The Commercial Package Policy Flashcards
What does a commercial package policy consist of?
Common policy declarations, common policy conditions, and two or more coverage parts
What is ISO’s Commercial Package Policy?
Can be used to provide almost any commercial insurance the insured might need. Almost all commercial risk are eligible for coverage under the CPP.
What are interline endorsements?
Endorsements that may be used with more than one line of insurance. Some interline endorsements are mandatory while others are optional
What two forms are always included in the CPP?
Common policy conditions and common policy declarations
Which section of the CPP varies based on the lines of coverage included?
Coverages
What are the common policy declarations?
Contains info about who is insured, when he is insured, and for what lines.
What does the common policy declarations include?
- The name and mailing address of the named insured
- The policy period, including the time and data coverage begins and ends
- A description of the covered business
- The coverage parts purchased and their premiums
- A list of forms applicable to all coverage parts
What are the common policy conditions?
Apply to all of the coverage parts contained in the CPP. Under the common policy conditions, certain responsibilities and obligations are assigned to the first named insured.
What is the cancellation condition?
Sets forth the circumstances under which the policy may be canceled. The firs named insured may be less than a pro rata refund to make up for the expense of issuing the contract.
What is the changes condition?
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. Terms can be amended or waived only by an endorsement issued by the insurer that is made a part of the policy.
What is the premiums condition?
States that the first named insured is responsible for the payment of all premiums and will receive and return premiums due.
What is the examination of your books and records condition?
States that the company may examine and audit the insureds books and records at any time during the policy period and for up to three years after the end of the policy period.
What is the inspections and surveys condition?
Gives the company the right to make inspections or surveys of the insureds business at any time. The company may choose to report on the conditions it finds and recommend any changes. These inspections are related to insurability and premiums ing and are not considered safety inspections.
What is the Transfers of Your Rights and Duties Under a This Policy condition?
States that insureds rights and duties under the policy cannot be transferred without the written consent of the insurance company, except in the case of the death of a named insured. This is sometimes called the assignment clause, and it is a common feature of both personal and commercial lines policies.
