Section 9 quiz questions

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

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

Which one of the following is an example of a loss that would fall under the smoke cause of loss under the commercial property policy? Select one: A. Smoke discharge due to a sudden furnace malfunction B. Smoke from industrial operations C. Gradual smoke damage due to friendly fires D. Smoke damage due to a hostile fire

A. Smoke discharge due to a sudden furnace malfunction

The Causes of Loss—Special Form provides coverage for which one of the following scenarios? Select one: A. Faulty or inadequate planning zoning, surveying, repair, construction or maintenance B. Acts or decisions, including the failure to act or decide, by any person, group, organization, or governmental body C. The melting ice, sleet, or snow on the building or structure D. Weather conditions that contribute to other excluded causes of loss

C. The melting ice, sleet, or snow on the building or structure

The Causes of Loss—Special Form is a commercial property form that covers causes of loss that are not specifically excluded. One reason to purchase this form is Select one: A. It shifts the burden of proof to the insurer to prove a loss is excluded. B. It has fewer exclusions and limitations than the other causes of loss forms. C. It lists far more covered perils than the other commercial forms. D. It is less expensive than the other policy causes of loss forms.

A. It shifts the burden of proof to the insurer to prove a loss is excluded.

Which one of the following Additional Coverages is covered under the Causes of Loss—Special Form but not under the Causes of Loss—Broad Form? Select one: A. "Fungus", Wet Rot, Dry Rot and Bacteria B. Property in Transit C. Falling Objects D. Collapse

B. Property in Transit

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

An exclusion contained in the Causes of Loss—Basic Form eliminates coverage for damage caused by which one of the following? Select one: A. Sprinkler leakage B. Fire that results from artificially generated electric currents C. Rupture or bursting of water pipes caused by any covered cause of loss D. Mechanical breakdown, including rupture or bursting caused by centrifugal force

D. Mechanical breakdown, including rupture or bursting caused by centrifugal force

Sizemore Industries has a Building and Personal Property Coverage Form (BPP) that covers four buildings at one location. Each building is insured for a separate limit of $150,000, and a $5,000 deductible applies. A windstorm causes $4,000 worth of damage to each of the buildings for a combined total of $16,000 of damage. How much will the insurer pay for Sizemore's losses to its buildings? Select one: A. $0 B. $11,000 C. $14,750 D. $16,000

A. $0

Which one of the following is covered under the Building and Personal Property Coverage Form (BPP) as business personal property? Select one: A. Building contents such as furniture B. Permanently installed machinery and equipment C. Completed additions to a building D. Fixtures, including outdoor fixtures

A. Building contents such as furniture

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

A. Causes of loss form

Which one of the following statements is correct with respect to the covered causes of loss under the Causes of Loss—Basic Form? Select one: A. Explosion includes the explosion of gases or fuel in a furnace or flue. B. Smoke covers damage by smoke from industrial operations or agricultural smudging. C. Lightning includes artificially generated electrical current. D. Vandalism includes loss by theft.

A. Explosion includes the explosion of gases or fuel in a furnace or flue.

Which one of the following is correct with respect to the Increased Cost of Construction additional coverage of the Building and Personal Property Coverage Form (BPP)? Select one: A. It provides a small amount of insurance to cover the increased cost to comply with ordinances or laws regulating the repair, rebuilding, or replacement of covered buildings. B. The amount of insurance is equal to 25 percent of the amount of insurance on the building or $50,000, whichever is less. C. It does not apply if the replacement cost option has been selected. D. It includes coverage for the cost to demolish the undamaged portion of the structure and remove its debris.

A. It provides a small amount of insurance to cover the increased cost to comply with ordinances or laws regulating the repair, rebuilding, or replacement of covered buildings.

