Docsity
Log inSign up
Docsity
Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity

Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips
Guidelines and tips
Sell on Docsity
Sell on Docsity
Docsity AI
Docsity AI
Log inSign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search for your university

Find the specific documents for your university's exams

Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents
download point icon20 Points

For each uploaded document

Answer questions
download point icon5 Points

For each given answer (max 1 per day)

All the ways to get free points
Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

Condominium Insurance Coverage, Exams of Economics

Chamberlain College of NursingEconomics

An overview of the key features and considerations related to condominium insurance coverage. It covers topics such as the condominium association coverage form, the condominium commercial unit-owners coverage form, the builders risk coverage form, and the differences between the standard property policy (spp) and the building and personal property coverage form (bpp). The importance of understanding the division of property interests between unit owners and the condominium association, as well as the specialized insurance needs of condominiums, cooperatives, and planned unit developments. It also covers topics like leasehold interest insurance, legal liability coverage, and the factors to consider when determining appropriate insurance limits. Overall, this document offers valuable insights for condominium owners, associations, and insurance professionals to navigate the complexities of condominium insurance coverage.

Typology: Exams

2023/2024

Available from 08/23/2024

john-master-2
john-master-2 🇺🇸

5

(1)

1.2K documents

1 / 7

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
CPCU 551 Chapter 5 Exam2 Questions with Answers-
Guaranteed Success
1. A condominium association agreement - Correct Answer C. Clarifies the rights
and responsibilities of unit owners and the association.
2. Which one of the following describes an aspect of a planned unit development? -
Correct Answer B. The occupant has exclusive ownership of his unit.
3. Condominium unit owners may wish to limit the insurance coverage on their units
- Correct Answer D. To avoid duplicating coverage maintained by the
association.
4. The Business Park Condominium Association is insured under the Condominium
Association Coverage Form and follows the single entity concept. Which one of
the following losses would be covered under this form? - Correct Answer D. The
club house of the condominium association is vandalized, resulting in extensive
damage to its furniture.
5. One way in which the Condominium Association Coverage Form conditions are
different from the Building and Personal Property Coverage Form conditions is
which of these? - Correct Answer B. The Loss Payment condition states that if
the association has designated an insurance trustee, then the insurer may pay
claims to the trustee.
6. The Condominium Association Coverage Form is designed for insuring - Correct
Answer C. Appliances, such as dishwashers, under the building coverage.
7. Which one of the following statements is true regarding the Condominium
Additional Provisions Endorsement (CP 01 07)? - Correct Answer D. The
endorsement requires the insurer to give at least thirty days' written notice of
policy nonrenewal to the first named insured
8. Cromely and Company is purchasing a commercial condominium unit that it will
occupy. Cromely wants to insure its business personal property along with any
improvements that it makes to the unit. Which one of the following forms would
meet its needs? - Correct Answer C. Condominium Commercial Unit-Owners
Coverage Form
9. A situation that suggests a need for optional miscellaneous real property
coverage is - Correct Answer D. A patio with a grill, table, and benches that was
built by a unit owner and is only used to entertain the unit owner's business
clients.
pf3
pf4
pf5

Partial preview of the text

Download Condominium Insurance Coverage and more Exams Economics in PDF only on Docsity!

