CIC Commercial Multiline Exam Latest Update

CIC Commercial Multiline Exam Latest Update 2024-2025 210 Questions and 100% Verified Correct Answers Guaranteed

2 ways to provide bailee coverage - CORRECT ANSWER: -legal liability basis (to

trigger coverage the bailee must be legally liable for the damage to bailors property, what would a prudent person do is the deciding factor on if negligence was involved)

• direct damage basis (to trigger coverage the bailee does not have to be legally liable

for the damage, goodwill policy)

3 coverage extensions in builders risk - CORRECT ANSWER: - debris removal

• emergency removal (preservation of property- limits to 10 days)
• limited fungus coverage

3 types of carriers used to transport goods - CORRECT ANSWER: - common

• contact
• private

• unique challenges for projects under construction (builders risk) - CORRECT

ANSWER: - changing/increasing values and exposures

• changing insurable interest as project develops
• there is property to be covered that is no located on the property site (ex. warehouse

for materials)

• projects in the course of construction are more susceptible to loss than are already

completed building or structures

• examples of exposures to loss when dealing with builders risk - CORRECT ANSWER:
• building or structure under construction
• materials and supplies at a job site
• materials and supplies NOT at job site but at TEMP location
• temporary structures (dumpster or portapotty)
• property in transit
• debris removal
• soft costs
• business income or rental value
• materials and supplies of others in the CCC of insureds

additional coverages that can be added to soft costs

additional exclusions under builders risk policy - CORRECT ANSWER: - extra expense

• rental income
• coverage extensions can include delay caused by ordinance or law, interruption by

civil authority, limited fungus coverage)

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• interference by strikers
• suspension or cancellation of a contract
• break of contract penalties
• changes in plans, designs, or specifications
• fines or penalties
• cost to test for pollutants

Apply conditions of an EPLI policy to claims situations. - CORRECT ANSWER: 1. duties in the event of a claim or wrongful act that may result in a claim

• **Consent to settle (hammer cause)
• Transfer of duties when limit of insurance is used up
• Representations and separation of insured (application must be true)

Apply the defense provision of EPLI Policies (LO6) - CORRECT ANSWER: - Most

include right and duty to defend

• No duty to defend if a wrongful act is not covered
• Some EPLI policies give the insured the right to select defense, it big.
• The insurer typically has the right to investigate and settle not the insured
• *** Cost of defense is within the limits
• Defense expenses ty typically are in excess of the deductible or retention
• Defense ends when limits have been exhausted by payment of defense expenses,

judgements or settlements

• Definition of "defense expenses" - cost investigate defend, or settle a claim, defense

expense do not include insurer or insured internal claims handling expenses,

Apply the definition of wrongful act as contained in an EPLI policy. (LO5) - CORRECT

ANSWER: Many coverage broad range of wrongful acts, but each policy defines

(named peril coverage)

wrongful acts no standard definition may include:

Discrimination Sexual Harassment Retaliation Wrongful termination

Wrongful employment practices Breach of employment Failure to grant tenure Workplace tort Discrimination Wrongful demolition, termination....

bailee coverages in other contracts - CORRECT ANSWER: - inland marine can cover

them 2 / 4

• floaters can cover the personal property that is in the bailees care ,custody, and

control

• commercial property (limited coverage)
• garage keepers coverage

bailor coverages and examples

why do we need coverage for bailment exposure - CORRECT ANSWER: - covers the

named insured property while in possession of others

• written on a scheduled basis (don't trust people)

patterns and dies floater garment contractors floater

bailment exposure is excluded in other policies like CGL exclusion J- CCC, and in many policies the no benefit to bailee condition

builders risk can be written to cover - CORRECT ANSWER: - new construction

• additions to existing building or structures
• renovations, repair, or remodeling

Compare and contract the insuring agreement known as pay on behalf and indemnify

(LO5) - CORRECT ANSWER: Pay on Behalf of

• The insure has stricter control of defense, investigation or settlements
• The insurer pays damages directly to third party on behalf of

-The insure has the duty to defend when the underlying does not provide coverage

Indemnify

• strict indemnity (insured uses their own funds directly to pay claims and insurer

reimburses)

• based on legal obligations to pay (insured still has control but indemnity is based on

legal obligation to pay - insurer write checks to insured)

conditions found in cyber policies by the insured and insurer before, during, and after a

claim or loss - CORRECT ANSWER: - subrogation

• representations (must be correct)
• changes in exposure (acquisitions or creation of organization, acquisition of named

insured, cessation of subsidiaries)

• other insurance (may be excess coverage)
• separation of insureds (2 named insureds for ex)
• duties in the event of claim or loss
• valuation (USD)
• confidentiality (cannot say you have extortion coverage)
• territory (worldwide, limited worldwide, universe)

coverage extension for contractors equipment floater - CORRECT ANSWER: - debris

removal 3 / 4

Define "Self-Insured Retention" (SIR) and apply it (LO2) - CORRECT ANSWER: SIR is the dolllar amount listed in the declarations paid by the named insured before the excess insurance becomes applicable

Applies only when the excess policy provide broader insurance protection Does not apply when the umbrella drops down over exhausted limits or when exceee over underlying limits.SIR may be written per occurrence or policy period basis

definition of claim, loss and coverage territory - CORRECT ANSWER: claim- written demand for monetary relief

loss- total sum in which any insured becomes legally obligated to pay as a result of a claim

coverage territory- varies, can be anywhere in the world

Describe "money" "securities", other property., "theft" and "employee" as found in the

Commercial Crime Coverage Form - CORRECT ANSWER: money- coins, cash, has a

face value; traveler's checks and money orders; deposits in insured's account at financial institution

securities- Tokens, Tickets, revenue, other stamps;

Other property- tangible property, No Electronic Data

Theft- unlawful taking of property to the deprivation of the insured.

Employee:

-Current or past (30 day window) - MUST be compensated AND you have direct control over services performed for you -Temp/leased -Former Employee who is now a consultant -intern -Merger or Conslidated employees -Managers, directors, trustees

NOT EMPLOYEES: AGENTS, BROKERS, FACTORS, CONSIGNEES, INDEPENDENT

CONTRACTORS

Describe and apply the coverage provided by the Insuring Agreement A.1. Employee

Theft - CORRECT ANSWER: 1. Covered Property= money, securities, other property

from direct theft from an employee.

• Property could be held by N.I. or something they are legally liable for
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