Commercial Package Policy & Commercial Property Coverage

Question 1

The Commercial Package policy (CPP) allows commercial insureds to customize their own insurance policy by adding coverage parts, depending on the needs of the insured business. All CPPs are subject to the _______ .

Answer 1

Common Policy Declarations and the Common Policy Conditions

Question 2

The Common Policy Conditions include cancellation provisions, guidelines on how changes to the policy may be made, the insurer’s right to examine the insured’s books and records, the insurer’s right (but not obligation) to conduct _______ , premium conditions, and assignment conditions.

Answer 2

inspections and surveys

Question 3

All commercial property policies must include at least one _______ that lists the covered perils, limitations, Additional Coverages, and exclusions.

Answer 3

Cause of Loss Form

Question 4

What are the Perils Insured Againt by the Cause of Loss- Basic Form?

Answer 4

Sinkhole Collapse, Aircrafts or vehicles, volcanic action, sprinkler leakage, explosion

Question 5

What are the EXCLUDED Perils by the Cause of Loss- Basic Form?

Answer 5

Earth Movement, Explosion of Steam Broilers, Gov. Action, Water, and Off Premises utility services

Question 6

The Cause of Loss- Broad Form covers what perils in addition to the Basic form?

Answer 6

Falling objects, certain water damage, and weight of ice, snow, or sleet

Question 7

The _______ covers property on an open perils basis.

Answer 7

Causes of Loss – Special Form

Question 8

Coverage is not provided for water leaking from a _______ or drain.

Answer 8

sump pump

Question 9

The _______ is the primary commercial property coverage form, with coverage applying to buildings, business personal property, and the personal property of others. The insured may choose which of these coverages applies to their policy.

Answer 9

Building and Personal Property Coverage Form

Question 10

includes the described building, completed additions, outdoor fixtures, permanently installed machinery, and personal property used to service the insured buildings.

Answer 10

Building Coverage

Question 11

This coverage includes furniture and fixtures, stock, and tenants’ improvements or betterments.

Answer 11

Business Personal Property

Question 12

Building and Personal Property Coverage Form requires that Personal property must be in or on the described building, or _______ of the premises, including in the open or in a vehicle.

Answer 12

100 ft

Question 13

Property not covered by _________________________________Coverage Form includes accounts, money, animals, autos held for sale, paved structures, underground pipes, growing crops, and outside fences and antennas.

Answer 13

Building and Personal Property Coverage Form

Question 14

The form provides 6 Additional Coverages covering debris removal, preservation of property, fire department service charges, pollutant clean-up and removal, increased cost of construction, and electronic data.

Answer 14

Building and Personal Property Coverage Form

Question 15

On the Building and Personal Property Coverage form there are also 6 Coverage Extensions for _______, personal effects and property of others, valuable papers and records, property off premises, outdoor property, and non-owned detached trailers.

Answer 15

newly acquired or constructed property

Question 16

The Non-owned Detached Trailers Coverage Extension provides _______ of insurance.

Answer 16

$5,000

Question 17

Under the Loss Payment condition, loss payments are made within _______ after receiving the proof of loss (or reaching a settlement).

Answer 17

30days

Question 18

Loss payments are made based on the _______ of the property, unless an Optional Coverage for agreed value or replacement cost is selected. (Building and Personal Property Coverage Form)

Answer 18

Actual Cash Value

Question 19

If the insured owns the building, it is vacant unless at least _______ of the square footage is used to conduct customary operations. (Building and Personal Property Coverage Form)

Answer 19

31%

Question 20

The Building and Personal Property Coverage Form’s coverages are subject to a deductible and a(n) _______ coinsurance requirement.

Answer 20

80%

Question 21

The _______ is another property form that covers buildings and structures under construction.

Answer 21

Builders Risk Coverage Form

Question 22

Builders Risk Coverage Form includes _______, fixtures, machinery, building materials, construction supplies, and temporary structures.

Answer 22

foundations

Question 23

On the building risk coverage form Coverage can be extended to the building materials and supplies of others if that property is intended to _______ of the building.

Answer 23

become a permanent part

Question 24

The Builders Risk Coverage Form is usually written on a _______, which requires the insured to maintain insurance to 100% of the building’s completed replacement value.

Answer 24

Completed Value Form

Question 25

The _______ could be added onto The Builders Risk Coverage Form, which would allow the insured to report monthly values and gradually increase coverage as construction continued.

Answer 25

Reporting Form Endorsement

Question 26

A similar endorsement, the _______, is available to other property policies for businesses with fluctuating business personal property values.

Answer 26

Value Reporting Form

Question 27

The _______ is used to insure property in the name of a condominium association.

Answer 27

Condominium Association Coverage Form

Question 28

Condominium Association Coverage Form it covers the building and fixtures, as required by the _______.

Answer 28

Association Agreement

Question 29

Business personal property coverage applies to personal property _______ to all unit-owners.(Condominium Association Coverage Form)

Answer 29

collectively owned

Question 30

The _______ insures business personal property for those who are tenants of commercial spaces.

Answer 30

Condominium Commercial Unit-Owners Coverage Form

Question 31

These tenants also frequently get the _______, which covers the insured’s liability for loss or damage to real or personal property owned by others while in their care.

Answer 31

Legal Liability Coverage Form

Question 32

Coverage forms are also available to cover _______ for loss of business income and extra expense.

Answer 32

indirect losses

Question 33

_______ is the net profit (before income taxes) that would have been earned, plus ongoing operating expenses, including payroll.

Answer 33

Business Income

Question 34

Coverage applies during the period of restoration, which begins _______ after the direct physical loss. (Business Income)

Answer 34

72 hours

Question 35

_______ are expenses incurred to minimize the suspension of business, such as relocation expenses.

Answer 35

Extra expenses

Question 36

Coverage applies during the period of restoration, which begins _______ after the direct physical loss.

Answer 36

immediately

Question 37

The _______ covers perishable stock from refrigerator breakdown or on- or off-premises power outage beyond the insured’s control.

Answer 37

Spoilage Coverage Endorsement

Question 38

The _______ increases the business personal property limit during a specified period of time.

Answer 38

Peak Season Limit of Insurance Endorsement