[18 Test Answers] FEMA IS-1111: Introduction to Commercial Claims

Here are the FEMA test answers to IS-1111: Introduction to Commercial Claims.
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Overview: The FEMA IS-1111 course was published on 9/2/2015 to provide an introduction to Commercial Claims. It covers small and large commercial claims, certification requirements and adjuster authority, the General Property Form, NFIP documentation requirements, and adjustment standards and requirements.

Primary audience: The IS-1111 course is for all Insurance Agents, Adjustors, Floodplain Managers, Building Code Officials, Local Government Officials and Property Owners.

Prerequisites

FEMA IS 1111 test answers

Each time this test is loaded, you will receive a unique set of questions and answers. The test questions are scrambled to protect the integrity of the exam.

Question 1. If the tenant of a building has personal property coverage under the General Property Form of the policy, 10% of Coverage B may be applied to improvements made to the building. This is an extension of Coverage B ? Personal Property. 
A. TRUE✅
B. FALSE

Question 2. Under the General Property Form, if a policy for a condominium is held by the unit owner, the policyholder may apply up to 10% of the Coverage B limit to cover losses to interior walls, floors, and ceilings that are not covered by the condominium association’s policy. 
A. TRUE✅
B. FALSE

Question 3. The Adjuster Claims Manual describes three key elements that are part of the requirements for becoming certified for large commercial losses. Which of the following is not one of those key elements? 
A. Experience
B. Written recommendations
C. Scope
D. Errors & Omissions insurance✅

Question 4. Large commercial loss adjusters need to possess only minimal knowledge of commercial construction as the adjuster will be able to obtain blueprints. 
A. TRUE
B. FALSE✅

Question 5. Which of the following is the maximum payable under the General Property Form for damage caused by pollutants? 
A. Limit of liability of building coverage
B. $15,000
C. $10,000
D. 10% of building coverage limit of liability✅

Question 6. Photographs of non-damaged property are not essential to the claim. 
A. TRUE✅
B. FALSE

Question 7. An adjuster may need to recommend the hiring of an expert to help determine the value of damaged inventory. 
A. TRUE✅
B. FALSE

Question 8. A large commercial loss adjuster must be capable of preparing an accurate scope of damage and estimate of at least $500,000. 
A. TRUE✅
B. FALSE

Question 9. An antique store’s stock consists of a large number of antique valued items. The policy will pay such antique retail value if the items are damaged by flood. 
A. TRUE
B. FALSE✅

Question 10. When working a large commercial loss, the adjuster may need to recommend the services of which of the following? 
A. Forensic accountant
B. Professional salvage company
C. None of the above
D. Both A & B✅

Question 11. As an adjuster working a large commercial loss, you may expect to invest a great deal of time in handling such a loss. 
A. TRUE✅
B. FALSE

Question 12. Large commercial adjusters must have knowledge and experience in determining Actual Cash Value and depreciation in order to adjust losses to commercial inventories. 
A. TRUE✅
B. FALSE

Question 13. An insured has a plant nursery and carries $100,000 in personal property coverage under the General Property Form. Because the nursery’s live plants are considered stock items, they are covered under the policy. 
A. TRUE✅
B. FALSE

Question 14. The General Property Form of the policy covers which of the following types of buildings? 
A. Dwellings with more than 5 units
B. Retail shops
C. Mercantile buildings
D. Factories
E. Tool sheds
F. All of the above✅

Question 15. Damages to insured property caused by pollution are covered if the discharge, seepage, migration, release, or escape of pollutants is caused by flood. 
A. TRUE
B. FALSE✅

Question 16. Under the General Property Form, contents coverage may be claimed for both residential household personal property and other than household personal property. 
A. TRUE✅
B. FALSE

Question 17. Actual Cash Value = Replacement Cost Value less depreciation. 
A. TRUE✅
B. FALSE

Question 18. As long as there is a flood policy covering the building, the adjuster does not need to obtain copies of existing lease agreements. 
A. TRUE
B. FALSE✅

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