial Property Conditions specify the causes of loss for which the described property is covered. C. Specialized coverage forms exist for insuring buildings under construction, condominium association buildings, and the property of condominium commercial unit owners. D. A commercial property coverage part cannot include more than one commercial property coverage form.

C. Specialized coverage forms exist for insuring buildings under construction, condominium association buildings, and the property of condominium commercial unit owners. CorrectCorrect. Specialized coverage forms exist for insuring buildings under construction, condominium association buildings, and the property of condominium commercial unit owners.

Which one of the following best describes the components of a coverage part for an ISO Commercial Package Policy (CPP)? Select one: A. One or more coverage forms, applicable conditions, and restatement of the common policy exclusions B. Declarations page, restatement of the common policy exclusions, and the duties in the event of a loss C. One or more coverage forms, applicable endorsements, and the duties in the event of a loss D. Declarations page, one or more coverage forms, and applicable endorsements

D. Declarations page, one or more coverage forms, and applicable endorsements

Generally, more than one causes of loss form is used in a commercial property coverage part for which one of the following reasons? Select one: A. Most insureds would like to cover their personal effects for loss by theft. B. Business personal property, which is more subject to loss, is always insured on a more restricted basis than are buildings. C. Using multiple causes of loss forms in a single policy is standard industry practice. D. The underwriter is reluctant to provide the broader coverages for certain types of property.

D. The underwriter is reluctant to provide the broader coverages for certain types of property.

The Commercial Package Policy (CPP) program includes several different ______

The Commercial Package Policy (CPP) program includes several different commercial property coverage forms.

What are the types of cause of loss forms?

The three types of causes of loss forms—basic, broad, and special—allow the insured to select, or the underwriter to offer, a range of covered perils.

A commercial property coverage form typically contains these elements:

• Insuring agreement • Delineation of the property covered and not covered • Additional coverages and coverage extensions • Provisions and definitions that apply only to that coverage form