APCI - Arizona Property and Casualty Insurance Exam

Question 1: An Arizona manufacturer in Chandler wants its building coverage, its general liability coverage and its commercial crime coverage issued together under one contract with one set of common declarations and one premium. Which of the following describes the contract it needs?

A monoline property policy

A businessowners policy

A commercial package policy

A surplus lines placement

Question 2: An Arizona commercial package policy lists a parent corporation and three subsidiaries in Tucson. The producer explains that one party carries administrative rights the others do not have under the common policy conditions. Which of the following describes those rights?

Notices, policy changes and return premium

Selecting counsel for liability claims

Approving endorsements before issuance

Waiving the deductible after a loss

Question 3: An Arizona wholesaler in Phoenix needs coverage on the building it owns, on the furniture and equipment it uses inside that building, and on the stock it holds for sale. Which commercial property form provides all three of those coverages?

Legal liability coverage form

Builders risk coverage form

Building and personal property coverage form

Business income coverage form

Question 4: An Arizona insured reviews the building and personal business property coverage form and asks which of several items on its premises would fall outside the definition of covered property. Which of the following is listed as property not covered?

Fixtures permanently attached to the building

Machinery used in the insured's operations

Furniture belonging to the insured

Land, water and growing crops

Question 5: An Arizona distributor buys a second warehouse in Goodyear during the policy term and moves stock into it before contacting its producer. A fire damages the stock two weeks later. Which feature of the commercial property form may respond?

The liberalization clause

The vacancy provision

The newly acquired property extension

The peak season endorsement

Question 6: A covered fire at an Arizona printing plant leaves twisted equipment and collapsed shelving that must be hauled off before rebuilding can begin. The insured asks which part of the commercial property form pays for that work. Which of the following applies?

Debris removal

Preservation of property

Fire department service charge

Pollutant cleanup and removal

Question 7: A wildfire approaches an Arizona insured's warehouse near Prescott, and the insured moves valuable stock to a rented building several miles away for safekeeping. The stock is damaged during that move. Which additional coverage under the commercial property form responds?

Debris removal

Increased cost of construction

Fire department service charge

Preservation of property

Question 8: An Arizona insured's commercial building sits empty for several months after a tenant leaves, and a fire causes substantial damage during the fifth month. Which of the following describes the effect of the building's condition on the claim?

Some perils drop out, other payments shrink

The entire claim is denied

Coverage continues without change

Only the deductible increases

Question 9: An Arizona developer in Buckeye is erecting a retail building and needs coverage on the structure as materials, labor and installed work steadily increase its value through the construction period. Which commercial property form is written for that need?

Legal liability coverage form

Business income coverage form

Condominium association coverage form

Builders risk coverage form

Question 10: A covered fire shuts down an Arizona machine shop in Mesa for four months while the building is repaired, and the owner loses the profit the shop would have earned along with the payroll and taxes that continue. Which coverage responds?

Extra expense coverage

Legal liability coverage

Business income coverage

Builders risk coverage

Question 11: An Arizona hospital must keep treating patients after a covered loss damages part of its facility, so it rents temporary modular space and leases replacement equipment at considerable cost. Which commercial property coverage is designed for that situation?

Business income coverage

Ordinance or law coverage

Legal liability coverage

Extra expense coverage

Question 12: An Arizona printing plant reopens after a covered fire, but customers who moved to competitors return only gradually, so earnings remain depressed for several weeks after operations resume. Which feature of business income coverage addresses that continuing shortfall?

Extra expense

Extended business income

Civil authority coverage

Ordinance or law coverage

Question 13: An Arizona tenant leases warehouse space in Tempe and negligently starts a fire that damages the landlord's building. The tenant carries no direct coverage on the structure but wants protection against the landlord's claim. Which form addresses that exposure?

Legal liability coverage form

Builders risk coverage form

Business income coverage form

Condominium commercial unit-owners form

Question 14: An Arizona insured selects the narrowest and least expensive of the three commercial property cause of loss forms and asks her producer to describe exactly how the coverage under it works. Which of the following correctly characterizes the form she chose?

Open perils subject to exclusions

Named perils plus collapse and water damage

A short list of named perils

Open perils with a percentage deductible

Question 15: An Arizona insured compares the middle commercial property cause of loss form with the narrowest one and asks what additional protection she gains by paying the higher premium the middle form carries. Which of the following correctly identifies the two additions?

Earthquake and flood

Collapse and water damage

Theft and mysterious disappearance

Equipment breakdown and spoilage

Question 16: An Arizona insured wants the widest available protection on a commercial building in Flagstaff and asks which cause of loss form shifts to the insurer the job of proving that a loss is not covered. Which of the following does that?

The special form

The broad form

The basic form

The reporting form

Question 17: An Arizona town enacts a code requiring any commercial building damaged beyond a stated share to be demolished and rebuilt to current standards. An insured's building suffers exactly that level of covered damage. Which endorsement funds the added expense?

