Commercial Property

Question 1

___ made possible for most businesses to include most of their insurance coverage under one package policy for both commercial property and liability

Answer 1

Commercial Package Policy

Question 2

What are the essential elements of a commercial package policy?

Answer 2

Common Policy Declarations PAge
Common Policy Conditions
Interline Endorsements (if required)
Coverage Parts

Question 3

What will a commercial package policy include?

Answer 3

Commercial Property
Commercial General Liability
Crime Coverage
Commercial Inland Marine
Equipment Breakdown Coverage
Auto Coverage
Farm Coverage

Question 4

What are the components of a Commercial Property Package Policy?

Answer 4

1. Policy Cover
2. Common Policy Declaration
3. Interlines Endorsements
4. Lines of Insurance Declaration
5. Lines of Insurance Coverage
6. Common Policy Conditions
7. Lines of Insurance Conditions
8. Causes of Loss Forms: basic, broad, special
9. Mandatory Endorsements

Question 5

What is included in the Common Policy Declarations for Commercial Package Policy?

Answer 5

Insurance company's name
Policy period
Business Description
Coverage Parts
Premium
Policy forms

Question 6

What are the Common Policy Conditions in Commercial Package Policy?

Answer 6

Cancellation
Changes
Examination of books & records
Inspections & surveys
Premiums
Transfer of rights & duties

Question 7

___ contains the list of 7 coverage parts followed by the appropriate premium if there is coverage for the parts.

Answer 7

Common Policy Declarations

Question 8

Who has the right to cancel the policy & receive a premium refund?

Answer 8

First named insured

Question 9

How many days must the insurer allow for cancellation or nonrenewal of policy?

Answer 9

30

Question 10

How many days must the insurer allow for cancellation of a policy for nonpayment?

Answer 10

10

Question 11

Who may ask for changes to a policy?

Answer 11

First named insured

Question 12

How long can an insurer examine books & records after a policy is cancelled?

Answer 12

Up to 5 years

Question 13

___ can be made by the insurer at any time regarding insurabilit in the proper amounts of premiums.

Answer 13

Inspections & Surveys

Question 14

___ other responsibility of the first named insured.

Answer 14

Premiums

Question 15

___ a periodic payment to the insurance company to keep the policy in force.

Answer 15

Premium

Question 16

___ can only be done with the permission of the insured except in the death of a named insured.

Answer 16

Transfer of Rights and Duties

Question 17

___ apply to more than one coverage part and are included in one page.

Answer 17

Interline Endorsements

Question 18

Under Interline Endorsements, what are the “one or more coverage parts”?

Answer 18

Commercial Property Insurance
Commercial Inland Marine Insurance
Boiler & Machinery Insurance (Equipment Breakdwn Coverage)
Casualty Coverage

Question 19

Under Interline Endorsements, what is included in each of the coverage parts that apply only to that part?

Answer 19

Declarations & Conditions
All of the individual coverage forms
Endorsements

Question 20

What are the conditions usually found in Commercial Property Conditions (CPC) Forms?

Answer 20

Concealment, Misrepresentation, or Fraufd Coverage
Control of Property
Insurance Under 2 or more coverages
Legal Action against the insurer
Liberalization
No benefit to bailee
Other insurance
Policy Period, coverage territory
Transfer of rights of recovery against others (subrogation)

Question 21

What do all business need to cover risk of liability?

Answer 21

Commercial General Liability

Question 22

___ can be written alone or as a part of a commercial package.

Answer 22

Commercial General Liability

Question 23

___ can be written as a claims made form or occurence form.

Answer 23

Commercial General Liability

Question 24

What are the 3 major liability coverages in Commercial General Liability?

Answer 24

Coverage A; Bodily Injury & Property Damage Liability
Coverage B: Personal & Advertising Injury Liability
Coverage C: Medical Payments

Question 25

___ Provides protection for injury, sickness, disease, or death suffered by 3rd parties or property damage because of the insured’s business activities. Premises, operations, products, and completed operations hazard.

Answer 25

Coverage A: Bodily Injury & Property Damage Liability

Question 26

___ Covers pecific acts that result in injury to another, OTHER THAN physical injury

Answer 26

Coverage B: Personal & Advertising Injury Liability

Question 27

What coverage is Personal Injury under?

Answer 27

Coverage B: Personal & Advertising Injury Liability

Question 28

___ includes injuries caused by your business activities that do not involve bodily injury as libel, slander, or invasion of privacy

Answer 28

Personal Injury

Question 29

___ involves no physical injury but occurs when the insured inadvertently injures another during advertising their product or service

Answer 29

Advertising Injury

Question 30

Insures building while under construction.

Answer 30

Builder's Risk Form

Question 31

When does coverage begin in a Builder's Risk Form?

Answer 31

On the date construction begins and ends.

Question 32

Defines how much will be paid in the event the insurance limits do not meet the policy coinsurance requirements.

Answer 32

Coinsurance

Question 33

What is covered under Builder's Risk Form?

Answer 33

Debris Removal Preservation of Property Fire Department Service Charge Pollutant Clean-Up and Removal

Question 34

Covers the consequential loss of business income that occurs when a business must suspend operations because of a direct loss.

Answer 34

Business Income Coverage Form

Question 35

What is a time element form?

Answer 35

a form with direct relation of the time a business is unable to operate to the amount of the loss.

Question 36

___ means net income that would have been earned or incurred, and continuing normal operating expenses incurred, including payroll.

Answer 36

Business Income

Question 37

___ amounts the insurer will pay "in addition" to that stated policy limits.

Answer 37

Supplementary Payments

Question 38

___ covers property in the insured's care, custody, or control.

Answer 38

Legal Liability Coverage Form

Question 39

What are the 2 types of liability claim forms?

Answer 39

Claims-Made | Occurence

Question 40

___ losses that occur during the policy period even if the loss was not discovered or reported for years after the policy expired

Answer 40

Occurence form

Question 41

___ losses reported during the policy period so long as the loss occurred in or after the retroactive date.

Answer 41

Claims-made form

Question 42

___ protects against insuring occurrences and before the policy was written.

Answer 42

Retroactive Date

Question 43

___ often the original date the policy with the insurance company was written.

Answer 43

Retroactive Date

Question 44

___ is what makes a policy respond to a claim.

Answer 44

Coverage Trigger

Question 45

___ requires property to be insured for 80% of its replacement cost to have replacement cost coverage and for the coverage extensions to apply.

Answer 45

Coinsurance

Question 46

___ taking property from inside the premises by a person illegally entering.

Answer 46

Burglary

Question 47

___ taking property from a locked safe or vault by a person illegally entering the safe.

Answer 47

Safe Burglary

Question 48

___ taking property from the care of a person by a threat to cause bodily harm.

Answer 48

Robbery

Question 49

___ unlawful taking or property including burglary or robbery.

Answer 49

Theft

Question 50

___ custody of property inside the premises including the insured or employee, but not including a watchperson or janitor.

Answer 50

Custodian

Question 51

___ custody of property outside the premises including the insured, a relative, or an employee.

Answer 51

Messenger

Question 52

___ job is in custody of property inside the premises.

Answer 52

Watchperson

Question 53

___ an inland marine policy designed to cover movable commercial property, wherever it may be located.

Answer 53

Commercial Floater