CIC Commercial Multi-line Exam Prep Questions with Complete Solutions Distinguish between Covered Property and Property Not Covered under the
Businessowners Coverage Form. - Correct Answer Covered:
Buildings:
Includes PP of landlord (common areas, furnished) Covers Bridges, Retaining Walls, Wharves, Docks Replacement Cost
BPP:
Includes Property of Others (in CCC) Exterior Building Glass Replacement Cost
Not Covered:
Money/Securities Fences, radios, antennas, towers, signs (detached) plants Installed computers (in vehicles etc) Electronic Data Identify and describe the Additional Coverages, Coverage Extensions, and Limits Of
Insurance of the Businessowners Policy. - Correct Answer Additional Coverages:
Fire Department ($2.5k) B.I.- 12 mo ALS, 72 hr Waiting period payroll 60 days covers normal operating expenses triggered by suspension (slowdown, cessation, premises is untenable) by covered loss Extra Expense- No waiting period, 12 mo. pays additional cost while operations are disrupted Civil Authority- if authority shuts you down- 4 wks 72 hr waiting (BI/EE) 1 / 3
Money Orders & Conterfit money: $1k
Forgery or Alterations Increased Cost of Construction BI from dependent properties Fire Extingushers Electronic Data Interruption of Computer Operations
COVERAGE EXTENSIONS
Newly acquired or construction property (30 days to tell) Personal Property Off Premises ($10k in transit, no money) Outdoor Property (2.5k plants, fence, sign FLARE Perils only) Personal Effects Valuable Papers Accts Recivables BPP in Temp storage units 2 / 3
LIMITS of insurance attached sign- $1k Inflation Guard- AUtomatic building increase BPP Seasonal Increase (25%) Identify and describe the property Optional Coverages available in the BOP that must be activated in order for coverage to apple - Correct Answer Outdoor Signs: $1k attached, $2.5k Detached
Money & Securities: Theft, disappearance or destruction
Employee Dishonesty Equipment Breakdown
MUST BE ACTIVATED FOR COVERAGE TO APPLY BY X ON DEC PAGE
Identify the two promises the insurer makes in the Business Liability insuring agreement and state the requirements that must be met for coverage to apply - Correct Answer 1.) Insurer agrees to pay the sums of BI/PD that the insured is legally liable to pay 2.) Insurer has the right and duty to defend the insured in the event of a loss Summarize the advantages and disadvantages of the BOP - Correct Answer Advantages: -No Coinsurance -Replacement Cost Building + BPP -Automatic Building Increase (inflation) -Automatic Seasonal Increase BPP -BI, 12 mo ALS
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