Peak season limit of insurance

Value reporting form

Ordinance or law

Spoilage

Question 18: An Arizona retailer's inventory triples every autumn ahead of the holiday season and returns to normal levels by February. The owner wants a higher limit only during those heavy months without paying for it year round. Which endorsement fits?

Value reporting form

Ordinance or law

Spoilage

Peak season limit of insurance

Question 19: An Arizona grocer loses a walk-in cooler full of perishable stock when the compressor fails during a July heat wave in Yuma and the temperature inside the unit rises steadily for several hours. Which commercial property endorsement addresses that loss?

Peak season limit of insurance

Ordinance or law

Spoilage

Value reporting form

Question 20: An Arizona wholesaler's inventory swings widely and unpredictably from one month to the next, and the owner wants to pay a premium that follows the actual values on hand rather than a flat annual estimate. Which of the following addresses that request?

Peak season limit of insurance

Ordinance or law

Spoilage

Value reporting form

APCI Arizona Property and Casualty Insurance Exam - Set 5 - Part 1

Question 1: An Arizona manufacturer in Chandler wants its building coverage, its general liability coverage and its commercial crime coverage issued together under one contract with one set of common declarations and one premium. Which of the following describes the contract it needs?

Question 2: An Arizona commercial package policy lists a parent corporation and three subsidiaries in Tucson. The producer explains that one party carries administrative rights the others do not have under the common policy conditions. Which of the following describes those rights?

Question 3: An Arizona wholesaler in Phoenix needs coverage on the building it owns, on the furniture and equipment it uses inside that building, and on the stock it holds for sale. Which commercial property form provides all three of those coverages?

Question 4: An Arizona insured reviews the building and personal business property coverage form and asks which of several items on its premises would fall outside the definition of covered property. Which of the following is listed as property not covered?

Question 5: An Arizona distributor buys a second warehouse in Goodyear during the policy term and moves stock into it before contacting its producer. A fire damages the stock two weeks later. Which feature of the commercial property form may respond?

Question 6: A covered fire at an Arizona printing plant leaves twisted equipment and collapsed shelving that must be hauled off before rebuilding can begin. The insured asks which part of the commercial property form pays for that work. Which of the following applies?

Question 7: A wildfire approaches an Arizona insured's warehouse near Prescott, and the insured moves valuable stock to a rented building several miles away for safekeeping. The stock is damaged during that move. Which additional coverage under the commercial property form responds?

Question 8: An Arizona insured's commercial building sits empty for several months after a tenant leaves, and a fire causes substantial damage during the fifth month. Which of the following describes the effect of the building's condition on the claim?

Question 9: An Arizona developer in Buckeye is erecting a retail building and needs coverage on the structure as materials, labor and installed work steadily increase its value through the construction period. Which commercial property form is written for that need?

Question 10: A covered fire shuts down an Arizona machine shop in Mesa for four months while the building is repaired, and the owner loses the profit the shop would have earned along with the payroll and taxes that continue. Which coverage responds?

Question 11: An Arizona hospital must keep treating patients after a covered loss damages part of its facility, so it rents temporary modular space and leases replacement equipment at considerable cost. Which commercial property coverage is designed for that situation?

Question 12: An Arizona printing plant reopens after a covered fire, but customers who moved to competitors return only gradually, so earnings remain depressed for several weeks after operations resume. Which feature of business income coverage addresses that continuing shortfall?

Question 13: An Arizona tenant leases warehouse space in Tempe and negligently starts a fire that damages the landlord's building. The tenant carries no direct coverage on the structure but wants protection against the landlord's claim. Which form addresses that exposure?

Question 14: An Arizona insured selects the narrowest and least expensive of the three commercial property cause of loss forms and asks her producer to describe exactly how the coverage under it works. Which of the following correctly characterizes the form she chose?

Question 15: An Arizona insured compares the middle commercial property cause of loss form with the narrowest one and asks what additional protection she gains by paying the higher premium the middle form carries. Which of the following correctly identifies the two additions?

Question 16: An Arizona insured wants the widest available protection on a commercial building in Flagstaff and asks which cause of loss form shifts to the insurer the job of proving that a loss is not covered. Which of the following does that?

Question 17: An Arizona town enacts a code requiring any commercial building damaged beyond a stated share to be demolished and rebuilt to current standards. An insured's building suffers exactly that level of covered damage. Which endorsement funds the added expense?

Question 18: An Arizona retailer's inventory triples every autumn ahead of the holiday season and returns to normal levels by February. The owner wants a higher limit only during those heavy months without paying for it year round. Which endorsement fits?

Question 19: An Arizona grocer loses a walk-in cooler full of perishable stock when the compressor fails during a July heat wave in Yuma and the temperature inside the unit rises steadily for several hours. Which commercial property endorsement addresses that loss?

Question 20: An Arizona wholesaler's inventory swings widely and unpredictably from one month to the next, and the owner wants to pay a premium that follows the actual values on hand rather than a flat annual estimate. Which of the following addresses that request?

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