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

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

Worldwide Warehousing has a Building and Personal Property Coverage Form (BPP) with a $1,000,000 limit on a building and a $5,000 deductible. The warehouse suffers a $1,010,000 fire loss. Which one of the following amounts will Worldwide's insurer pay? Select one: A. $ 995,000 B. $1,000,000 C. $1,005,000 D. $1,010,000

B. $1,000,000

Billy owns a baseball souvenir store in Cooperstown, NY. He insured his store under a Building and Personal Property Coverage Form (BPP) with a $275,000 limit and a $1,500 deductible. A large fire in the store caused significant damage amounting to $310,000 in covered damages. How much would Billy's insurer pay under his BPP? Select one: A. $273,500 B. $275,000 C. $308,500 D. $310,000

B. $275,000

The commercial property policy Causes of Loss Form that provides coverage for "risks of direct physical loss," unless excluded or limited by the policy is called the Select one: A. Causes of Loss—All Risks Form. B. Causes of Loss—Special Form. C. Causes of Loss—Broad Form. D. Causes of Loss—Basic Form.

B. Causes of Loss—Special Form.

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

B. Commercial property coverage part.

Which one of the following perils would be covered under the commercial property policy broad form but not covered under the basic form? Select one: A. Damage due to explosion. B. Damage due to weight of snow C. Damage due to vehicles D. Damage due to vandalism

B. Damage due to weight of snow

Which one of the following statements is correct with respect to the Preservation of Property additional coverage of the Building and Personal Property Coverage Form (BPP)? Select one: A. It does not provide protection while the property is in transit to the new location. B. It protects against "any direct physical loss or damage" and is not limited to either the covered causes of loss or locations stipulated in the coverage form. C. The protection provided under this additional coverage is over and above the limits of insurance stated in the declarations. D. It extends the policy to protect covered property for up to 180 days at the new location.

B. It protects against "any direct physical loss or damage" and is not limited to either the covered causes of loss or locations stipulated in the coverage form.

Which one of the following is an exclusion unique to the Causes of Loss—Special Form? Select one: A. Rupture or bursting of water pipes B. Smog C. War D. Mudslide or mudflow

B. Smog

Which one of the following is an example of a loss that would fall under the smoke cause of loss under the commercial property policy? Select one: A. Smoke damage due to a hostile fire B. Smoke discharge due to a sudden furnace malfunction C. Gradual smoke damage due to friendly fires D. Smoke from industrial operations

B. Smoke discharge due to a sudden furnace malfunction

"Merchandise held in storage or for sale, raw materials and in-process or finished goods, including supplies used in their packing or shipping" is the Building and Personal Property Coverage Form's (BPP) definition for which one of the following? Select one: A. Business personal property B. Stock C. Contents D. Inventory

B. Stock

Under which one of the following causes of loss forms is the burden of proof on the insurer to prove why coverage does not apply? Select one: A. The Causes of Loss—Broad Form B. The Causes of Loss—Special Form C. The Causes of Loss—All Risks Form D. The Causes of Loss—Basic Form

B. The Causes of Loss—Special Form

Which one of the following statements best describes the Causes of Loss—Special Form? Select one: A. The Special Form contains exclusions that are covered in the Basic and Broad Forms for certain hard to insure perils. B. The Special Form provides coverage for direct physical losses other than those that are specifically excluded. C. The placement of the "burden of proof" rests with the insured as opposed to the insurer. D. The Special Form is designed to cover any loss that would not be covered by the Basic and Broad Forms.

B. The Special Form provides coverage for direct physical losses other than those that are specifically excluded.

Which one of the following is a covered cause of loss under the Causes of Loss—Basic Form? Select one: A. Falling objects B. Volcanic action C. Water damage D. Weight of ice, snow, or sleet

B. Volcanic action

Jim's Barber Shop has a Building and Personal Property Coverage Form (BPP) with a $100,000 limit on the building and a $1,000 deductible. The building suffers a $15,000 fire loss. Which one of the following amounts will Jim's insurer pay? Select one: A. $ 1,000 B. $10,000 C. $14,000 D. $15,000

C. $14,000

The owners of Uncle Reggie's Steakhouse are insured under a Building and Personal Property Coverage Form (BPP) that covers their building and business personal property for $350,000 and $100,000, respectively. The policy has a $2,500 deductible. A fire results in $350,000 worth of damage to the building and a $70,000 loss of business personal property. In what amounts should the policy provide coverage for this loss? Select one: A. $350,000 Building and $70,000 Property B. $374,500 Building and $67,500 Property C. $347,500 Building and $70,000 Property D. $350,000 Building and $65,000 Property

