Miscellaneous Personal Insurance & Commercial Package Policy (CPP)

Question 1

2 types of Flood Insurance

Answer 1

Emergency – goes into effect when the community applies to the NFIP, and it remains in effect until the government finalizes the flood insurance rates for that community
 Maximum dwelling coverage $35,000
 Maximum contents coverage $10,000
 Maximum commercial building $100,000
 Maximum commercial contents $100,000

Regular – after the community has been rate mapped
 Maximum dwelling coverage $250,000
 Maximum contents coverage $100,000
 Maximum commercial building $500,000
 Maximum commercial content $500,000

Question 2

Only buildings that may be insured on a replacement cost basis under a flood policy

Answer 2

Single-family dwellings (other than mobile homes) that are the primary residence of the insured

Question 3

2 most commonly used personal inland marine floaters

Answer 3

Personal Articles & Personal Effects

Question 4

Personal Articles

Answer 4

provides coverage for nine optional classes of personal property – the same 9 covered under the HOs scheduled personal property endorsement: jewelry, furs, cameras, musical instruments, silverware, gold equipment, fine arts, stamps, and coins

Question 5

Personal Effects

Answer 5

also called traveler’s baggage, is designed for individuals and families who want to insure their personal belongings while traveling. Open peril coverage on an unscheduled basis is provided for the types of property usually carried by tourists, such as clothing, cameras, sports equipment, and souvenirs

Question 6

Boatowners/Watercraft Package Policies are usually paid on

Answer 6

Actual Cash Value

Question 7

Commercial Package Policy (CPP) Eligible Coverages

Answer 7

Commercial property coverage forms
 Building and personal property
 Builder’s risk
 Condominium associations
 Condominium commercial unit owners
 Business income
 Extra expense
Commercial inland marine
Commercial casualty coverage forms
 Commercial auto
 General liability
 Crime
 Farm liability

Question 8

CPP Exclusions

Answer 8

Worker’s compensation
Life insurance
Health & disability insurance
Certain types of professional liability

Question 9

Along w the coverages needed by a business, the CPP also contains

Answer 9

Common policy declarations
Common policy conditions
2 or more coverage parts (property and casualty)
may also contain interline endorsements

Question 10

Interline Endorsements

Answer 10

endorsements that may be used w more than one line of insurance

Question 11

CPP Common Policy Conditions the Insurer will only respond to who?

Answer 11

The insurer will ONLY respond to the first-named insured

Question 12

CPP Changes Condition

Answer 12

states that only the first-named insured is authorized to make changes in the terms of the policy with the consent of the insurance company

Question 13

CPP Assignment Clause

Answer 13

states that the insured’s rights and duties under the policy cannot be transferred without the written consent of the insurance company. Only exception is if the name insured dies and then they are automatically transferred to the heir