100+ Free CIC Commercial Property Practice Questions

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Under the ISO CP 00 10 Building and Personal Property Coverage Form, which coverage applies to the insured's machinery and equipment used in the business?

Coverage A - Building

Coverage B - Your Business Personal Property

Coverage C - Personal Property of Others

Coverage D - Property in Transit

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2026 Statistics

Key Facts: CIC Commercial Property Exam

70%

Passing Score

140 of 200 points

2 hours

Exam Time

Essay format

$425

Course + Exam Fee

Per CIC institute

16 hours

Course Length

Two-day institute

5 of 7

Institutes Required

For full CIC designation

5 years

Completion Window

From first passed exam

The CIC Commercial Property exam is a 2-hour essay exam requiring 70% (140/200 points) to pass, taken at the conclusion of a two-day, 16-hour course costing approximately $425. The exam tests scenario-based application of ISO Commercial Property forms (CP 00 10 BPP, CP 00 17 Condo), Causes of Loss forms (CP 10 10/20/30), Business Income & Extra Expense (CP 00 30), Inland Marine (filed and non-filed classes), Equipment Breakdown, Crime (CR 00 20), BOP, Builders Risk, and key endorsements such as Ordinance or Law (CP 04 05) and Spoilage (CP 04 40).

Sample CIC Commercial Property Practice Questions

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1Under the ISO CP 00 10 Building and Personal Property Coverage Form, which coverage applies to the insured's machinery and equipment used in the business?

A.Coverage A - Building

B.Coverage B - Your Business Personal Property

C.Coverage C - Personal Property of Others

D.Coverage D - Property in Transit

Explanation: Under CP 00 10, Coverage B - Your Business Personal Property covers the insured's machinery, equipment, furniture, fixtures, stock, and other personal property used in the business. Coverage A covers buildings; Coverage C covers personal property of others in the insured's care, custody, or control. There is no Coverage D in CP 00 10 (transit is typically covered under inland marine).

2Under CP 00 10, Coverage A - Building includes which of the following without needing to be added by endorsement?

A.Outdoor signs not attached to the building

B.Land on which the building is situated

C.Permanently installed fixtures, machinery, and equipment

D.Cost to research, replace, or restore lost information on valuable papers

Explanation: Coverage A - Building under CP 00 10 includes the building described in the Declarations along with permanently installed fixtures, machinery, and equipment. Land is specifically excluded. Outdoor signs not attached to the building have a sublimit under Coverage Extensions but are not part of Coverage A. Valuable papers research costs require a separate inland marine form or extension.

3An insured carries $800,000 of Coverage B Business Personal Property on CP 00 10 with 80% coinsurance. At the time of a covered $100,000 loss the actual replacement cost value of all BPP at the location was $1,250,000. The deductible is $1,000. How much will the insurer pay?

A.$79,000

B.$80,000

C.$99,000

D.$100,000

Explanation: Coinsurance penalty applies because the insured did not carry the required amount. Required = 80% x $1,250,000 = $1,000,000. Did/Should = $800,000/$1,000,000 = 0.80. Loss payment before deductible = 0.80 x $100,000 = $80,000. Subtract the $1,000 deductible = $79,000. The Did/Should formula is on the CIC Commercial Property exam in nearly every sitting.

4Under CP 00 10, business personal property is automatically covered while temporarily within how many feet of the described premises?

A.100 feet

B.250 feet

C.500 feet

D.1,000 feet

Explanation: CP 00 10 extends coverage to business personal property while in or on a vehicle, or otherwise in the open (or in a vehicle), within 100 feet of the building or 100 feet of the described premises (whichever distance is greater under more recent revisions). Note: CP 00 10 was revised in 2012 to broaden this to 100 feet of the described premises. The exam tests the 100-foot rule for off-premises BPP at the described location.

5Which of the following is NOT covered under Coverage A - Building of CP 00 10?

A.Permanently installed machinery and equipment

B.Materials and supplies within 100 feet of the premises used to maintain the building

C.The cost to replace the foundation that is below the surface of the lowest basement floor

D.Outdoor fixtures attached to the building

Explanation: Coverage A - Building specifically excludes the cost to replace foundations below the surface of the lowest basement floor (or the surface of the ground if there is no basement). Permanently installed fixtures, machinery, equipment, and outdoor fixtures attached to the building ARE covered, as are maintenance materials within 100 feet. Underground foundations require a separate Foundation Coverage endorsement.

