CISR - Commercial Property Exam 24 Questions with Answer,100% CORRECT

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CISR - Commercial Property Exam 24 Questions with Answer List the 3 Covered Causes of Loss Forms - CORRECT ANSWER Basic Broad Special Basic and Broad Forms operate on what peril basis? - COR... RECT ANSWER Named Perils - Insured must prove that a covered cause of loss occurred What peril basis does a Special Form operate on? - CORRECT ANSWER Open Peril - Insurer must prove that an exclusion apples Basic Form (CP 10 10 ) - CORRECT ANSWER -Covers losses arising from eleven named perils plus the Additional Coverage - Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria -Insured must show the loss was caused by a peril as defined and limited in coverage form -Damage caused by wind, hail, vandalism, or sprinkler leakage may be excluded by endorsement Basic does not include: - CORRECT ANSWER -falling objects -weight of snow, ice, or sleet -water damage -additional coverage -direct physical loss Broad does not include: - CORRECT ANSWER Direct Physical Loss Special form coverage - CORRECT ANSWER Property insurance coverage covering all causes of loss not specifically excluded. List the Exclusions Common to All Forms - CORRECT ANSWER Ordinance or Law Earth Movement Governmental Action Nuclear Hazard Utility Services War & Military Action Water Fungus, Wet/Dry Rot, and Bacteria Ordinance or Law - CORRECT ANSWER Exposure : -value of undamaged part of building -cost to demolish the undamaged part of building and remove debris -the increased costs to rebuild to satisfy current codes Solution : Ordinance or Law Coverage EndorsEment (CP 04 05) Describe the 3 possible losses a business faces with ordinance or law exposures: - CORRECT ANSWER - Value of undamaged part of building because no longer habitable - Cost to demolish undamaged portion and debris rem. - Increased cost to rebuild the structure to satisfy current codes Earth Movement - CORRECT ANSWER - Damage not paid for movement of earth - fire/explosion following an earthquake is covered -earthquake provided by endorsement (CP 10 40) Governmental Action - CORRECT ANSWER If the government seizes your property, the loss is not covered Nuclear Hazard - CORRECT ANSWER -caused by nuclear incident is not covered -caused by a resulting fire is covered Utility Services - CORRECT ANSWER Failure of power, communication, water, or other damage War and Military Action - CORRECT ANSWER undeclared war, civil war, and other warlike actions by military force Water - CORRECT ANSWER -Flood (CP 10 65) -Mudslide -Sewer -Underground that seeps through ... -Material carried by water Fungus, wet rot, dry rot, bacteria - CORRECT ANSWER - Includes Mold -Limited to damage caused by specified causes of loss -does not apply to fire or lightning; or if it is covered under additional coverage Special Form Exclusions - CORRECT ANSWER -artificially generated electrical surges -indirect loss of income -smoke,vapor,gas from agriculture -wear and tear losses:rust,decay,settling,nesting,mechanical breakdown, atmospheric changes -explosion of steam boiler -continual repeated seepage over 14 days or more - water damage cause by burst pipes -caused by anyone entrusted with property Special Exclusions - Apply only to the following forms: - CORRECT ANSWER Business Income, Extra Expense Leasehold Interest Legal Liability Specified Causes of Loss - CORRECT ANSWER Fire lightning explosion windstorm or hail smoke aircraft or vehicles riot or civil commotion vandalism leakage from fire extinguishing equipment sinkhole collapse volcanic action falling objects weight of snow, ice or sleet water damage Additional Coverage: Collapse is only found in what forms? - CORRECT ANSWER Broad & Special Collapse is covered only if caused by the following: - CORRECT ANSWER -specified cause of loss -hidden decay (dry rot) -hidden damage by insects (termite damage) -weight of people or property -weight of rain on roof -use of defective material or methods Coverage for Fugus, Wet/Dry Rot, and Bacteria - CORRECT ANSWER -limited to names perils -total limit is $15000 -does not increase limit on the covered prop -additional coverage endorsement (CP 04 31) optional What are the 3 Additional Coverage Extensions in Special Causes of Loss Form? - CORRECT ANSWER -Property in Transport -Water,Damage, Other Liquids, Powder, Molten Material -Glass [Show More]

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