Commercial Package Policy Flashcards
Does the CPP cover ocean marine?
No it covers everything except for ocean marine, aviation, and work comp
What are the fifteen items workers CPP can include?
Commercial property coverage commercial general liablility coverage commercial auto coverage commercial crime coverage commercial inland marine coverage commercial inland marine coverage professional liability coverage employment proactices liability coverage farm coverage liquor liability coverage pollution liability coverage capital assest program
What are three coverage not eligible under the CPP?
businessowners policy
risk eligible for the homeowners program
coverages excluded by state regulation
What does CPP consist of ?
Common policy declarations
common policy conditions
two or more coverage parts
What two forms are always included in the CPP?
common policy declarations
common policy conditions
What part of the CPP varies based on the lines of coverage included?
The coverage
In a CPP what is in the common policy declarations?
Insures info , policy period , a description of the covered business , the coverage parts purchased and their premiums , A list of forms applicable to all coverage parts
Under a standard CPP contract how many days notice of cancellation is required when the policy is cancelled for nonpayment of premium?
10 Days
Under a standard CPP contract how many days notice of cancellation is required when the policy is cancelled foranother reason permitted by the policy?
30 dyas
What is the examination of books and records in CPP?
The insurer can check the insureds book anytime during the policy
what is the change condtion?
Only the first named insured is authorized to make chages inthe terms of the policy with the consent of the insured by the insuer that is made a part of the policy
What is the inspections and surveys condition?
this gives the company the right to make inspections
What is the premium condition?
The first named insured is responsible for the payment of all premiums and will receive any return premiums
What is the transfer of your rights and duties condition?
The insureds rights and duties under the policy cannot be trasferred without the written consent of the insurance company except in the case of death
What are the three seperate cause of loss forms in a CPP?
basic, broad, special
What is the control of property condition?
The act of neglect of person beyond the insureds direction or control will not affect the insurance
What is the legal action against us condition?
Basically gives the insured the ablitity to not collect from the insurance company for at least two years as the long as the insured follow all the necessary conditions.
what is the other insurance conditon in a CPP property policy?
If there is other insurance written on the same basis then coverage is covered pro rata. But if a different plan covers it then this policy is consider excess insurance
In a CPP property policy what does the transfer of rightrs of recovery against others to us condition mean?
Basically gives the insurer subrogation rights
What is the concealment or fraud condition?
The policy is not valid if the insured is purposely dishonest to the insurer
What is the no benefit to bailee condition?
This prohibits the Bailee from being reimbursed by the insureds
What is the Liberalization condition?
Any revisions that broadens coverage without requiring additional premium will automaticallly apply to the coverage part if the revision is adopted by the insurer during th epolicy period or with 45 days of the policies effective date.
Is business personal property covered while it is in the building as long it is 150 ft from the premise?
No it is it not. It can be no more than a hundred feet from the building.
In the CPP property policy what does Debris removal cover?
Pays the expense of debris removal for about 25% of the amount paid for direct loss to cover property.
How much does fire department service charge as an additional coverage for a CPP?
$1000 (No deductible applies)
What is the additional coverage for a CPP does preservation of property pay?
It is for when property is removed from a location to protect it from possible perils and risk
In additional coverages for CPP what does pollutant cleanup and removal cover?
the cost to take pollutants out of water this is limited to $10,000 per policy period
What is the increased cost of construction additional coverage for a CPP?
This covers the cost to keep buildings up to date with code when a building has been damaged.
What is the extension newly acquired or constructed property under CPP?
This is coverage under A and B with $250,000 for buildings that are new and have been recently added to the policy. they are covered for up to 30 days
In a CPP what covers the loss of personal effects of the named insured partners and employees?
The extension personal effects and property of others which provides 2,500 of coverage
How much will the CPP extension valuable papers and records-other than electronic data pay?
Up to 2500
In extented coverage for the CPP how much is covered for the property off premises?
10,000 dollars
In the CPP policy when is property off premise coverage provided?
When the property is: at a location the insured does not own lease or operate, in storage at a location the insured leases, or at a fair trade show or exhibition
In the CPP what does the the outdoor property extension do?
