Exam 25: Commercial Property Insurance

Which of the following perils is not included in the causes-of-loss basic form of the ISO commercial package policy?

Which of the following statements about the extra expense coverage form is (are)true? I.It provides coverage for the increased cost that must be paid to continue operations during a period of restoration. II.It provides coverage for lost business income if a key customer or key supplier experiences a loss.

All of the following statements about business income insurance are true EXCEPT

Which of the following statements describes a Difference in Conditions (DIC)Policy?

Which of the following statements about the businessowners policy is (are)true? I.It is designed to meet the insurance needs of large manufacturing firms. II.It is a package policy designed to meet the basic property and liability needs of an insured in a single contract.

All of the following are considered to be instrumentalities of transportation and communication for purposes of inland marine insurance EXCEPT

The building and personal property coverage form provides several optional coverages.Under one optional coverage,no deduction is taken for depreciation when settling a covered loss.This optional coverage is called

Renee is risk manager of XYZ Company.She purchased a Commercial Package Policy for her company and added one optional coverage.This option suspends the coinsurance clause and substitutes a new agreement covering any loss in the same proportion that the limit of insurance purchased bears to a value specified in the declarations.This provision is known as

One of the additional coverages under the building and personal property coverage form is "increased cost of construction." The coverage is payable if

Which of the following forms is used to insure buildings that are under construction?

Which of the following is covered under the building and personal property coverage form?

Which of the following statements about the business income coverage form is true?

Reimbursement for spoilage of frozen food caused by failure of a refrigeration unit at a frozen foods processor can be covered under

Which of the following items is (are)contained in the common policy conditions page of the commercial package policy? I.A description of the property that is insured. II.A provision describing the insurer's right to audit the insured's books and records

All of the following statements about the businessowners policy are true EXCEPT

Brandie's first job out of college was working for a national insurance brokerage.Her boss gave her a book to review that contained many different insurance forms.One interesting form provides open-perils coverage,but excludes losses usually covered by standard property insurance contracts (fire,wind,hail,explosion,etc. ).Brandie boss told her that some businesses purchase the coverage to supplement their other property coverages,as it provides flood coverage,earthquake coverage and insurance for other losses that are not excluded.The interesting policy form Brandie found was

CompuFix services desktop and laptop computers.The owner of CompuFix is concerned that computers that are left with the business to be repaired may be damaged or destroyed.To address this risk,CompuFix should purchase

XYZ,Inc.would suffer serious financial consequences if either of its two major customers were shut down and could not purchase XYZ products.Which of the following types of consequential loss protection would provide protection against this exposure?

All of the following are extensions of coverage under the building and personal property coverage form EXCEPT

Which of the following statements concerning terrorism insurance is (are)true? I.Terrorism insurance covers direct physical damage to the insured's property resulting from an act of terrorism. II.Terrorism insurance and be added through an endorsement to the commercial property insurance policy or purchased as a separate,stand-alone policy.