C. $347,500 Building and $70,000 Property

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. Causes of loss forms B. Supplemental declarations forms C. Commercial property coverage forms D. Commercial property declarations

C. Commercial property coverage forms

Which one of the following statements is correct with respect to the Building and Personal Property Coverage Form (BPP)? Select one: A. The policy limit is the maximum the insurer will pay over any one year. B. No payments under coverage extensions are made if the limit of insurance in the declarations is paid in full. C. Due to coverage extensions, it is possible for the total payment for one loss to exceed the policy limit. D. The deductible is subtracted from the policy limit.

C. Due to coverage extensions, it is possible for the total payment for one loss to exceed the policy limit.

Alterations or additions made to the building at the expense of an insured who does not own the building and who cannot legally remove them are referred to as Select one: A. Personal property of others. B. Building fixtures and fittings. C. Improvements and betterments. D. Leaseholder enhancements.

C. Improvements and betterments.

Which one of the following statements is correct with respect to the Newly Acquired or Constructed Property extension of coverage of the Building and Personal Property Coverage Form (BPP)? Select one: A. It specifically excludes coverage for a newly acquired or constructed building at any location if that building will be used as a warehouse. B. This extension applies to buildings only and does not provide any coverage for business personal property. C. It covers newly acquired buildings, provided the purpose of the newly acquired building is similar to the use of the building described in the declarations. D. It provides automatic coverage for a new building being constructed by or for the insured anywhere within the coverage territory.

C. It covers newly acquired buildings, provided the purpose of the newly acquired building is similar to the use of the building described in the declarations.

Which one of the following statements is correct with respect to the Causes of Loss—Special Form? Select one: A. It covers theft by looting at the time of a riot or civil commotion, but it does not cover theft under any other circumstances. B. It includes a much longer list of specified causes of loss than either the basic or the broad form. C. It shifts the burden of proof as to whether a loss is covered from the insured to the insurer. D. It specifically excludes all loss or damage caused by or resulting from vehicles owned by the named insured or operated in the course of the named insured's business.

C. It shifts the burden of proof as to whether a loss is covered from the insured to the insurer.

Which one of the following statements is correct with respect to the Commercial Property Conditions? Select one: A. They provide definitions for words and phrases used in the policy to which they are attached. B. They are printed in bold type on the commercial property declarations page. C. They apply to all coverage forms included in a commercial property coverage part, unless a coverage form contains a condition to the contrary. D. They are an optional component of the commercial property coverage part, used at the underwriter's discretion.

C. They apply to all coverage forms included in a commercial property coverage part, unless a coverage form contains a condition to the contrary.

Ace Accounting has a Building and Personal Property Coverage Form (BPP) through Delta Insurance with a limit of $300,000 on business personal property. The insured's computer system is valued at $150,000 and it is insured for $100,000 under a separate electronic data processing (EDP) equipment policy issued by Omicron Insurance. The computer system is totally destroyed by fire, a cause of loss insured under both policies. Which one of the following correctly describes how the loss would be settled? Select one: A. Because Omicron and Delta both cover the equipment, each insurer would pay half of the loss, or $75,000. B. The BPP specifically excludes property otherwise insured, so Omicron would pay $100,000 and the insured would have to pay the remaining $50,000 of the loss. C. The BPP policy is primary and would pay the full amount of the loss because it is within the BPP policy limits. D. Because Omicron's policy more specifically describes the computer system, it must pay its limit before Delta pays anything; Delta would pay the remaining $50,000.

D. Because Omicron's policy more specifically describes the computer system, it must pay its limit before Delta pays anything; Delta would pay the remaining $50,000.

