Ch. 6 - Commercial Package Policy (CPP) Flash Cards
What is the purpose of interline endorsements in Commercial Package Policies (CPPs)?
They eliminate redundancy and minimize the number of other policy endorsements.
What type of policy consists of the declarations, conditions, endorsements, and other attachments applicable to a single line of insurance?
Monoline
What coverage does the extra expense coverage form provide?
It reimburses the insured for extra expenses the insured incurs to keep a business operational after a loss.
What is covered under the Legal Liability Coverage Form?
Property in the insured’s care, custody or control
What type of property can be covered under Inland Marine insurance?
Any type of property that is portable on land, as well as means of transportation and communication.
In Commercial Package Policies (CPPs), who may cancel the policy in writing and make changes to the policy with the consent of the insurer?
First-named insured
What is a commercial floater?
An Inland Marine policy designed to cover movable commercial property, wherever it may be located.
What type of property would be covered under the Builder’s Risk Coverage Form?
The building, temporary structures, foundations, fixtures, equipment, and materials and supplies within 100 feet of the premises.
What is the name for policy endorsements that may apply to more than one coverage part?
Interline endorsements
How are supplementary payments paid in liability insurance policies?
In addition to the limits of liability
What components make up a Commercial Policy?
Policy cover, policy declarations, interlines endorsements, lines of insurance declaration pages, lines of insurance coverage forms, common policy conditions, lines of insurance conditions, causes of loss forms, and endorsements
What would be considered a single accident in Equipment Breakdown coverage?
All accidents at a single location, at the same time, by the same cause.
Commercial property coverage can be written with one of three causes of loss forms. What are they?
Basic, Broad, and Special
In Commercial Inland Marine policies, who transports the property of anyone who hires them?
Common carriers
What are the coverage parts that may be included in a Commercial Package Policy (CPP)?
Commercial property, general liability, crime, equipment breakdown, auto, inland marine, and farm.
What does Coverage A of the Commercial General Liability (CGL) form provide coverage for?
Injury or death suffered by a third party, or damage to the property of others
What is the broadest coverage in the Commercial Crime Form?
Theft Coverage
What is the purpose of a claims-made form?
To pay for BI or PD damage reported during the policy period.
What types of perils are covered by the Advertising Injury Form?
Libel Slander Defamation Violation of Privacy Infringement of Copyright or Title
What is the purpose of interline endorsements in Commercial Package Policies (CPPs)?
They eliminate redundancy and minimize the number of other policy endorsements.
How are supplementary payments paid in liability insurance policies?
In addition to the limits of liability
What is the occurrence form trigger based on?
The date of injury or damage
What components make up a Commercial Policy?
Policy Cover Policy Declarations Interlines Endorsements Lines of Insurance Declaration Pages Lines of Insurance Coverage Forms Common Policy Conditions Lines of Insurance Conditions Causes of Loss Forms Endorsements
What is the date stipulated on the declaration page of a claims-made liability form as the earliest date on which an incident may occur and be covered by the policy?
Retroactive date
What are the coverage parts that may be included in a Commercial Package Policy (CPP)?
Commercial Property General Liability Crime Equipment Breakdown Auto Inland Marine Farm
What is the difference between a personal injury and an advertising injury?
PI refers to individuals; AI is incurred to a business. Both, however, are nonphysical injuries.
In CPP, who may cancel the policy in writing and make changes to the policy with the consent of the insurer?
First-named Insured
What type of policy consists of declarations, conditions, endorsements, and other attachments applicable to a single line of insurance?
Monoline
When other insurance is written on the same basis as a CPP, what is the insured obligated to cover?
A share of the loss
In a commercial crime policy, what does employee theft cover?
Losses resulting from theft by employees
What types of entities can be insured under a General Liability policy?
Sole proprietors, partnerships, and corporations.
What is the limit that the insurer will pay for all losses that occur during a policy period?
Aggregate Limit
Which coverage would a business owner need in a crime policy to cover money that may stolen from a messenger?
Outside the Premises
What is the name for policy endorsements that may apply to more than one coverage part?
Interline endorsements
What type of policy is a liability policy that covers all claims arising out of incidents occurring during the policy period, regardless of whether the policy is still in effect at the time of the claim?
An occurrence policy
What are the 3 liability coverages included in the Commercial General Liability (CGL) Coverage Form?
Coverage A - Bodily Injury and Property Damage
Coverage B - Personal Injury and Advertising Injury
Coverage C - Medical Payments
What types of expenses are covered by Coverage C - Medical Payments in Commercial General Liability policies?
Medical, surgical, hospital, or funeral expenses for third parties injured because of the insured’s business operations
What are the 2 coverage triggers in Commercial Crime policies?
Discovery Form and Loss Sustained Form
