CIC COMMERCIAL PROPERTY EXAM PREP STUDY GUIDE LATEST UPDATED ANDVERIFIED

CIC COMMERCIAL PROPERTY EXAM PREP STUDY GUIDE LATEST UPDATED ANDVERIFIED Endorsements used to modify coverage extensions (6) - CORRECT ANSWER-1. newly acquired or constructed property - increased limit 2. higher limits 3. specified bpp temporarily away from premises 4. additional covered property 5. radio or television antennas 6. trees, shrubs, plants Explain replacement cost - CORRECT ANSWER-- without deduction for depreciation - claims are paid on acv until repairs or replacements is complete and then difference is paid - does not apply to pp of others, contents of residence or fine arts Optional Coverage - RC PP OF OTHERS - CORRECT ANSWER-- applies rc to property of others but limited to the lessor of amount required by contract or RC Loss Payment options (4) - CORRECT ANSWER-1. Pay the value 2. Pay the cost to repair or replace 3. take the property at an agreed or appraised value 4. repair, rebuild or replace with like kind and quality Vacancy provision - describe and apply - CORRECT ANSWER-1. Tenant - does not contain enough BPP to conduct customary operations 2. owner - must be at least 31% leased and used by lessee to conduct customary operations 3. Under construction or renovation are not vacant 4. vacant for 60 consecutive days - theft, vandalism, sprinkler leakage, glass breakage, and attempted theft are not covered perils 5. all other causes of loss payment is reduced by 15% Endorsement that modify valuation provision (6) - CORRECT ANSWER-1. Manufacturers selling price (finished stock) 2. market value - stock 3. manufactures consequential loss assumption 4. Functional personal property valuation 5. functional building valuation 6. increased cost of loss and related expenses for green updates