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. Causes of loss forms C. Commercial property coverage forms D. Commercial property declarations

D. Commercial property declarations

Which one of the following causes of loss is covered by the commercial property policy Causes of Loss—Broad Form but not the Basic Form? Select one: A. Lightning B. Windstorm or hail C. Aircraft or vehicles D. Falling objects

D. Falling objects

Which one of the following is covered by the Causes of Loss—Special Form but not by the Causes of Loss—Basic Form? Select one: A. Mechanical breakdown B. Settling, cracking, shrinking, or expansion C. Smog D. Melting of ice, sleet, or snow on the building structure

D. Melting of ice, sleet, or snow on the building structure

Under the Building and Personal Property Coverage Form (BPP), which one of the following extensions covers loss only by fire, lightning, explosion, riot or civil commotion, and aircraft? Select one: A. Property Off-Premises B. Newly Acquired or Constructed Property C. Personal Effects and Property of Others D. Outdoor Property

D. Outdoor Property

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. Business personal property, which is more subject to loss, is always insured on a more restricted basis than are buildings. B. Using multiple causes of loss forms in a single policy is standard industry practice. C. Most insureds would like to cover their personal effects for loss by theft. 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.

A description of the property insured, a list of mortgagees, and the applicable coinsurance percentage(s) are shown on which one of the following documents? Select one: A. Causes of loss forms B. Commercial Property Conditions C. Commercial property declarations D. Commercial property coverage forms

C. Commercial property declarations

Which one of the following is one of the covered causes of loss in the commercial property policy Causes of Loss—Basic form? Select one: A. Weight of ice B. Falling objects C. Water damage D. Vandalism

D. Vandalism

Which one of the following statements is correct with respect to the covered causes of loss under the Causes of Loss—Basic Form? Select one: A. Smoke covers damage by smoke from industrial operations or agricultural smudging. B. Vandalism includes loss by theft. C. Lightning includes artificially generated electrical current. D. Explosion includes the explosion of gases or fuel in a furnace or flue.

D. Explosion includes the explosion of gases or fuel in a furnace or flue.

Which one of the following statements is correct with respect to the Causes of Loss-Basic Form? Select one: A. The Water exclusion contains an exception for damage due to the backing up of sewers, drains, or sumps. B. The War and Military Action exclusion eliminates coverage for loss caused by acts of terrorism, such as the terrorist attacks of September 11, 2001. C. It excludes loss caused by power failure only if the damage causing such failure occurs on the described premises. D. It excludes loss caused by earth movement, other than by sinkhole collapse.

D. It excludes loss caused by earth movement, other than by sinkhole collapse.

Paris Cuisine, a fine-dining restaurant, rents space in a commercial building, which is insured by its owner. Paris Cuisine spends $50,000 on wallpaper, floor coverings, windows, and other improvements that would remain in the building if Paris Cuisine were to move out. Paris Cuisine's interest in these improvements is insured under which one of the following? Select one: A. The building portion of Paris Cuisine's Building and Personal Property Coverage Form (BPP) B. The property of others section of the building owner's BPP C. The leasehold improvements section of the building owner's BPP D. The business personal property section of Paris Cuisine's BPP

D. The business personal property section of Paris Cuisine's BPP

Which one of the following losses would be considered covered water damage under the commercial property policy Causes of Loss—Broad Form? Select one: A. Continued or repeated leakage or seepage of water that occurs over 14 days or more B. Sudden and accidental discharge of water from the breaking apart of an insured's water pipe C. Surface water D. Flooding

B. Sudden and accidental discharge of water from the breaking apart of an insured's water pipe

Which one of the following statements is correct with respect to the Building and Personal Property Coverage Form's (BPP) coverage for personal property of others? Select one: A. Even if the insured does not buy coverage for personal property of others the BPP still provides a coverage extension for personal property of others, which is limited to $2,500 at each insured location. B. Coverage for personal property of others applies only if the insured is legally responsible for the damage. C. The BPP covers personal property of others while it is located anywhere in the world. D. The BPP specifically excludes coverage for businesses (bailees) that have customers' property in their custody, such as laundries, dry cleaners, appliance repair shops, and furniture upholstery shops.

A. Even if the insured does not buy coverage for personal property of others the BPP still provides a coverage extension for personal property of others, which is limited to $2,500 at each insured location.