6Coverage C - Personal Property of Others under CP 00 10 pays losses on behalf of:

A.The named insured only

B.Employees of the named insured

C.The owner of the property of others

D.The mortgagee listed in the Declarations

Explanation: Coverage C - Personal Property of Others pays for direct physical loss to property of others in the insured's care, custody, or control. Loss payments are made directly to the owner of the property, not the named insured. This protects the insured from bailee exposures but the proceeds belong to the property owner.

7An insured wants single property limit applying to BOTH Building and BPP at multiple locations, with the limit applying separately at each location to the highest-valued property. Which limit option achieves this?

A.Specific limits for each coverage at each location

B.Blanket limit on the Statement of Values

C.Agreed Value endorsement (CP 04 30)

D.Reporting Form CP 13 60

Explanation: A blanket limit applies a single limit across multiple buildings, multiple coverages, or multiple locations as designated in the Declarations. A Statement of Values (SOV) supports the blanket. Specific limits attach a separate limit to each item at each location. Agreed Value waives coinsurance but does not blanket the limits. Reporting forms adjust limits monthly based on reported values.

8The Agreed Value option (activated by entering an Agreed Value amount in the Declarations) does what?

A.Automatically increases limits 8% annually

B.Suspends the coinsurance condition for the items shown

C.Pays replacement cost without depreciation

D.Eliminates the deductible on partial losses

Explanation: Agreed Value suspends the coinsurance condition during the policy period for the property to which the option applies, provided the insured has submitted a current Statement of Values. The carrier and insured agree the limit reflects an adequate amount of insurance. It does not change valuation method (separate Replacement Cost option) and does not affect deductibles.

9Under CP 00 10 valuation, if the Replacement Cost option is NOT selected, how is a covered building loss settled?

A.Replacement cost

B.Actual cash value

C.Functional replacement cost

D.Stated amount

Explanation: Without a Replacement Cost endorsement or option election in the Declarations, CP 00 10 settles losses on an Actual Cash Value (ACV) basis - generally replacement cost less depreciation. Replacement Cost must be activated in the Declarations and obligates the insured to actually repair or replace before recovering depreciation withheld. Functional Replacement Cost is added by separate endorsement (CP 04 38).

10Which form is used to insure the building owned by a condominium association along with fixtures, improvements, and alterations and appliances inside individual units when the bylaws make the association responsible?

A.CP 00 10 Building and Personal Property Coverage Form

B.CP 00 17 Condominium Association Coverage Form

C.CP 00 18 Condominium Commercial Unit-Owners Coverage Form

D.BP 00 03 Businessowners Coverage Form

Explanation: CP 00 17 Condominium Association Coverage Form is designed for the condo association and provides building coverage including fixtures, improvements, alterations, and appliances inside individual units when the condo bylaws make the association responsible (single-entity / all-in approach). CP 00 18 is for the unit-owner of a commercial condo. CP 00 10 is the general BPP form.

About the CIC Commercial Property Exam

The CIC Commercial Property institute is one of five courses leading to the Certified Insurance Counselor (CIC) designation from the Risk & Insurance Education Alliance (formerly The National Alliance). The course is a two-day intensive covering ISO Commercial Property forms (CP 00 10 Building & Personal Property and CP 00 17 Condominium), Causes of Loss forms (Basic, Broad, Special), Business Income & Extra Expense (CP 00 30), Businessowners Policy (BOP), Inland Marine coverages (filed and non-filed), Equipment Breakdown, Crime (CR 00 20), Builders Risk, and key property endorsements. It concludes with a two-hour essay exam requiring 70% to pass.

Questions

100 scored questions

Time Limit

2 hours

Passing Score

70%

Exam Fee

$425 per course (Risk & Insurance Education Alliance)

CIC Commercial Property Exam Content Outline

25%

ISO Commercial Property Forms

CP 00 10 Building and Personal Property Coverage Form (Coverage A Building, B Business Personal Property, C Personal Property of Others), CP 00 17 Condominium Association/Commercial Unit Owners forms, coinsurance, valuation (ACV/RC/agreed value), blanket vs. specific limits.

15%

Business Income & Extra Expense

CP 00 30 Business Income (and Extra Expense) Coverage Form, CP 00 32 Business Income without Extra Expense, period of restoration, 72-hour waiting period, coinsurance and agreed value, dependent properties, civil authority, utility services time element.

15%

Businessowners Policy (BOP)

BOP package combining property, business income (built-in 12-month ALS), and CGL for eligible small/mid-size risks; ISO BP 00 03; eligibility rules; built-in coverages and key endorsements; differences between BOP and monoline CP.

15%

Inland Marine

Filed (controlled) vs. non-filed (uncontrolled) classes, Nationwide Marine Definition, Builders Risk (CP and inland marine forms, soft costs CP 11 36), Bailee customer goods, Motor Truck Cargo, Contractors Equipment, Installation Floater.

