Ch. 6 - Commercial Package Policy (CPP) Flash Cards

Question 1

What is the purpose of interline endorsements in Commercial Package Policies (CPPs)?

Answer 1

They eliminate redundancy and minimize the number of other policy endorsements.

Question 2

What type of policy consists of the declarations, conditions, endorsements, and other attachments applicable to a single line of insurance?

Answer 2

Monoline

Question 3

What coverage does the extra expense coverage form provide?

Answer 3

It reimburses the insured for extra expenses the insured incurs to keep a business operational after a loss.

Question 4

What is covered under the Legal Liability Coverage Form?

Answer 4

Property in the insured’s care, custody or control

Question 5

What type of property can be covered under Inland Marine insurance?

Answer 5

Any type of property that is portable on land, as well as means of transportation and communication.

Question 6

In Commercial Package Policies (CPPs), who may cancel the policy in writing and make changes to the policy with the consent of the insurer?

Answer 6

First-named insured

Question 7

What is a commercial floater?

Answer 7

An Inland Marine policy designed to cover movable commercial property, wherever it may be located.

Question 8

What type of property would be covered under the Builder’s Risk Coverage Form?

Answer 8

The building, temporary structures, foundations, fixtures, equipment, and materials and supplies within 100 feet of the premises.

Question 9

What is the name for policy endorsements that may apply to more than one coverage part?

Answer 9

Interline endorsements

Question 10

How are supplementary payments paid in liability insurance policies?

Answer 10

In addition to the limits of liability

Question 11

What components make up a Commercial Policy?

Answer 11

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

Question 12

What would be considered a single accident in Equipment Breakdown coverage?

Answer 12

All accidents at a single location, at the same time, by the same cause.

Question 13

Commercial property coverage can be written with one of three causes of loss forms. What are they?

Answer 13

Basic, Broad, and Special

Question 14

In Commercial Inland Marine policies, who transports the property of anyone who hires them?

Answer 14

Common carriers

Question 15

What are the coverage parts that may be included in a Commercial Package Policy (CPP)?

Answer 15

Commercial property, general liability, crime, equipment breakdown, auto, inland marine, and farm.

Question 16

What does Coverage A of the Commercial General Liability (CGL) form provide coverage for?

Answer 16

Injury or death suffered by a third party, or damage to the property of others

Question 17

What is the broadest coverage in the Commercial Crime Form?

Answer 17

Theft Coverage

Question 18

What is the purpose of a claims-made form?

Answer 18

To pay for BI or PD damage reported during the policy period.

Question 19

What types of perils are covered by the Advertising Injury Form?

Answer 19

Libel
Slander
Defamation
Violation of Privacy
Infringement of Copyright or Title

Question 20

What is the purpose of interline endorsements in Commercial Package Policies (CPPs)?

Answer 20

They eliminate redundancy and minimize the number of other policy endorsements.

Question 21

How are supplementary payments paid in liability insurance policies?

Answer 21

In addition to the limits of liability

Question 22

What is the occurrence form trigger based on?

Answer 22

The date of injury or damage

Question 23

What components make up a Commercial Policy?

Answer 23

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

Question 24

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?

Answer 24

Retroactive date

Question 25

What are the coverage parts that may be included in a Commercial Package Policy (CPP)?

Answer 25

Commercial Property
General Liability
Crime
Equipment Breakdown
Auto
Inland Marine
Farm

Question 26

What is the difference between a personal injury and an advertising injury?

Answer 26

PI refers to individuals; AI is incurred to a business. Both, however, are nonphysical injuries.

Question 27

In CPP, who may cancel the policy in writing and make changes to the policy with the consent of the insurer?

Answer 27

First-named Insured

Question 28

What type of policy consists of declarations, conditions, endorsements, and other attachments applicable to a single line of insurance?

Answer 28

Monoline

Question 29

When other insurance is written on the same basis as a CPP, what is the insured obligated to cover?

Answer 29

A share of the loss

Question 30

In a commercial crime policy, what does employee theft cover?

Answer 30

Losses resulting from theft by employees

Question 31

What types of entities can be insured under a General Liability policy?

Answer 31

Sole proprietors, partnerships, and corporations.

Question 32

What is the limit that the insurer will pay for all losses that occur during a policy period?

Answer 32

Aggregate Limit

Question 33

Which coverage would a business owner need in a crime policy to cover money that may stolen from a messenger?

Answer 33

Outside the Premises

Question 34

What is the name for policy endorsements that may apply to more than one coverage part?

Answer 34

Interline endorsements

Question 35

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?

Answer 35

An occurrence policy

Question 36

What are the 3 liability coverages included in the Commercial General Liability (CGL) Coverage Form?

Answer 36

Coverage A - Bodily Injury and Property Damage
Coverage B - Personal Injury and Advertising Injury
Coverage C - Medical Payments

Question 37

What types of expenses are covered by Coverage C - Medical Payments in Commercial General Liability policies?

Answer 37

Medical, surgical, hospital, or funeral expenses for third parties injured because of the insured’s business operations

Question 38

What are the 2 coverage triggers in Commercial Crime policies?

Answer 38

Discovery Form and Loss Sustained Form