Which one of the following statements is correct with respect to the business personal property coverage provided by the Building and Personal Property Coverage Form (BPP)? Select one: A. Except for limited off-premises coverage, coverage for business personal property applies only when the property is located in or on the described building or in the open (or in a vehicle) within 100 feet of the building or structure or within 100 feet of the premises, whichever is greater. B. Leased personal property for which the named insured has a contractual responsibility to procure coverage is excluded from the BPP, but the coverage can be added by endorsement. C. The definition of business personal property limits the coverage to furniture, fixtures, machinery and equipment owned by the insured and used in the insured's business. D. "Your business personal property" specifically excludes labor, materials, or services furnished by the insured on the personal property of others.

A. Except for limited off-premises coverage, coverage for business personal property applies only when the property is located in or on the described building or in the open (or in a vehicle) within 100 feet of the building or structure or within 100 feet of the premises, whichever is greater.

Which one of the following statements is correct with respect to Property Not Covered under the Building and Personal Property Coverage Form (BPP)? Select one: A. Only contraband or property in the course of illegal transportation or trade is totally uninsurable by endorsement or in other policies. B. By endorsement, insurance can be made available for any of the items listed in the Property Not Covered section. C. ISO manual rules prohibit removing the exclusion of many of the items specified under Property Not Covered. D. Almost all of the items listed in the Property Not Covered section are considered to be uninsurable.

A. Only contraband or property in the course of illegal transportation or trade is totally uninsurable by endorsement or in other policies.

Which one of the following Additional Coverages is covered under the Causes of Loss—Special Form but not under the Causes of Loss—Broad Form? Select one: A. Property in Transit B. Falling Objects C. Collapse D. "Fungus", Wet Rot, Dry Rot and Bacteria

A. Property in Transit

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

A. Provide a premium discount for the insured.

Which one of the following statements is correct with regard to the Causes of Loss—Broad Form? Select one: A. The weight of snow, ice, or sleet cause of loss does not cover damage to personal property in the open. B. The water damage cause of loss includes coverage for damage due to discharge or leakage from roof drains, gutters, downspouts, or similar fixtures or equipment C. The falling objects cause of loss provides coverage for falling objects that damage personal property in the open. D. The form specifically excludes the cost of tearing out and replacing any part of an insured building to repair damage to any appliance or system that leaked water or steam.

A. The weight of snow, ice, or sleet cause of loss does not cover damage to personal property in the open.

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

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

Under which one of the following provisions of the Building and Personal Property Coverage Form (BPP) is the maximum payment $10,000 or five percent of the building limit, whichever is less? Select one: A. Outdoor Property coverage extension B. Increased Cost of Construction additional coverage C. Pollutant Cleanup and Removal additional coverage D. Debris Removal additional coverage

B. Increased Cost of Construction additional coverage

Which one of the following statements is correct with respect to the building coverage provided by the Building and Personal Property Coverage Form (BPP)? Select one: A. The BPP covers all buildings located at the insured premises whether specifically listed and described in the declarations or not. B. Personal property owned by the insured and used to maintain or service the building or its premises is included in the BPP's definition of "building." C. Outdoor fixtures are excluded from building coverage. D. Machinery and equipment, whether permanently installed or not, must be insured as business personal property.

B. Personal property owned by the insured and used to maintain or service the building or its premises is included in the BPP's definition of "building."

Which one of the following statements is correct with respect to the Building and Personal Property (BPP) Coverage Form? Select one: A. The BPP covers business personal property and property of others up to a specified percentage of the building coverage limit. B. The BPP lists several types of classes of property that do not qualify as covered property. C. The BPP must be written to provide coverage for all of the following: buildings, business personal property, and personal property of others. D. The BPP provides coverage against both direct and indirect loss or damage caused by a covered cause of loss.

B. The BPP lists several types of classes of property that do not qualify as covered property.

Which one of the following statements is correct with respect to the Building and Personal Property Coverage Form (BPP) deductible? Select one: A. Under the ISO Commercial Lines Manual rules, the standard deductible must be at least $2,500. B. The insurer is not obligated to pay anything to the insured unless the loss exceeds the deductible. C. If the Coinsurance condition or the Agreed Value optional coverage applies, the amount of the loss is first reduced by the deductible before applying any penalty imposed by those provisions. D. If an occurrence involves a loss that affects more than one category of covered property and a separate limit of insurance applies to each category, losses to all categories are totaled and the deductible applied to that total amount.