CPCU 551 Chapter 5 Exam2 Questions with Answers-

Guaranteed Success

  1. A condominium association agreement - Correct Answer C. Clarifies the rights and responsibilities of unit owners and the association.
  2. Which one of the following describes an aspect of a planned unit development? - Correct Answer B. The occupant has exclusive ownership of his unit.
  3. Condominium unit owners may wish to limit the insurance coverage on their units
    • Correct Answer D. To avoid duplicating coverage maintained by the association.
  4. The Business Park Condominium Association is insured under the Condominium Association Coverage Form and follows the single entity concept. Which one of the following losses would be covered under this form? - Correct Answer D. The club house of the condominium association is vandalized, resulting in extensive damage to its furniture.
  5. One way in which the Condominium Association Coverage Form conditions are different from the Building and Personal Property Coverage Form conditions is which of these? - Correct Answer B. The Loss Payment condition states that if the association has designated an insurance trustee, then the insurer may pay claims to the trustee.
  6. The Condominium Association Coverage Form is designed for insuring - Correct Answer C. Appliances, such as dishwashers, under the building coverage.
  7. Which one of the following statements is true regarding the Condominium Additional Provisions Endorsement (CP 01 07)? - Correct Answer D. The endorsement requires the insurer to give at least thirty days' written notice of policy nonrenewal to the first named insured
  8. Cromely and Company is purchasing a commercial condominium unit that it will occupy. Cromely wants to insure its business personal property along with any improvements that it makes to the unit. Which one of the following forms would meet its needs? - Correct Answer C. Condominium Commercial Unit-Owners Coverage Form
  9. A situation that suggests a need for optional miscellaneous real property coverage is - Correct Answer D. A patio with a grill, table, and benches that was built by a unit owner and is only used to entertain the unit owner's business clients.
  1. One purpose of the miscellaneous real property coverage which can be added to the Condominium Commercial Unit-Owners Coverage Form is to insure - Correct Answer D. Condominium property that the named insured has a duty to insure, such as a storage building.
  2. What two additional coverages are in the Building and Personal Property Coverage Form but not the Builders Risk Coverage Form? - Correct Answer D. Increased cost of construction and electronic data
  3. A warehouse under construction is insured by its owner under an unendorsed ISO Builders Risk Coverage Form with the Causes of Loss—Special Form. Which one of the following losses would be covered under this policy? - Correct Answer C. Over the weekend, the contents and several walls of the warehouse building were spray painted by vandals.
  4. The Builders Risk Coverage Form is designed to - Correct Answer D. Be issued at policy inception in an amount of insurance equal to the building's completed value.
  5. The Property Not Covered section of the Builders Risk Coverage Form applies to what? - Correct Answer A. Signs not attached to the building
  6. Both the Standard Property Policy (SPP) and the Building and Personal Property Coverage Form (BPP) with a Basic Form - Correct Answer C. Can exclude the perils of windstorm and hail.
  7. A retail store is insured for building and business personal property under the Standard Property Policy (SPP). Only the basic mandatory causes of loss are included in the policy. Which one of the following losses would be covered under this form? - Correct Answer D. Lightning struck the building causing severe damage to the building and the inventory inside the building.
  8. Comparing vandalism coverage of the Standard Property Policy (SPP) with the Building and Personal Property Coverage Form, also referred to as the BPP, there is no vandalism coverage for buildings vacant after how many days for each policy? - Correct Answer B. 30 days for SPP and 60 days for BPP
  9. The Standard Property Policy (SPP) could potentially provide coverage that would be denied by the Building and Personal Property Coverage Form, also referred to as the BPP, if a building's occupancy is what percent? - Correct Answer A. Under 31%
  10. When using the Legal Liability Coverage Form, what should be considered when determining the appropriate limit of insurance? - Correct Answer D. The

room with table and chairs. The building they are housed in is owned by a condominium association. The association has a Bare-Walls Concept with regard to ownership in the unit based on statutes and the association agreement. A tornado caused the roof to be blown off the unit that the architectural firm occupies. There is extensive damage to both the exterior and interior walls, floors, and most of the furnishings within the unit. Which one of the following is true regarding coverage for the damage? - Correct Answer D. The architectural firm's Condominium Commercial Unit Owners Coverage Form will provide coverage for the flooring as well as interior walls and doors they have constructed

