Unit 10 Commercial Package Policy

Question 1

The ____ policy (CCP) usually begins with coverage for property and general liability insurance and then other forms of insurance are added on to create a “bundle.” A majority of commercial risks may be eligible for coverage under the CPP.

Answer 1

Commercial Package Policy (CPP)

Question 2

What kinds of coverage can the CPP not offer? (4)

Answer 2

1. Worker’s Comp
2. Life Insurance
3. Health and Disability Insurance
4. Certain types of professional liability

Question 3

Commercial coverages can be written as a monoline policy or a package which is then called a CPP. When the coverage is not monoline, meaning multiple coverages exist, the coverage changes from a policy to a ____. (it does not make sense to call coverage a policy when it exists in a policy)

Answer 3

Form

Question 4

CCP: The CCP contains declarations, definitions, insuring agreements, and exclusions. The CCP also contains: (3)

Answer 4

1. Common policy declarations
2. Common policy conditions
3. Two or more coverage parts (property or casualty)

Question 5

A CCP might also contain ____ endorsements - endorsements that may be used with more than one line of insurance.

Answer 5

Interline

Question 6

Who can make changes to a CPP and who is responsible for paying the premiums?

Answer 6

First-Named Insured (they’re also the only person who can cancel and who receives a refund from cancelling a CPP)

Question 7

The ____ condition states that the company may examine and audit the insured’s books and records at any time during the policy period and for up to ____ years after the end of the policy period.

Answer 7

Examination of You Books and Records, 3 Years

Question 8

The ____ condition gives the company the right to make inspections or surveys of the insured business at any time. the company may choose to report on the conditions it finds and recommend changes. These inspections are related to insurability and are not considered safety inspections.

Answer 8

Inspections and Surveys

Question 9

The ____ condition states that the insured’s rights and duties under the policy cannot be transferred without the written consent of the insurance company, except in the case of the death of a named insured. This is sometimes called the ____ clause, and it is a common feature of both personal and commercial line policies.

Answer 9

Transfer of Your Rights and Duties Under this Policy, Assignment