What Do You Know About Commercial Property Insurance? Trivia Quiz

10 Questions | Total Attempts: 105

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What Do You Know About Commercial Property Insurance? Trivia Quiz

What Do You Know About Commercial Property Insurance? If you have a property there are a lot of risks that you may face and taking an insurance policy may be the best way to cushion yourself from the losses either partially or completely. Do take this quiz and see if you know the methods to follow to insure your commercial property.


Questions and Answers
  • 1. 
    If an applicant wants only property coverage - you should quote this under a CPP rather than BOP.
    • A. 

      True

    • B. 

      False

  • 2. 
    In order to qualify for the CPP Enhancement coverage you must have Commercial Auto & Commercial Fire on the policy.
    • A. 

      True

    • B. 

      False

  • 3. 
    If a business is located outside city limits, but within 5 miles of the responding fire department - the public protection class for the property will be...
    • A. 

      The protection class for the city in which the mailing address is listed

    • B. 

      Protection class 10

    • C. 

      Protection class 9

    • D. 

      We do not write property located outside of city limits

  • 4. 
    In order to ensure a building at replacement cost on a CPP, you must be within 80% of the actual replacement cost?
    • A. 

      True

    • B. 

      False

  • 5. 
    After suffering a loss, one of the main reasons businesses may not re-open their doors, or re-open and then be forced to close is.....
    • A. 

      No business income coverage

    • B. 

      Management inadequacy

    • C. 

      Loss of customers

    • D. 

      They are arsonists and now in prison

  • 6. 
    One of the main differences in covering business income on a CPP rather than on a BOP is...
    • A. 

      Fewer covered causes of loss

    • B. 

      There is no difference

    • C. 

      More covered causes of loss

    • D. 

      You must add and enter a limit on the CPP where as the BOP is built in

  • 7. 
    In order to insure a building at Replacement Cost on a BOP, you must be within 80% of the actual replacement cost?
    • A. 

      True

    • B. 

      False

  • 8. 
    You have a client that has a brand new building - they want to insure it at $50,000, which is what they purchased it for.  Your building valuation comes up at $500,000 to construct this building.  You are quoting a BOP so you are required to put $500,000 on the building in order to properly insure.  If you place $50,000 on the building and they suffer a $50,000 loss - based on coinsurance requirements, what amount would they be paid?
    • A. 

      $0

    • B. 

      $5,000

    • C. 

      $25,000

    • D. 

      $50,000

  • 9. 
    In order for a restaurant that cooks with grease to be eligible for coverage with Farm Bureau which items below must be in place
    • A. 

      Ansul Wet Fire Suppression System

    • B. 

      Class K Fire Extinguisher

    • C. 

      Hood and Duct Cleaning Service Contract

    • D. 

      Located in a good neighborhood

  • 10. 
    In order to be eligible for coverage with Farm Bureau, any habitational risk must have hard wired smoke detectors.
    • A. 

      True

    • B. 

      False

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