Commercial Property Insurance

Question 1

The common policy conditions in commercial property insurance includes all of the following, EXCEPT:

A) Inspections and surveys
B) Changes
C) Transfer of rights
D) Fire department service charge

Answer 1

D) Fire department service charge

Question 2

Which of the following is excluded under the Basic Causes of Loss form?

A) Utility services
B) Sinkhole collapse
C) Volcanic eruption
D) Sprinkler leakage

Answer 2

A) Utility services

Question 3

Which of the following perils is not one of the three included on the Broad Causes of Loss Form?

A) Water damage from accidental discharge
B) Steam boiler explosion
C) Falling objects
D) Weight of ice, snow, or sleet

Answer 3

B) Steam boiler explosion

Question 4

How much can be paid under the Business and Personal Property Coverage Form for debris removal due to a covered loss?

A) $1,000
B) $5,000
C) 15% of Coverage A
D) 25% of the loss

Answer 4

D) 25% of the loss

Question 5

What is the limit of coverage for business personal property away from the premises under the Business and personal property coverage form?

A) $1,000
B) $5,000
C) $10,000
D) $15,000

Answer 5

C) $10,000

Question 6

A building is consider vacant unless what percentage of the building’s total square footage is rented or used to conduct customary operations?

A) 10%
B) 20%
C) 26%
D) 31%

Answer 6

D) 31%

Question 7

The builder’s risk coverage form automatically ends at the earliest of all of the following, except:

A) Policy expires
B) Property is sold
C) Property is abandoned
D) 60 days after construction is completed

Answer 7

D) 60 days after construction is completed

Question 8

The condominium association coverage form is used in place of which coverage form when insuring a condo building insured by the association?

A) Dwelling property
B) Homeowner policy
C) Building and Personal Property Coverage form
D) Condominium HO-6 policy

Answer 8

C) Building and Personal Property Coverage form

Question 9

The Condominium Commercial Unit-owners coverage covers each of the following, EXCEPT:

A) Improvements
B) Fixtures
C) Appliances
D) Personal property

Answer 9

D) Personal property

Question 10

In the Business Income Coverage Form, Period of Restoration begins _____ after the time of loss?

A) 55 days
B) 72 hours
C) 86 years
D) 100 years

Answer 10

B) 72 hours

Question 11

Each of the following is covered under the Legal Liability Coverage Form, EXCEPT:

A) Damage to real or personal property owned by others when it is in the insured’s care
B) Loss of use
C) Defense costs
D) Loss of income

Answer 11

D) Loss of income

Question 12

The Ordinance or Law Coverage endorsement covers each of the following losses, EXCEPT:

A) Demolition of the undamaged parts of a building
B) Increased cost of repairing damaged parts of the building
C) Loss of value in the damaged portion of the building
D) Clearance of the undamaged parts of the building

Answer 12

C) Loss of value in the damaged portion of the building