Commercial Package Policies

The package policy term can be written for a specific term not to exceed _________________________ years

3 years

All of the following are listed on the common declarations page of a Commercial Package Policy (CPP) EXCEPT:

A list of perils insured against

Commercial Package policies use a single declarations page and single conditions page,

And combine them with two or more coverage parts.

Reported value basis coverage

Begins on the date construction begins, if the building does not have a basement

What are some additional specialized commercial policies?

Professional Liability Employment Practices Liability Liquor Liability Pollution Liability Policies

Commercial Package Policy that is NOT covered?

Accounts, bills, currency, food stamps Animals Automobiles held for sale Bridges, roadways, walks Contraband Basement

Commercial Package Policies

Allows a business to combine multiple types of monoline commercial property and/or liabilities into a package policy

Coverage A of the Building and Personal Property coverage form,

Applies to the building (structure)

Coverage B of the Building and Personal Property coverage form,

Applies to the business personal property owned by the insured.

Coverage C of the Building and Personal Property coverage form,

Applies to the personal property of others in the care, custody and control of the insured.

Automobiles held for sale,

Are listed on the Building and Personal Property coverage form as "property not covered"

For a modification factor to apply on a Commercial Package Policy,

Both property and liability coverage must be included on the policy.

The condominium forms covers a condominium association's direct physical loss or damage to:

Buildings Business Personal Property On Premises Personal Property of Others in the care

Workers Compensation, aviation, and ocean marine coverages

Cannot be included in a CPP.

Commercial Package policies can also be referred to as,

Commercial Multi-Peril policies or Special Multi-Peril policies

What are the commercial package policies coverage parts?

Commercial Property Commercial Business Auto Business Income Commercial Crime Inland Marine Farm Equipment Breakdown Commercial General Liability

Which of the following statements TRUE regarding Commercial Property coverage?

Commercial property coverage can be written as both as both a monoline policy and as part of package policy.

Legal Liability Coverage Form

Commercial property program will cover the insured for their negligence in damaging property that was in the care, custody, and control of the insured

Builders' Risk coverage can be written on either a _________________________ or __________________________________.

Completed Value Basis; Reported Value Basis

The Building and Personal property is the most common purchase commercial property. What are the three main coverages?

Coverage A: Building Coverage B: Business Personal Property Coverage C: Personal Property of Others

Which of the following is NOT TRUE of the coverage for Business Personal Property and Personal Property of Others in a Commercial Property policy?

Coverage is provided while the property is located within a covered vehicle at any location as long as the vehicle is owned by the insured business.

Condominium Commercial Unit-Owners Form

Covers a commercial condominium unit-owners business personal property and personal property of others in the insured's care, custody or control.

What is the Builder's Risk Coverage Form?

Covers building contractors, subcontractors, and/or the owners of new buildings under construction and existing building undergoing construction of additions, alternations or repairs.

Completed Value basis cover risk for the

Full completed value of the building under construction

What is covered under Building and Personal Property coverage form Coverage B?

Furniture, fixtures, machinery, and equipment Stock The value of labor, materials, or supplies Improvements and betterments Leased personal property

Other risks that cannot be included in a Commercial Package Policy,

Include the Businessowners policy, any risk eligible for the Homeowners policy, an coverages excluded by state statute

Leased business personal property of the insured,

Is covered by Coverage B of the Building and Personal Property coverage form.

The cost to restore electronic data that controls the building's elevators,

Is covered under Coverage A of the Building and Personal Property coverage form.

The most frequently purchased and used Commercial Property coverage form,

Is the Building and Personal Property coverage form

A Commercial Package policy allows a business to combine

Multiple types of monoline commercial property and/or liability policies into a package policy.

The package policy term can be written for a specific term,

Not to exceed three years, or on a continuous basis

What is covered under Building and Personal property coverage form Coverage A?

Permanently installed fixtures Permanently installed machinery Outdoor fixtures Outdoor furniture Fire extinguishers, ladders

What is covered under Building and Personal Property coverage form Coverage C?

Provided for personal property of others while it is in the care, custody or control of the insured while located at the insured's premises.

The "control of property" condition of the Commercial Property policy:

States that a negligence act of someone beyond the insured's direction or control will not affect the coverage.

Which of the following Commercial Property conditions is meant to prevent "over indemnification" of the insured?

The "Insurance Under Two or More Coverages" condition.

What are the Commercial Property Coverage Forms?

The Building & Personal Property Form Builder's Risk Condominium Association Form Condominium Commercial Unit Owners Business Income with Extra Expense Business Income without Extra Expense Extra Expense Legal Liability

Katrina has her commercial building covered by a Commercial Package policy. Which of the following is the section within her policy where she would see the dimensions of her building listed?

The Commercial Property declarations page.

All of the following would NOT be covered under any section of the Business and Personal Property coverage form, EXCEPT

The cost to restore electronic data that was corrupted by a covered cause of loss.

All of the following statements are true when an insurance company cancels a STANDARD Commercial Package Policy, Except:

The insurer is not permitted to cancel a CPP mid-term

There are several different Commercial Property coverage forms that can be added to Commercial Package policy. Which of the following is NOT described on a Commercial Property form?

The number of buildings the insured owned that are not covered by the policy.

All of the following are true concerning Commercial Package policy modification factors, EXCEPT:

The numerical figure used as a modification is set within each coverage part of the stand policies that make up the package.

Commercial Package policies allow a business to customize insurance coverage,

To meet the specific needs of the business.

Coverage B and Coverage C of the Building and Personal Property coverage form

Will cover property that is located inside the insured structure or within 100 feet of the structure in the open or in a vehicle.

What coverage is NOT eligible to be added to a commercial package policy?

Worker's Compensation Director's and Officers (D & O) Life Insurance Disability Insurance