CIC Commercial Property study plan

Map the structure of the commercial property coverage form: identify the five coverage parts (building, business personal property, personal property of others, business income, extra expense) and explain what each insures.

Differentiate the three valuation methods (ACV, replacement cost, functional replacement cost) and compute a sample loss payment under each.

Explain the coinsurance clause, including the formula for determining the required limit and the penalty for underinsurance, and calculate the payment on a sample underinsured loss.

List and describe at least six endorsements that modify the commercial property coverage form (e.g., agreed value, inflation guard, replacement cost, extended business income, ordinance or law).

Analyze the causes of loss forms (basic, broad, special) and classify at least 15 perils as covered, excluded, or subject to limitations under each form.

Explain the difference between named-peril and open-peril (special) coverage and how the burden of proof shifts.

Identify the key exclusions in the special form (e.g., wear and tear, faulty workmanship, mechanical breakdown) and the exceptions that restore coverage.

Describe the coverage triggers and limitations for water damage, theft, and glass breakage under the commercial property form.

Explain how the causes of loss forms interact with the commercial property coverage form and endorsements (e.g., changes in the causes of loss form via endorsement).

Describe at least five endorsements that modify causes of loss (e.g., equipment breakdown, spoilage, utility services, earthquake, flood) and the coverage each adds or restricts.

Analyze the equipment breakdown endorsement: covered equipment, key exclusions, and how it differs from a standard boiler and machinery policy.

Apply the special form exclusions to a case scenario and determine whether a loss is covered, excluded, or subject to a limitation.

Compare the three causes of loss forms in detail, including the specific perils covered under basic and broad forms and the open-peril approach of the special form.

Explain the coverage for collapse, water damage, and fungus/mold under the causes of loss forms, including any sub-limits or waiting periods.

Describe the endorsements that add or remove perils (e.g., earthquake, flood, windstorm, hail) and how they interact with deductibles.

Calculate the deductible application for a sample loss under each causes of loss form, including percentage deductibles for named storms.

Explain the business income coverage form: the definition of business income, the period of restoration, and the extra expense coverage.

Differentiate between business income and extra expense, and describe how they work together in a loss scenario.

Describe the extended business income endorsement and the extended period of indemnity, and calculate the additional coverage period.

Identify the key exclusions and limitations in time element coverages (e.g., waiting periods, ordinary payroll, off-premises utility services).

Analyze the business income and extra expense endorsements (e.g., agreed value, maximum period of indemnity, monthly limit of indemnity, premium adjustment).

Explain the contingent business income coverage and the difference between dependent properties and contributing properties.

Describe the leasehold interest coverage and how it responds to a loss.

Review the interaction between time element coverages and property coverages, including how coinsurance applies to business income.

Integrate knowledge across all three domains by analyzing a comprehensive case study that includes property damage, causes of loss, and time element losses.

Identify coverage gaps and recommend appropriate endorsements for a given commercial property risk.

Calculate the total claim payment for a complex loss, applying coinsurance, deductibles, and time element limits.

Review the key exclusions and limitations across all domains and explain how they interact.

Review weak areas identified in the practice exam and re-study the corresponding topics.

Memorize key definitions, coverage triggers, and exclusions using flashcards or a summary sheet.

Practice time management by completing a timed 50-question exam under test conditions.

Finalize a one-page quick-reference sheet for each domain to use for last-minute review.