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Note Q&A for the California commercial insurance exam. Everything you need to know. Cards 01-33: Property Basics: Section 1 Cards 34-72: Commercial Coverage Part 1: Section 2 Cards 73-91: Commercial Coverage Part 2: Section 3 Cards 92-131: Commercial Cove$11.99
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Note Q&A for the California commercial insurance exam. Everything you need to know. Cards 01-33: Property Basics: Section 1 Cards 34-72: Commercial Coverage Part 1: Section 2 Cards 73-91: Commercial Coverage Part 2: Section 3 Cards 92-131: Commercial Cove
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California commercial insurance e
Institution
California Commercial Insurance E
Note Q&A for the California commercial insurance exam. Everything you need to know. Cards 01-33: Property Basics: Section 1 Cards 34-72: Commercial Coverage Part 1: Section 2 Cards 73-91: Commercial Coverage Part 2: Section 3 Cards 92-131: Commercial Coverage Part 3: Section 4 Cards 132-157: Commer...
Note Q&A for the California commercial
insurance exam. Everything you need to know.
Cards 01-33: Property Basics: Section 1 Cards
34-72: Commercial Coverage Part 1: Section 2
Cards 73-91: Commercial Coverage Part 2:
Section 3 Cards 92-131: Commercial Coverage
Part 3: Section 4 Cards 132-157: Commercial
Auto: Section 5 Cards 158-191: Farm, Flood,
and BOP: Section 6/ Q&A with Rationales
Coverage B of the Commercial Building and Personal Property coverage form covers all of the
following EXCEPT:
Furniture and office supplies
Property off the premises
Postage Meters
Copy Machines - Answer: Property off the premises.
NOTE: Property off premises is not included in the policy but added with an extension of
coverage. This need would be expressed by the insured and added by way of extension. An
additional premium charge would apply.
Page 1 of 56
,Coverage A of the Commercial Building and Personal Property coverage form covers which of
the following:
A riding lawn mower.
Personal Property
Buildings and sparate structures and a riding lawn mower are both correct answers.
Buildings and Separate Structures - Answer: Buildings and sparate structures and a riding lawn
mower are both correct answers.
NOTES: Buildings and separate structures as well as a riding lawn mower is considered part of
Coverage A, as it is used to maintain/service the property
Which of the following is a coverage extension on the Commercial Building and Personal
property coverage form?
Indoor and Outdoor fixtures
Stock or Inventory
Improvements and Betterments
Debris Removal - Answer: Debris Removal
NOTES: Debris removal is a coverage extension with no extra premium charge and does not
reduce the limit of insurance.
Coverage A of a Building and Personal Property form would exclude all but:
Vacuum and Floor waxer
Page 2 of 56
,Patios and Driveways
Indoor Furnishings
Piers, wharves, docks - Answer: Vacuum and Floor waxer
NOTE: Equipment used to service the premises is covered under Coverage A on the BPP.
What is the formula for calculating the coinsurance penalty? - Answer: Amount carried, divided
by required amount, multiplied by loss, minus deductible
NOTE: Carried = $60,000 X Loss $10,000 - ded.= Loss Pmt. -------------------- $7,500 Required =
$80,000
Which of the residential policies are basic perils?
All the DP policies
DP-1 and HO-8
DP-1, HO-8 and HO-2
DP-2 and HO-2 - Answer: DP-1 and HO-8
NOTE: The Basic forms used to insure residential property are DP-1 and HO-8.
The loss condition states the insurer must pay the claim within: - Answer: 30 Days
NOTE: Upon both parties being in agreement payment must be made within 30 days.
When a covered loss occurs and two policies are in force for the same property, with the same
terms and conditions, how will the loss be settled? - Answer: Each company will pay their share
of the loss on a pro rata basis.
Page 3 of 56
, NOTE: Only when the policies have the SAME terms and conditions will they pay their portion
on a pro rata basis. If the terms and conditions of the two policies are DIFFERENT, then one is
primary and the other excess. Payment is determined by the companies involved, considering
inception dates, coverage, etc.
The modular concept refers to: - Answer: Parts of a package policy.
NOTE: Modules are the coverage parts that make up a package policy, such as GL or Auto.
All of the following are true about the cancellation of a commercial policy, EXCEPT:
The first named insured may cancel the policy at any time.
The insurer must be able to prove the delivery of a notice of cancellation.
All refunds will be mailed to the first named insured on the policy.
10 days notice must be given for non-payment of premium and 45 days notice for all other
reasons. - Answer: The insurer must be able to prove the delivery of a notice of cancellation.
NOTE: No proof of delivery is needed. Only proof of mailing.
How much would you receive if you carried $40K, the requirement was $30K, the loss was $10K,
and the deductible was $1K? - Answer: $9,000
NOTE: First look at the amount required and see if the amount carried was enough. If it meets
the 80% coinsurance, then the full amount is paid for a covered loss, minus any deductible.
Coverage C of the Commercial Building and Personal Property coverage form does NOT cover:
Property at a repair shop
Property at a dry cleaners
Page 4 of 56
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