This protects things that are outside likesatellite dishes, signs, plants, trees, and shrubs
Under the CPP outdoor extension is a 300 dollar tree covered?
No because there is a limit of only $250 a tree and a max payable of $1000
What is contractual Liability/
This when one party agrees under a contract to assume the liability of another party.
In a CPP what does the following statement describe?
“Coverage for events that have happened after the retroactive date but which were not discovered by the insured and reported to the insurer within 60 days of policy expiration?”
The extended reporting period.
In a CPP the medical payments coverage are for what party?
The third party.
In a CPP under Coverage C (medical payments) covers reasonable medical expense inccured within how many years of the accident?
1 year mothafucka
If something falls at the entrance to a business (like a sign) what would that loss be covered under in a CPP?
Premises operations
In a CPP what does a claims made policy cover?
Things reported during the policy period provided that the policy occurred after the retroactive date (if any) stated in the policy?
Under a CGL form what is an insured contract?
An insured contract specifically excludes certian parts of contracts that might otherwise be insured. Like architects, engineers, or surveyors for any injury.
What does commercial general liability cover?
Premises and operations exposure and products and completed operations exposure
In commercial general Liability coverage are premiums for court bonds
cost of investigation and defense
and cost of judgment interest
standard coverage or supplementary payments?
Supplementary payments
Under the commercial liability coverage provide for lost earnings or wages?
250 a day
Why would someone purchase an owners and contractors protectice liability policy?
It would be for a commercial policy when a commercial building hires out a contractor
If someone moves their business to a new location under the Commerical General Liability policy do they still have coverage if they have moved from the original location?
Yes they have coverage until the end of the policy period
What is the retroactive date of a claims made professional liability policy?
The earliest date an even or loss may occur and be eligible for coverage under the policy
what does escrow mean?
a bond, deed, or other document kept in the custody of a third party, taking effect only when a specified condition has been fulfilled.
What is is the liquor liability exclusion?
This excludes liability arising out of the sales or service of alcoholic beverages. With the exception of a casual host who services alcoholic drinks.
If a contractor builds something like a sink in the families house and a week later the sink falls on the owners foot. This would be what kind of loss you fucking genius?
Completed operations
The basic extended reporting period included in the commercial general liability for covers claims made up to how many years after the end of the policy period?
5 years you bastard
an occurrence must be reported how soon after the policy period to be covered under the reporting policy period?
60 days
What does section A of the CGL policy cover?
Bodily injury, and property damage arising from the premises, operations, products, and completed operations
In a Commercial crime policy what does the extortion-commercial entities cover?
Pays payments made in response to threats of bodily harm to employees of the insured who are captured in covered territories. Such as the USA, its territories and possessions, and endorsed territories
If business is being restored what would give it coverage for loss of use exposure.
Business income
Broad form livestock coverage insurers against what type of loss?
Electrocution, Accidental shooting, and drowning.
If someone has a store in a mall and there is a fire in their home that damages the home and merchandise for the store how much is covered under a CPP?
Everything will be covered relating to the business. The only thing no covered is damage to the home
In a CPP what covers a company during its peak season when inventory is tripled?
Peak season endorsement.
When a burglar takes the safe at a furniture the owner of the store would be covered under what?
A commercial crime policy
If a business income policy has a max indemnity limit of 25,000. And the owner has an income loss of 30,000 in the first month and 20,000 in the second month how much can he collect as a whole after the two months. And how can he collect the first month?
50,000 after everything is all said and done. However he can only collect 25,000 during the first month not thirty. The 5,000 he didn’t collect the first month will be carried over into the second month.
What is the definition of theft?
Any act of stealing and includes robbery, burglary, and larceny.
What is the definition of burglary?
the forcible entry into or exit from premises with the intent to carry off property belonging to the insured. Visible signs of forced enter must be present
What is the definition of Robbery?
The forcible removal of an insureds property by use or threat of violence or injury
What is an exception on commercial property broad form?
Earth movment
What is the definition of a Bailee?
Someone who has possession of property belonging to another person.
