Free Commercial Property Policies Practice Questions
Vermont Property & Casualty exam (series 14-31) — 68 practice questions.
Subtopics: Building and personal property, Causes of loss, Business income, Extra expense, Ordinance or law, Builders risk, Vacancy, Agreed value, Coinsurance calculation, Blanket coverage, Causes of loss forms, Commercial package, Equipment breakdown, Coinsurance, Inland marine, Reporting form, Causes of loss special form, Peak season endorsement, Spoilage coverage, Causes of loss basic form, Newly acquired property, Functional valuation, Causes of loss broad form, Debris removal, Brands and labels, Pollutant cleanup, Legal liability coverage form, Tenant improvements, Earthquake coverage, Additional coverages, Coverage extensions, Valuation, Optional coverages, Functional building valuation
Read the Commercial Property Policies study guide
Sample questions & answers
1. The Building and Personal Property (BPP) coverage form insures:
Buildings and business personal property at the premises
The Building and Personal Property Coverage Form covers direct physical loss to the described building and business personal property at the premises shown in the declarations. It is a property form, not a liability or workers compensation form.
2. Which commercial property causes-of-loss form provides the broadest, open-perils coverage?
Special form
Commercial property perils come from a separate causes-of-loss form. The basic and broad forms list named perils, while the special form covers direct physical loss unless the loss is excluded or limited.
3. Business income (interruption) coverage primarily pays for:
Lost net income and continuing normal expenses
Business income coverage pays the net income the business would have earned plus continuing normal operating expenses, including payroll, during the period of restoration after a covered loss. Building repairs are covered under the property form, not here.
4. Extra expense coverage helps a business pay for:
Added costs to keep operating after a loss
Extra expense is the necessary cost, during the period of restoration, that the business would not have incurred without the covered loss, for example renting temporary space to stay open.
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Practice: Commercial Property Policies
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
