Insurance- Property section 3E

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Author:
h_scott
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292134
Filename:
Insurance- Property section 3E
Updated:
2014-12-27 23:27:54
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Insurance
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Property insurance section 3e
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  1. All of the following are true about the builders risk coverage form EXCEPT:
    A: Coverage terminates upon completion of construction
    B: The amount of risk increases as the building is completed
    C: Trees, shrubs and plants are not covered
    D: There is no coinsurance requirement
    A: Coverage terminates upon completion of construction
  2. The basis for all commercial property insurance sold in this state is the:
    A: Commercial property basic form
    B: Standard fire policy
    C: Commercial building and personal property form
    D: Commercial package policy
    B: Standard fire policy
  3. On the commercial building and personal property form, all are true about the deductible EXCEPT:
    A: The deductible applies per occurrence and per building, if more than 1 building is covered on the policy
    B: A $100 deductible may be purchased for a higher premium
    C: The deductible applies after calculating coinsurance penalties, if any
    D: The standard deductible is $250
    A: The deductible applies per occurrence and per building, if more than 1 building is covered on the policy
  4. All of the following are true about business income coverage EXCEPT:
    A: It is subject to coinsurance requirements as selected
    B: It is indirect consequential coverage
    C: Profits may be covered
    D: It is written with a deductible
    D: It is written with a deductible
  5. When a policy is written for the named insured, the rates for a dwelling under construction are based upon:
    A: The value reported to the insurer each month
    B: Completed value
    C: Average value
    D: Depreciated value
    C: Average value
  6. An automobile dealer with cars in inventory that have fluctuating values needs a:
    A: Garage liability policy
    B: Stated amount contract
    C: Reporting form
    D: Valued policy
    C: Reporting form
  7. All of the following are cause of loss forms that may be added to a Commercial Building and Personal Property Coverage Form EXCEPT:
    A: Broad
    B: Basic
    C: Comprehensive
    D: Special
    C: Comprehensive
  8. The commercial building and personal property coverage form provides for several extensions of coverage, but only if:
    A: A 80% or more coinsurance percentage is shown in the declarations
    B: An additional premium is paid
    C: The policy is written on a blanket basis
    D: The coverage is written on a replacement cost basis
    A: A 80% or more coinsurance percentage is shown in the declarations
  9. Changes to a CPP must be made by adding a(n):
    A: Provision
    B: Endorsement
    C: Supplement
    D: Rider
    B: Endorsement
  10. A commercial property condition that automatically provides broader coverage when the insurer makes revisions to a current policy edition without charging an additional premium is the:
    A: Liberalization clause
    B: Additional coverage clause
    C: Other insurance clause
    D: Assignment clause
    A: Liberalization clause
  11. Insureds often add the optional commercial glass coverage form to their CPP for all of the following reasons EXCEPT:
    A: The special cause of loss form contains the same limits as broad form
    B: This optional endorsement is provided at no extra premium charge
    C: The broad cause of loss form limits glass coverage to $100 per pane and $500 per occurrence
    D: The basic cause of loss form does not cover glass windows
    B: This optional endorsement is provided at no extra premium charge
  12. On a commercial property policy, the exclusion relating to no coverage after 60 consecutive days of vacancy applies to:
    A: Wind
    B: Hail
    C: Fire
    D: Vandalism
    D: Vandalism
  13. Valuable papers insurance covers all of the following EXCEPT:
    A: Manuscripts
    B: Books
    C: Maps
    D: Money and securities
    D: Money and securities
  14. Vacancy on a commercial property policy is defined as more than _____ consecutive days:
    A: 30
    B: 45
    C: 60
    D: 90
    C:  60
  15. On a commercial building and personal property form, the insured receives certain extensions of coverage at no additional premium charge if 80% or more coinsurance is carried. Included in these extensions are all of the following EXCEPT:
    A: Limited off-premises coverage for business personal property
    B: Automatic coverage for newly acquired buildings for 30 days
    C: Debris removal
    D: Limited coverage for personal effects and property of others
    C: Debris removal
  16. A commercial property insurance that has a single limit of insurance for all property coverage at 3 different locations is known as:
    A: Specific coverage
    B: Valued coverage
    C: Blanket coverage
    D: Stated coverage
    C: Blanket coverage
  17. For nonpayment, insurers canceling commercial policies must give _____ days advance notice:
    A: 30
    B: 45
    C: 10
    D: 60
    C: 10
  18. Which coverage or coverages are mandatory under the commercial package policy?
    A: Commercial property and liability
    B: Commercial property and crime
    C: Commercial liability and auto
    D: Any 2 lines of insurance
    A: Commercial property and liability
  19. A CPP coverage part includes all of the following relating to a single line of insurance EXCEPT:
    A: Endorsements
    B: Coverage forms
    C: Common policy conditions
    D: Declarations
    C: Common policy conditions
  20. On a CPP, the common policy declarations states all EXCEPT:
    A: The policy period
    B: The named insured and type of business
    C: A list of all covered cause of loss
    D: A schedule of coverage parts and premiums for each
    C: A list of all covered cause of loss
  21. On a CPP, interline endorsements do all of the following EXCEPT:
    A: Only apply to commercial liability coverage
    B: Could apply to more than 1 coverage part
    C: Minimize the number of endorsements needed on the policy
    D: Eliminate duplicate language
    A: Only apply to commercial liability coverage
  22. Which commercial cause of loss form covers theft of business personal property?
    A: Special
    B: All
    C: Broad
    D: Basic
    A: Special
  23. An optional commercial property coverage that automatically increases the limit of insurance by an annual percentage shown in the declarations is called:
    A: Agreed value coverage
    B: Inflation guard coverage
    C: Coinsurance coverage
    D: An extension of coverage
    B: Inflation guard coverage
  24. All of the following are common conditions in a CPP EXCEPT:
    A: The insurer may inspect the insured's books and records up to 3 years after expiration
    B: Buildings are considered vacant unless 31% or more of the rental units or floor area are occupied
    C: Insurers must give 10 days' advance notice when canceling for nonpayment of premium
    D: Only the first named insured may cancel the policy
    • D: Only the first named insured may cancel the policy
    • (Either the insured or the insurer can cancel a policy.)
  25. Which coverage may not be added to a commercial package policy?
    A: Liability
    B: Property
    C: Crime
    D: Workers' compensation
    D: Workers' compensation

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