10%

Equipment Breakdown

Equipment Breakdown Protection Coverage Form (formerly Boiler & Machinery), covered equipment, mechanical/electrical breakdown, expediting expenses, spoilage, hazardous substances, ammonia contamination, utility interruption.

10%

Crime Insurance

ISO Commercial Crime CR 00 20 (loss sustained) and CR 00 21 (discovery), employee theft, forgery or alteration, computer fraud, funds transfer fraud, money and securities (inside/outside premises), money orders and counterfeit money.

10%

Property Endorsements & Causes of Loss Forms

CP 10 10 Basic, CP 10 20 Broad, CP 10 30 Special Causes of Loss; Ordinance or Law (CP 04 05); Spoilage (CP 04 40); debris removal sublimit (25% of loss plus limit); pollutant cleanup; agreed value; peak season; protective safeguards.

How to Pass the CIC Commercial Property Exam

What You Need to Know

Passing score: 70%
Exam length: 100 questions
Time limit: 2 hours
Exam fee: $425 per course

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CIC Commercial Property Study Tips from Top Performers

1Memorize the structure of CP 00 10 - Coverage A Building, Coverage B Business Personal Property, and Coverage C Personal Property of Others - including the 100 feet/250 feet of premises rule for off-premises BPP.

2Practice 80% coinsurance penalty calculations: (Did/Should) x Loss - Deductible. Be ready to compute partial payments in scenario questions.

3Know the three Causes of Loss forms cold: CP 10 10 Basic (named perils), CP 10 20 Broad (Basic plus 4 perils), CP 10 30 Special (open perils with exclusions). The exam loves to test which form covers a given peril.

4For business income, master the 72-hour waiting period for utility services, the period of restoration definition, and how the Agreed Value option suspends coinsurance.

5Differentiate filed vs. non-filed inland marine and remember that Builders Risk soft costs are added via CP 11 36 (or via inland marine builders risk forms).

Frequently Asked Questions

What is the CIC Commercial Property institute?

CIC Commercial Property is one of five institute courses leading to the Certified Insurance Counselor (CIC) designation from the Risk & Insurance Education Alliance. It is a two-day, approximately 16-hour course that concludes with an optional 2-hour essay exam. Candidates may apply this course toward the five-course CIC requirement (5 of 7 institutes; or 4 CIC plus 1 CRM/CPRM).

How much does the CIC Commercial Property course and exam cost?

The CIC Commercial Property course costs approximately $425 (with published Alliance pricing typically ranging $445-$485 depending on format and host). The fee includes one attempt at the end-of-course essay exam. Full CIC designation pathways run roughly $2,225-$2,425 across all five required institutes. Pricing varies by format (in-person, livestream, self-paced) and chapter.

What is the passing score and exam format?

The CIC Commercial Property exam is a 2-hour essay-style exam with multiple short-answer/scenario questions worth a combined 200 points. The passing score is 70% (140 of 200 points). The exam emphasizes practical scenario analysis of ISO Commercial Property forms, business income calculations, coinsurance penalties, and coverage triggers rather than pure memorization.

What ISO forms are tested on the CIC Commercial Property exam?

Heavily tested ISO forms include CP 00 10 (Building and Personal Property), CP 00 17 (Condominium Association/Commercial Unit Owners), CP 00 30 (Business Income with Extra Expense), CP 00 32 (Business Income without Extra Expense), Causes of Loss forms CP 10 10 Basic / CP 10 20 Broad / CP 10 30 Special, plus endorsements CP 04 05 Ordinance or Law and CP 04 40 Spoilage. CR 00 20/21 Crime forms and the BOP BP 00 03 are also tested.

How is business income calculated under CP 00 30?

Business income equals net income (net profit or loss before taxes) the insured would have earned plus continuing normal operating expenses, including payroll. The period of restoration starts 72 hours after the direct physical loss (waiting period) and ends when the property should be repaired with reasonable speed. Coinsurance applies based on a chosen percentage of 12-month income; the Agreed Value option suspends coinsurance during the policy period.

What is the difference between filed and non-filed inland marine?

Filed (controlled) inland marine classes have rates and forms regulated by state insurance departments and follow standardized ISO forms — examples include accounts receivable, valuable papers, and signs. Non-filed (uncontrolled) classes allow insurers to develop their own forms and rates without filing — examples include builders risk inland marine, contractors equipment, motor truck cargo, and bailee customer goods. The Nationwide Marine Definition determines which risks are eligible for inland marine treatment.