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CIC COMMERCIAL PROPERTY 2025
QUESTIONS AND ANSWERS .
Learning Objective 1A - Rights and Duties of the first Named Insured - correct answer - 1. Authorization to Cancel
- Receive Cancellation
- Make Changes with Insurer Consent
- Responsible for Payment of Premium
- Payee (Receiver) for Return Premium
Learning Objective 1B - How does Coinsurance apply? - correct answer - Amount Carried/Amount Required x Loss = Recovery-Deductible (Settlement) or
"Did Have"/"Should Have" x Loss = Recovery - Deductible
Components of "Common Policy Dec" IL DS 00 09 08 - correct answer - 1.Named Insured
- Mailing Address
- Policy Period
- Biz Description
- Premium for Coverage Parts
- Forms Applicable
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Components of "Common Policy Conditions" IL 00 07 11 98 - correct answer - 1. Cancellation
- Changes
- Examination of your Books
- Inspections & Surveys
- Premiums
- Transfer of Your Rights and Duties
Components of "Commercial Property Dec" CP DS 00 10 00 - correct answer - 1. Effective Date
- Named Insured
- Description of Premises
- Coverages Provided
Components of "Commercial Property Conditions" CP 00 90 07 08 - correct answer - A. Concealment, Misrepresentation, or Fraud
- Control of Property
- Insurance Under 2 or More Coverages
- Legal Action Against Us (within 2 years, only if all terms met)
- Liberalization (if coverage is broadened on newly issued policies, those
- No Benefit to Bailee (protects named Insured, not Bailee)
- Other Insurance (pro rata if other insurance)
- Policy Period, Coverage Territory (US, its territories, PR, and Canada) 2 / 3
policies already in force will have the benefit of the broadened coverage)
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Learning Objective 1C: Who has the rights of recovery in the event of a
loss (Review of "Transfer of Rights of Recovery Against Others to Us")? - correct answer - 1. Can waive rights or recovery against anyone....prior to a loss and in writing.
2. Can waive after a loss only if in writing and the responsible party is:
- Another Insured
- A business owned or controlled by Named Insured or a business that
- A tenant of the named insured. (Wegmans example)
owns or controls the named insured
ACV vs Replacement Cost - correct answer - ACV - Default valuation method of Property policies. Cost to replace covered property at time of the loss, minus depreciation.
RC - Valuation commonly desired, but usually must be requested. Replace covered property at a premises with like kind and quality in today's dollars.Triggered with (X) on Dec Page.
Agreed Value - correct answer - Optional coverage on CP Dec Page.Expiration date only. Suspends coinsurance clause. Can apply to covered property and/or Business Income.
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