If policy limits of a building and personal property have been exhausted how much additional coverage is available for debris removal?
10,000
What does the cause of loss form do?
Covers risk of direct physical loss, subject to the exclusions and limitations expressed in the form.
In the CPP what does business income coverage include?
Net income that would have been earned or incurred and continuing normal operations expenses.
For the extensions in the building and personal property coverage to be activated what must condition must be met?
A coinsurance limit must of 80% or higher is required.
For how many does does the boiler and machinery policy provide automatic coverage for newly acquired property?
90 days mother fucker
What does extra expense coverage provide?
This coverage takes care of a business during an interruption allowing them to keep things moving and not completely shut everything down.
`What is coverage E in the commercial crime policy?
Premises Burglary
If a building is vacant for more than 60 days what is covered?
Rusting equipment because of excessive dampness
What is the difference between coverage E and F in the farm owners policy?
Insurance is scheduled under E and a Blanket under F
If a contractors tools are stole after being left behind on a highway construction job what kind of policy would cover the tools?
Inland Marine Policy
What does the Funds Transfer Fraud coverage provide?
Cover for losses that are the result of the insured receiving fraudulent instructions to transfer money to someone else
The nation wide marine definiton provides insuracen underwriters with what?
A strict definition for classifying marine inland marine or trasportation insurance
The nation wide marine definiton provides insuracen underwriters with what?
A strict definition for classifying marine inland marine or trasportation insurance
In the CPP business and personal property form extensions are avaliable if and only if the insured has done what?
Only if the insured indicates 80% or higher coinsurance applies
In the CPP business and personal property form extensions are avaliable if and only if the insured has done what?
Only if the insured indicates 80% or higher coinsurance applies
Is The theft of retail merchandise covered under a crime policy?
Nope so suck it
Is The theft of retail merchandise covered under a crime policy?
Nope so suck it
Is food spoilage covered under a business owners special property form policy?
Nope food spoilage is only covered as an endorsment.
Is food spoilage covered under a business owners special property form policy?
Nope food spoilage is only covered as an endorsment.
What does the guest property endorsment provide?
Coverage for the guest property in the amount mentioned in the declarations page.
What does the guest property endorsment provide?
Coverage for the guest property in the amount mentioned in the declarations page.
Under the boiler and machinery policy is injury to employees covered?
Yes
What does the premises burglary coverage Form E cover?
losses arising from the actual or attempted robbery of a watch person and actual or attempted burglary.
If someone would be shipping something from LA to Chicago in their business what kind of insurance would they purchase?
Transit insurance
The building and personal property coverage form can be used to insure what?
Property belonging to others
plants and shrubs held for sale
and outdoor fixtures
What is a messenger?
The named insured or partner or employee of the name insured that has the money outside the insureds premise
What is a messenger?
The named insured or partner or employee of the name insured that has the money outside the insureds premise
The condominium commercial unit owners form is what what?
To cover the individual needs of commercial condominium unit owners. Not to be confused with HO 6
A commercial crime policy covers loss to money and securities outside the isnureds premises while money or securities are in the care and custody of a what?
Messenger
What policy would cover a businesses light poles and sign poles?
These items are considered fixtures so they are covered under the commercial personal property form
Under the boiler and machinery policy is injury to employees covered?
Yes
If a farmer who has a broad form farm policy and has a cow that dies form disease how much compensation does he get?
Nothing
If someone would be shipping something from LA to Chicago in their business what kind of insurance would they purchase?
Transit insurance
If the insured losses money caused by an employees deceit what would be the best coverage for him?
Employee theft
If the insured losses money caused by an employees deceit what would be the best coverage for him?
Employee theft
Are patios and walk ways covered under the building and personal property form?
Nope
Are patios and walk ways covered under the building and personal property form?
Nope
Under the condominium association coverage what are some of the things that are covered.
Owners business personal property
alterations that are part of the building
appliances
Under the condominium association coverage what are some of the things that are covered.
Owners business personal property
alterations that are part of the building
appliances
What is a interline endorsement?
Commercial endorsment that applies to more than on coverage as part of the package poliyc
What is coverage G?
Farm buildings and structures