CPP pt.7

Mueller Properties owns a strip shopping center which is insured against the basic causes of loss. Vandals break into the building at night after the businesses close and steal electrical and plumbing fixtures. What is true about coverage for the losses due to this vandalism? -There is no coverage because the building was unattended at the time of the loss. -There is no coverage because vandalism is only covered under the broad form. -There is coverage because vandalism is a covered cause of loss. -The theft of fixtures is not covered, but other building damage is covered.

The theft of fixtures is not covered, but other building damage is covered. -Vandalism is a covered peril in the basic form, but loss due to theft is specifically excluded.

William saw more similarities than differences between the basic and the broad causes of loss forms. Which one of the following causes of loss that is covered under the causes of loss-broad form is also covered under the causes of loss-basic form? -hail -falling objects -water damage -weight of snow, ice, or sleet

hail -Both the basic and broad forms cover windstorm or hail losses.

Nixon Manufacturing has a commercial property policy with the basic causes of loss form. One night, vandals enter the premises, break the windows, paint graffiti on the interior walls, smash shelving, and steal inventory. What coverage, if any, does Nixon have for this loss? -The entire loss is covered under the vandalism cause of loss in the basic causes of loss form. -There is no coverage because vandalism is not a covered cause of loss under the basic causes of loss form. -Only the theft loss is covered; loss due to vandalism is excluded from coverage. -All the damage done by the vandals is covered, but there is no coverage for the theft.

All the damage done by the vandals is covered, but there is no coverage for the theft. -The basic causes of loss form covers a list of named perils that include vandalism-willful and malicious damage to covered property. Theft is not one of the covered perils and is explicitly excluded. Building damage caused by the entry or exit of burglars, however, is covered.

Bernard's Bowling offers a Fourth of July package that includes viewing fireworks from the roof of Bernard's building. During preparations for the event, the roof collapses from the added weight of the items placed on it for the fireworks viewing. Bernard's has a standard commercial property policy with the basic causes of loss form. What coverage, if any, does the policy provide coverage for this collapse loss? -All three causes of loss forms provide coverage for collapse. -Loss from weight of personal property on a roof is covered under the collapse additional coverage. -The basic causes of loss form does not include the collapse additional coverage. -None of the three causes of loss forms provide coverage for collapse.

The basic causes of loss form does not include the collapse additional coverage. -None of the named perils of the causes of loss-basic form apply to this incident. However, collapse is an additional coverage under the broad form and is not excluded by the special form.

Fabian Foods owns and operates a chain of grocery stores, which are insured under a commercial property policy with the basic causes of loss form. A sprinkler system malfunction drenches one of its stores, causing $200,000 in damage. What is true about the store's coverage for the resulting claim? -The loss would be covered because the basic causes of loss form includes sprinkler leakage as a covered cause of loss. -The loss would not be covered because standard commercial property policies do not cover sprinkler leakage losses. -The loss would be covered only if the policy includes a sprinkler leakage endorsement. -This sprinkler leakage loss would be covered only if the special causes of loss form is included in the policy.

The loss would be covered because the basic causes of loss form includes sprinkler leakage as a covered cause of loss. -Because sprinkler leakage is a covered peril under the basic causes-of-loss form, this claim is covered.

Frank accidentally left the window to his office open overnight. Windblown rain entered the window and damaged the floor, furniture, and interior decorations. Frank's firm has a standard commercial property policy with the broad causes of loss form. What is true about the coverage for this damage under his commercial property policy? -The windstorm peril specifically includes damage by windblown rain to building interiors. -Damage caused by the negligence of the insured is excluded. -This damage would be covered only if the policy includes a rain coverage endorsement. -The windstorm peril excludes damage to building interiors unless the roof or walls are damaged by wind or hail.

The windstorm peril excludes damage to building interiors unless the roof or walls are damaged by wind or hail. -Windstorm is a covered peril, but the windstorm peril excludes damage to building interiors unless the roof or walls are damaged by wind or hail.

After a truck damages her building, Juliette reads her commercial package policy to determine whether she should turn in a property claim. What type of form in her policy will help her decide? -coverage form. -conditions form. -causes of loss form. -declarations form.

causes of loss form. -The part of a standard commercial property policy that establishes what causes of loss are covered is called a causes of loss form.

Even though her mother, Nona recommended broad form coverage, Marissa wanted to save money and bought a less-costly commercial property coverage. Which one of the following causes of loss is covered under the causes of loss-broad form but not under the causes of loss-basic form? -sinkhole collapse -falling objects -sprinkler leakage -volcanic action

falling objects -Falling objects is one of the additional causes of loss that is covered by the broad form but not the basic form.

Commercial property policies that individually list the covered causes of loss are said to provide -named perils coverage. -special perils coverage. -listed perils coverage. -all risks coverage.

named perils coverage -The Causes of Loss-Basic Form (CP 10 10) and the Causes of Loss-Broad Form (CP 10 20) provide named perils coverage.