Unit 10 Commercial package policy (CPP) notes and quiz questions

A condition stating that an insured's rights and duties under the policy cannot be transferred without the written consent of the insurance company, except in the case of death of a named insured, is sometimes called A. Assignment clause B. Transfer clause C. Right to Assign clause D. Named Insured clause

A. Assignment clause

Endorsements that may be used with more than one line of insurance are also known as A. interline endorsements B. monoline endorsements C. biline endorsements D. dual-line endorsements

A. interline endorsements

A Commercial Package Policy consists of all of the following EXCEPT A. Common Policy Declarations B. Common Policy Components C. Common Policy Conditions D. One or more coverage parts

B. Common Policy Components

The person whose name is listed first in the declarations and who is assigned certain responsibilities is A. the insurer B. the first-named insured C. the legal representative D. the business

B. the first-named insured

All of the following are commercial casualty forms EXCEPT A. general liability B. farm liability C. crime D. ocean marine

D. ocean marine

Commercial Package Policy (CPP)

-Can include almost any commercial coverage a business might need, including property and casualty -Common Policy Declarations (5P's) -Common Policy Conditions: first named insured acts on behalf of all insureds -Two or more coverage parts -One Property/One Casualty -Cancellation: notices to 1st named insured, premium refund to 1st named insured, request from 1st named insured -Changes and Premiums: change request from 1st named insured, 1st named insured responsible for pay

The 2 forms that are always included in the CPP are the common policy conditions and A. the common policy declarations B. the common coverage parts C. the common policy exclusions D. the interline endorsements

A. the common policy declarations

Which of the following conditions states that the first named insured is authorized to make changes in terms of the policy with insurance company consent? A. Inspections and surveys condition B. Transfer of your rights and duties under this policy condition C. Changes condition D. Cancellation condition

C. Changes condition

Which of the following can be included in a CPP? A. Workers' Compensation B. Life Insurance C. Commercial Buildings D. Health and Disability Insurance

C. Commercial Buildings

Which of the following statements concerning the CPP is NOT correct? A. Almost all commercial risks are eligible for coverage under the CPP. B. A complete CPP includes common policy declarations, common policy conditions, and one or more coverage parts. C. The CPP can only include property coverage. D. The insured can choose a variety of eligible commercial coverages based on his/her needs.

C. The CPP can only include property coverage.

Which of the following coverages is NOT eligible for Commercial Package Policy? A. Commercial property coverage B. Commercial crime coverage C. Commercial auto coverage D. Commercial aviation coverage

D. Commercial aviation coverage

Which general form contains info about who is insured, when he is insured, and for what lines? A. Common Policy Declarations B. Common Policy Conditions C. Common Policy Exclusions D. Common Policy Cover Page

A. Common Policy Declarations

Which of the following is NOT eligible for coverage in a CPP? A. Commercial Property B. Commercial General Liability C. Workers' Compensation D. Commercial Inland Marine

C. Workers' Compensation

Which section of the CPP varies based on the lines included? A. declarations B. conditions C. coverage parts D. exclusions

C. coverage parts