Commercial Lines Flashcards
CPP policies are considered to be modular polices also known as…
Commercial Lines Program
Commercial Package Policy (CPP) must contain…
Common Declaration
Common Conditions
At least 2 Cov. Parts/Modules (any 2 parts)
The terms “you” and “your” in Commercial policies refers to…
The named insured
Major advantages of a commercial lines package program over purchasing the coverage on a monoline basis…
Fewer policies
The 6 Common Conditions for a commercial package policy are:
Cancellation Changes Examination of Books & Records Inspection & Surveys Premium Transfer of Rights & Duties
Fewer policies to buy and maintain is one major advantage of purchasing a modular…
Package Policy/Commercial lines policy
All commercial package policies must include a…
Declaration, Conditions, and 2 Cov. Parts of Commercial
The insurer has the right to audit or examine insured’s books XXX during the policy period and up to XXX years after expiration.
Anytime; 3 years
What type of policy is known as a modular policy?
CPP or Commercial lines program
What two coverage parts must be included in order for the CPP to be discounted?
Property and Liability
The purpose of the inspection and surveys condition is to determine insurability and…
Rating (premiums to be charged)
The Building Person Property (BPP) form consist of 3 categories:
Cov. A covers the buildings
Cov. B covers the business personal property
Cov. C covers property of others
Improvements and betterments under BPP are insured under what coverage category…
Coverage B - Business personal property
Define Builders Risk
Form used to cover buildings under construction
excludes peril of theft and cannot be declared vacant
Under a building and personal property Cov. Form a building has been vacant for more than 60 consecutive days what effect will this have on a fire?
Suspend of 5 perils & other perils by 15%
Forms that cover windstorm?
Basic, Broad and Special
Forms that cover glass coverage.
Broad & Special
A tenant in a leased building who makes improvements that are not legally removable should purchase coverage for…
Betterments and improvement to insure their investment in these improvements (Coverage B).
Form used to insure buildings under construction describes…
Builders Risk
If a building is vacant for 75n days what perils if any would be suspended?
Glass, water, theft, sprinkler & vandalism
Which commercial property form contains most the exclusions that apply to a commercial property policy?
Cause of loss (form of perils)
What indirect coverage form is used to prevent suspension of the business after an insured direct loss?
Extra expense
Commercial General Liability (CGL) consists of two coverage forms…
Occurrence (the policy that was in force when the occurrence happened) and Claims-made (what triggers coverage is when was the claim filed)
What is the difference between occurrence and claims-made for CGLs?
The coverage trigger (what activates coverage)
(Blank) is the earliest date that an occurrence can occur and still be covered under the current policy.
Retroactive date
(Blank) provides the insured up to 60 days after the policy expires to report an incident that happened before the policy expires.
Basic Extended Reporting Period (BERP)
A claims made CGL can be endorsed with a…
Supplemental Extended Reporting Period (SERP) - extend the reporting period indefinitely
CGL extends coverage to the following loss exposures…
Premises & operations Product Completed operations Contractual Contingent
*Excludes pollution liability
CGL has 2 aggregate limits…
General
Product & completed operations
CGL Section 1 pertains to…
Cov. A - Bodily injury & property damage
Cov. B - Personal & Advertising injury
Cov. C - Medical Payments
An aggregate is the maximum amount the policy will pay…
Per year
Inland Marine policies normally provide which type of peril coverage?
Open peril
Which inland marine form is used to cover maps, deeds and abstracts?
Valuable papers
What form is used by the centers/hubs that ship and receive goods of others on a regular basis.
Annual transit
Annual transit is a non-filed marine form that can be written…
In Named peril
What form is used to insure a single shipment?
Trip Transit
What are the 3 Commercial Auto forms?
Truckers, Business & Garage
Vehicles insured are identified by Symbols. What are they?
Symbol #1 - Any Auto Symbol #4 - Owned Auto Symbol #7 - Specifically described Symbol #8 - Vehicles rented Symbol #9 - When employers drive conducting company business
Which part of the Garage policy covers physical damage to customers car?
Garage Keepers
Which part of the Garage Policy covers work done on the customers car?
Garage liability
What endorsement would be needed so that a Business Auto policy would cover a car rented while on vacation?
Extended non-owner
Crime coverages are needed since commercial property policies do not provide coverage for…
Money or employee theft
Other than money & securities means what in Crime coverages?
Tangible business property
Which form would cover losses that occurred during policy period and 1 year later?
Loss Sustain Form
Which form would cover losses that are discovered during policy period but happened prior?
Discover Form
What is it called when losses can be found up to 1 year after the policy expires?
Discovery period
