Commercial Property

Question 1

The amount of coverage for debris removal in the building and personal property coverage form is:

Answer 1

$10,000 dollars excess over limit policy

Question 2

If someone steals employees personal effects from their place of business, a building and personal property coverage form would:

Answer 2

No coverage. No theft coverage of personal effects

Question 3

Ace lawnmower sales since one of its floor model riding mowers to Acme lawnmower repair. While at Acme a cause of loss covered by aces building and personal property coverage for causes $4100 in damage to the mower. Is this policy will provide coverage in the amount of:

Answer 3

$4100

Question 4

Sam’s shoe store has a value reporting endorsement, monthly option on his building and personal property coverage form. The provisional amount is $100,000 and is effective the day as march 1, 2014. Sam files his reports for March, April, May and June. The June value is $70,000. If Sam has a $60,000 loss in September and no more reports have been filed, the most he would recover is:

Answer 4

$60,000. The last value report because the limit

Question 5

In the building and personal property coverage form, vacancy of more than 60 days suspends coverage for all of the following causes:

Answer 5

Sprinkler leakage, attempted theft, vandalism

Question 6

Is it necessary to have replacement cost to determine the value of damaged improvements and betterment is under coverage in the building and personal property coverage form?

Answer 6

It is not necessary. However you will need to have the original cost, time. Of the lease, and the date loss

Question 7

To receive a replacement cost adjustment of a covered loss under building and personal property coverage form, the insured must:

Answer 7

Rebuild Within a reasonable amount of time

Question 8

Sam’s shoe store has a value reporting endorsement, monthly option on his building and personal property coverage form. The provisional amount is $100,000 and the effective date is 3/1/14. Sam has an $80,000 loss on 4/22/14 and no reports have been made. His recovery will be:

Answer 8

$80,000. Full coverage. No report is late. If losses after 4/30/14 and no report is Phil, Sam get 75% of the loss up to $75,000

Question 9

General exclusions found in the commercial property cause of loss form include:

Answer 9

Cost resulting from building ordinances, waves, rising water, earth other than catastrophic groundcover collapse. Remember that power failure on premises is not included

Question 10

Under additional coverages in the building and personal property coverage form can you include the cost of a watch person?

Answer 10

No, removal of debris, 30 day coverage at a new location, and $1000 fire department service charge are covered

Question 11

Sally Smith has a covered loss under building and personal property coverage form. The cost to replace the damaged property is $2200 and the actual cash value is $1600. The loss will be paid, ignoring deductibles:

Answer 11

$2200 if Sally is in compliance with the coinsurance condition

Question 12

The business income coverage form with extra expense will pay all of the following items of the insured has a covered loss:

Answer 12

Loss of profits, continually expenses,’s cost of staying in business even if no savings result

Question 13

Business income coverage form option, maximum period of indemnity change the coverage form and all of the following ways:

Answer 13

Suspends the coinsurance condition, limits the period of restoration to 120 days, eliminates requirement for worksheet

Question 14

Is the condominium association coverage form and the condominium unit owners coverage form applies to the same loss, the policy pays as follows

Answer 14

Association primary/unit – owners excess

Question 15

What is the limit on personal property automatically covered a new location under CP 0010?

Answer 15

$100,000

Question 16

The optional coverage under business income form that replaces the coinsurance condition with the value establishing the amount of insurance to be carried is called:

Answer 16

Agreed value

Question 17

Under which of the following circumstances does the building and personal property coverage form provide coverage extensions?

Answer 17

80, 90 or 100% coinsurance applies

Question 18

What business income coverage provides the insured with protection for loss of income due to a covered loss at location other than the insureds upon which the insured realize for materials or services?

Answer 18

Business income from dependent properties form

Question 19

The suspension provision for certain parols under building and personal property coverage form applies after:

Answer 19

60 days vacancy

Question 20

What is the standard deductible and the commercial property program?

Answer 20

$500 except hurricane – minimum $500, maximum 10% of policy limit for hurricanes

Question 21

Business income forms have a waiting period of

Answer 21

72 hours

Question 22

The business income coverage form optional coverage – maximum period Of indemnity provides:

Answer 22

Policy limit/120 days maximum time period

Question 23

Which of the following are additional coverages in the business income coverage form without extra expense: A. Extra expense only to extend its reduce loss.
B. Exercise of civil authority.
C. Extended period of indemnity.
D. Extra expense weather and reduce his loss or not

Answer 23

D extra expense weather and reduces loss or not

Question 24

What business income coverage form pays the extraordinary expenses incurred to maintain operations after the occurrence of a covered peril?

Answer 24

Extra expense coverage form

Question 25

How does the value reporting form treat losses were no report has been made and the report is past due?

Answer 25

Company pays 75% of what would have been paid if it weren’t made

Question 26

What endorsement provides a specific increased property limits for a period of time specified on the endorsement

Answer 26

Peak season

Question 27

And the special cause of loss form, the additional coverage extension for transit coverage is:

Answer 27

$5000

Question 28

All are optional coverages contained in the building and personal property coverage form:

Answer 28

Shinguard, replacement cost, agreed value

Question 29

Under CP0010 coverage for valuable repapers and records is an amount of

Answer 29

2500

Question 30

The provision and the builders risk coverage for the penalizes the insured for underinsurance is called

Answer 30

Need for adequate insurance clause

Question 31

Under the building and personal property coverage form, tenants improvements and betterment not replaced after lost our value based on:

Answer 31

Original cost

Question 32

James insurance agency has an extra expense coverage form with a $30,000 limit. James agency is damaged by a covered cause of loss and incurs the following extra expenses. First 30 days $14,000, second 30 days $11,000. How much will James recover under his extra expense coverage, of policy shows 40%, 80%, 100% as limits on loss payment?

Answer 32

$24,000 loss of them for 60 days is limited to 80% of the limit

Question 33

And commercial property insurance, which exposures are covered by the leasehold interest coverage form?

Answer 33

Lots of remaining value on prepaid rents and loss of favorable sublease, remaining value and bonus paid to acquire lease, last remaining value of improvements and betterment

Question 34

Does the building ordinance coverage for cover the cost to haul off debris from the damage portion?

Answer 34

Oh no