A commercial insured wants the broadest causes-of-loss form available so coverage applies to any direct physical loss that is not specifically excluded. Which causes-of-loss form should the producer recommend?
a.Basic Form
b.Broad Form
c.Special Form
d.Named Perils Form
Explanation
The Special Form is the broadest of the three standard causes-of-loss forms. It uses an open-perils (also called all-risk) approach: coverage applies to any direct physical loss unless the form specifically excludes the peril. Basic and Broad are named-perils forms and only cover the perils listed.
Law Reference: ISO Causes of Loss — Special Form (open perils)This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- A commercial property policy is built from several standardized components. Which of the following is the MINIMUM combination of forms required to create a complete commercial property coverage part?
- Which of the following perils is covered under the Basic causes-of-loss form but is NOT one that an insured can rely on the Broad form to add?
- Under the Building and Personal Property Coverage Form (CP 00 10), which of the following is NOT included automatically in the definition of Building coverage when the insured shows a value for the building?
- A dry cleaner has customer garments on the premises waiting to be picked up. Which coverage category under CP 00 10 most accurately responds to direct physical damage to these garments?
- A commercial building with a replacement value of $1,000,000 carries an 80% coinsurance clause. The insured purchased only $600,000 of coverage. A covered fire causes a $200,000 loss. Ignoring the deductible, how much will the insurer pay?
- An insured selects the Agreed Value optional coverage on a commercial property policy. What is the primary effect of this option?
Last reviewed: · editorial process
PrepPass team · Verified against California Property & Casualty Insurance License Exam · How we review