Ch 7 Commercial Package

Question 0

What are the common conditions on a CPP?

Answer 0

1) cancellation - if insurer cancels for nonpay, 10 days notice and for any other reason 30 days.
2) policy changes - only the insured can change
3) examination of books and records - up to 3 years after policy period
4) inspections surveys
5) premiums -
1st ni is responsible
6) xfer of rights/duties - cannot assign to another without insurers approval

Question 1

Why does the common declarations page not contain a deductible?

Answer 1

The deductible shows on the individual forms.

Question 2

What are the 1st named insured’s responsibilities?

Answer 2

1) pay premium
2) receive return premium
3) make policy changes
4) report losses
5) cancel policy
6) receive cancellation notice

Question 3

What was ISO’s purpose in creating the CPP?

Answer 3

Standardize commercial policies