B. The insurer is not obligated to pay anything to the insured unless the loss exceeds the deductible.

Which one of the following best describes a package modification factor? Select one: A. Any condition or situation that presents a possibility of loss, regardless of whether loss actually occurs B. The price per exposure unit for insurance coverage C. A factor that is applied to the regular policy premiums for certain coverage parts of a CPP, resulting in premium discounts for those coverage parts D. A factor that is applied to the regular policy premiums for certain coverage parts of a CPP, to account for territorial differences

C. A factor that is applied to the regular policy premiums for certain coverage parts of a CPP, resulting in premium discounts for those 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. Attach an additional commercial property coverage form to the policy. B. 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. D. Cover all remaining locations not listed on the first declarations page under a second insurance policy.

C. Add supplemental declarations on a separate page.

The Causes of Loss—Special Form states that it covers "risks of direct physical loss." The loss or damage Select one: A. May be intentional and foreseen by the insured and still be covered. B. Only has to be accidental to be covered. C. Must be unforeseen and accidental from the insured's perspective in order to be covered. D. Only has to be unforeseen by the insured in order to be covered.

C. Must be unforeseen and accidental from the insured's perspective in order to be covered.

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. Commercial Property Conditions B. Optional exclusion forms C. Supplemental declarations D. Endorsements

D. Endorsements

Which one of the following statements is correct with respect to the Non-Owned Detached Trailers coverage extension of the Building and Personal Property Coverage Form (BPP)? Select one: A. The coverage applies while the trailer is attached to any motor vehicle or motorized conveyance, provided it is not in motion. B. The trailer can be used anywhere in the United States. C. Coverage is available only if the insured has no contractual responsibility for loss or damage to the trailer. D. It permits the insured to extend "your business personal property" to include trailers leased to expand office space or to provide additional storage or work areas.

D. It permits the insured to extend "your business personal property" to include trailers leased to expand office space or to provide additional storage or work areas.

Which one of the statements is correct with respect to the Building and Personal Property Coverage Form (BPP)? Select one: A. Any type of personal property can be insured under the BPP. B. The Covered Property section is the only section that must be read in order to determine whether a specific kind of property is insured. C. The BPP includes satisfactory coverage for physical damage to automobiles owned by the named insured. D. Some property, such as building foundations below the lowest basement floor, is excluded because it may not be subject to loss by the perils insured against.

D. Some property, such as building foundations below the lowest basement floor, is excluded because it may not be subject to loss by the perils insured against.

The Causes of Loss—Basic Form differs from the Causes of Loss—Broad Form in which one of the following ways? Select one: A. The Broad Form specifically excludes rupture or bursting of water pipes and leakage of water or steam from any part of a system or appliance. B. The Broad Form covers "risks of direct physical loss" subject to the form's exclusions and limitations. C. The Broad Form adds coverage for flooding, rainfall, sewer backup, and similar causes of water damage. D. The Broad Form provides coverage for loss caused by collapse of a building or personal property resulting from specified perils.

D. The Broad Form provides coverage for loss caused by collapse of a building or personal property resulting from specified perils.

Which one of the following losses would be covered under the commercial property policy Causes of Loss—Broad Form additional coverage for Collapse? Select one: A. Weakening of part of the insured's building so that the building is in danger of falling down B. Cracking or bulging of part of the insured's building C. Settling of a building D. The abrupt falling down of part of the insured's building

D. The abrupt falling down of part of the insured's building

Which one of the following best describes coverage for crime losses under the commercial property policy Causes of Loss—Basic Form? Select one: A. There is no coverage for the taking of the insured's property by looters during a riot. B. There is no coverage for any crime losses. C. The insured is covered for theft of any property in the insured's building, up to the policy limit. D. There is coverage for building damage caused by burglars breaking in or exiting the insured's property.

D. There is coverage for building damage caused by burglars breaking in or exiting the insured's property.