Commercial Package Policy - Commercial Building & Personal Property Coverage Flashcards
The commercial building and personal property coverage form provides for several extensions of coverage, but only if:
A. An additional premium is paid
B. The policy is written on a blanket basis
C. The coverage is written on a replacement cost basis
D. An 80% or more coinsurance percentage is shown in the declarations
Answer: D.
On commercial property insurance the insured may select a coinsurance requirement ranging from as low as 50% to as high as 100%
The basis for all commercial property insurance sold in this state is the:
A. Commercial package policy
B. Standard fire policy
C. Commercial building and personal property form
D. Commercial property basic form
Answer: B. Standard fire policy
A commercial property condition that automatically provides broader coverage when the insurer makes revisions to a current policy edition without charging an additional premium is the: A. Liberalization clause B. Additional coverage clause C. Other insurance clause D. Assignment clause
Answer: A. Liberalization clause
Changes to a CPP must be made by adding a(n): A. Rider B. Endorsement C. Supplement D. Provision
Answer: B. Endorsement
Vacancy on a commercial property policy is defined as more than \_\_\_ consecutive days: A. 45 B. 30 C. 60 D. 90
Answer: C. 60 days
On a commercial property policy, the exclusion relating to no coverage after 60 consecutive days of vacancy applies to: A. Vandalism B. Wind C. Fire D. Hail
Answer: A. Vandalism
Valuable papers insurance covers all of the following EXCEPT: A. Manuscripts B. Maps C. Money and securities D. Books
Answer: C. Money and securities
For nonpayment, insurers canceling commercial policies must give \_\_\_ days advance notice: A. 45 B. 60 C. 30 D. 10
Answer: D. 10 days
On a CPP, inter line endorsements do all of the following EXCEPT:
A. Minimize the number of endorsements needed on the policy
B. Only apply to commercial liability coverage
C. Could apply to more than 1 coverage part
D. Eliminate duplicate language
Answer: B.
All of the following are cause of loss forms that may be added to a Commercial Building and Personal Property Coverage Form EXCEPT: A. Broad B. Comprehensive C. Special D. Basic
Answer: B. Comprehensive
A commercial property insurance that has a single limit of insurance for all property coverage at 3 different locations is known as: A. Stated coverage B. Valued coverage C. Specific coverage D. Blanket coverage
Answer: D. Blanket coverage
Which coverage or coverages are mandatory under the commercial package policy? A. Commercial liability and auto B. Any 2 lines of insurance C. Commercial property and liability D. Commercial property and crime
Answer: C.
Insured often add the optional commercial glass coverage form to their CPP for all of the following reasons EXCEPT:
A. The basic cause of loss form does not cover glass windows
B. The special cause of loss form contains the same limits as broad form
C. This optional endorsement is provided at no extra premium charge
D. The broad cause of loss form limits glass coverage to $100 per pand and $500 per occurrence
Answer: C.
When a policy is written for the named insured, the rates for a dwelling under construction are based upon:
A. Completed value
B. Average value
C. The value reported to the insurer each month
D. Depreciated value
Answer: B. Average value
All of the following are common conditions in a CPP EXCEPT:
A. Insurers must give 10 days’ advance notice when canceling for nonpayment of premium
B. Only the first named insured may cancel the policy
C. The insurer may inspect the insured’s books and records up to 3 years after expiration
D. Buildings are considered vacant unless 31% or more of the rental units or floor area are occupied
Answer: B:
