Download CPCU 551 Exam Questions and Answers: Property and Casualty Insurance and more Exams Commercial Law in PDF only on Docsity!
CPCU 551 – FOCUS EXAM 2025
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Loss Payment under Agreed Value - ANSWER[(Limit/Agreed Value) * Loss ] - Deductible Debris Removal Must be Reported in... - ANSWER180 days Standard Building and Personal Property (BPP) deductible - ANSWER$ Amount payable if coinsurance requirement not met - ANSWER[(Limit/(Value of Covered Property x Coinsurance %)) * Loss] - Deductible [(Did/Should) * Loss] - Deductible BPP Aggregate Limits: only for... - ANSWERPollution cleanup and removal, and electronic data
BPP Additional Coverages Subject to Occurrence Limits - ANSWERDebris Removal Fire Department Service Charge Increased Cost of Construction each coverage extension Business Personal Property includes - ANSWERFurniture and fixtures Machinery and equipment "Stock" All other personal property owned by you and used in your business Labor, materials or services furnished or arranged by you on personal property of others Your use interest as a tenant in improvements or betterments Leased personal property that you have a contractual responsibility to insure, unless otherwise provided for under Personal Property of Others Business Personal Property Temporarily in Portable Storage Units must be within how many feet of the covered property? - ANSWER100 feet Anti-concurrent causation - ANSWERCertain exclusions apply even if another cause is involved in the loss Basic and Broad Form Exclusions (subject to anti-concurrent causation language) - ANSWEROrdinance or Law Earth movement Governmental action Nuclear hazard Utility services War and military action Water Fungus, wet rot, dry Basic and Broad Form Exclusions (not subject to anti-concurrent causation language) - ANSWERArtificially generated electricity Explosion of steam boilers Mechanical breakdown Neglect Special Form Exclusions (not an exhaustive list) - ANSWERMost of basic and broad form exclusions Wear and tear Rust, corrosion, decay, deterioration, hidden/latent defects Smog Settling, cracking, shrinking or expanding Infestations and waste products of insects/birds/rodents/other animals Mechanical breakdown Dampness or dryness of atmosphere, changes or extremes in temperatures,
Smoke Aircraft Vehicles Sprinkler leakage Sinkhole collapse Volcanic action Difference in Conditions (DIC) - ANSWERPolicy that covers on an "all risk" basis to fill gaps in the insured's other coverage, especially for earthquake and flood Output Policy - ANSWERProvide broader coverage than standard forms, written to cover risks of direct physical loss other than those specifically excluded (and exclusions are similar to standard policies) Judgment rated Omit or suspend coinsurance requirements BI extension for Civil Authority coverage kicks in - ANSWER72 hours BI additional coverages - ANSWERCivil authority Alterations and new buildings Extended business income Interruption of computer operations BI Limit Calculation - ANSWERCoinsurance Basis is 12 mos. of loss (NI plus most expenses) Coinsurance Percentage = EML / coinsurance basis (rounded up) Limit = Coinsurance Percentage x Coinsurance Basis Equipment Breakdown insurance agreements - ANSWERProperty damage Expediting expenses Business income and extra expense (or extra exp. only) Spoilage damage utility interruption newly acquired premises Ordinance or law coverage Errors and omissions Brands and labels Contingent business income and extra expense (or extra exp. only) Farm Policy coverages - ANSWERA - Dwellings B - Other private structures appurtenant to dwellings C - Household personal property D - Loss of use E - Scheduled farm personal property
F - Unscheduled farm personal property G - Barns, outbuildings and other farm structures Mortgage Impairment Insurance Coverages - ANSWERA - Mortgage holder interest B - Property owned or held in trust C - Mortgageholders liability D - Real estate tax liability BOP Rating Variables - ANSWERTerritory Type of construction Public fire protection Occupancy of the building Presence of sprinklers Deductible BOP Coverage Differences (from BPP/BI forms) - ANSWER$2500 for fire dept. svc. charge (vice $1000) BI for up to a year (instead of an amount) BI from damage to dependent properties Money orders or counterfeit cash Forgery or alteration Glass expense Fire extinguisher recharge expense Electronic data - broader perils, higher limits Interruption of computer operations Fungi, dry rot, or wet rot BOP Extensions - ANSWERNewly acquired property Personal property off premises Outdoor property Personal effects Valuable papers and records Accounts receivable Business personal property temporarily in portable storage units m, Causes of Loss - Basic - ANSWERFire Lightning Explosion Real Property Exclusions - ANSWERLand Water Bridges Roadways, walks, etc. Retaining walls Bulkheads, pilings, piers, wharves, docks