  1. Baker Contractors was in the process of building two houses in a subdivision. They were not yet under contract for sale and each of the houses was insured under a separate, but identical, ISO Builders Risk Coverage Form with a Causes of Loss—Broad Form. Baker completed construction on the first house on June
    1. Completion of the second house was scheduled for the end of August, but Baker ran out of money on August 1 and planned to temporarily halt construction activities for two weeks until they received the necessary funds to continue. On August 6, both of the houses were destroyed by a covered cause of loss. Which one of the following statements concerning insurance recovery on these losses is most accurate? - Correct Answer B. Both houses would be covered under Baker's existing insurance policies.
  2. Sarah owns an ice cream shop that operates in a very old building. The structure is so decrepit that it has been deemed a "distressed risk" and is considered unacceptable in the standard insurance market. What kind of coverage should Sarah seek out to insure her ice cream shop? - Correct Answer A. Standard Property Policy
  3. The dividing line between unit owners' property interests and the association's interests is important when assessing condominium loss exposures. Under the bare walls concept, the condominium association - Correct Answer B. Has no interest in property within the unit's walls.
  4. In regard to condominium insurance requirements, the coverage - Correct Answer A. Needs of a condominium association are similar to the building insurance needs of a building owner or landlord.
  5. Condominiums, cooperative corporations, and planned unit developments may each require specialized policies - Correct Answer D. Due to their combined ownership nature.
  6. Which one of these statements is correct? - Correct Answer B. Besides the Loss Payment, Unit-Owner's Insurance, and Waiver of Rights of Recovery conditions, most of the conditions of the Condominium Association Coverage Form are the same as those of the BPP.
  1. The Condominium Association Coverage Form does not cover which of the following? - Correct Answer D. Business personal property that is individually owned by a unit owner
  2. The ISO Condominium Commercial Unit-Owners Coverage Form - Correct Answer D. Contains an exclusion that coordinates the unit owner's coverage with the condominium association's coverage.
  3. Unless the insurer agrees otherwise, coverage under the Builders Risk Coverage Form ceases how many days after an insured building is occupied? - Correct Answer C. 60
  4. Buildings under construction present unique exposures, such as the increased likelihood that what two perils will occur? - Correct Answer A. Theft and fire
  5. Buildings under construction have different exposures than completed buildings. One example of a difference is - Correct Answer C. Increased susceptibility to fire hazards, as fire protection is not fully installed.
  6. Property covered under the unendorsed ISO Builders Risk Coverage Form includes - Correct Answer C. Building materials and supplies intended to become a permanent part of the building.
  7. A small retail chain needs building and personal property coverage for a warehouse it recently acquired. It has long term plans to rebuild the structure due to its distressed construction and lack of public water supply. In the interim, the chain's best option is to purchase a - Correct Answer A. Standard Property Policy (SPP) to cover the warehouse.
  8. An important feature of the Standard Property Policy (SPP) is - Correct Answer B. The flexibility of being able to limit the perils covered.
  9. Comparing the Standard Property Policy (SPP) with the Building and Personal Property Coverage Form, also referred to as the BPP, which coverage form permits unlimited unoccupancy? - Correct Answer B. The SPP does not, and the BPP does.
  10. How does the Standard Property Policy (SPP) compare with the Building and Personal Property Coverage Form, also referred to as the BPP, in terms of flexibility in limiting coverage? - Correct Answer C. The SPP underwriter has more flexibility than the BPP underwriter.
  11. The Commercial General Liability (CGL) Coverage Form provides "fire legal liability" or "damage to premises rented to you". The "fire legal liability" coverage
  1. Coolstone Tires suffers a fire at its warehouse. One of Coolstone's managers asks a manager at Sierra Autos if Coolstone can store some of their inventory in Sierra's warehouse until their own warehouse is rebuilt. Because the two companies have had a good working relationship in the past, the manager at Sierra's warehouse agrees. Before this happens, however, the manager at Sierra wishes to purchase a Legal Liability Coverage Form. Which one of the following statements is true with regards to the Legal Liability Coverage Form Sierra is seeking to buy? - Correct Answer C. The rate for the form will be lower than the typical rates for direct property insurance.