Commercial Package Policy (CPP)

15%

A building insured with commercial property insurance has been vacant 90 days. The insurer will NOT pay for damaged caused by vandalism, sprinkler leakage, glass breakage, water damage, theft, or attempt of theft. If the loss is cause by any other peril (open) the insurer will reduce the amount it other wise would have paid by _____%.

workers compensation coverage (this is NOT available through the CPP)

A commercial package policy (CPP) allows the insured to select the coverage needed and customize the policy to meet the needs o the insured's business. In a CPP, the business owner may select from all of the following types of coverage EXCEPT: A) crime coverage B) boiler & machinery coverage C) general liability coverage D) workers compensation coverage

there is no coverage

A specific coverage part is listed on the commercial package policy (CPP) declarations page, but there is no premium shown. what does that mean? A) coverage is automatic B) there is no coverage C) coverage applies without premium D) this must be a misprint on the form

automatically transfer to a legal representative

According to the common policy conditions for a commercial package policy (CPP) , if the insured dies, the policy rights and duties A) automatically transfer to a legal representative B) transfer to a legal representative after court appointment C) die with the insured D) are suspended until probate is complete

valuations and/or settlement provisions

All of the following are essential elements of commercial package policy (CPP) except: A) declarations page B) policy conditions C) valuations and/or settlement provisions D) interline endorsements

at a single location at the same time and from the same cause

In equipment breakdown coverage, all accidents would be considered a single accident if they occur A) at a single location at the same time and from the same cause B) at all insured locations at the same time and from the same cause C) at the same location within 24 hour period D) at the same location within a 48 hour period

Declarations

Unlike the homeowners & dwelling policies, no percentage of building coverages, such as other structures or personal property, are automatically included. If the insured wants a particular building covered, it needs to be listed in the _________ with an appropriate limit of insurance.

25,000

equipment breakdown coverage is written with a single limit of insurance per accident. What is the sublimate for hazardous substance cleanup or repair or replacement of contaminated property? A) 15,000 B) 20,000 C) 25,000 D) 50,000

no coverage

if no premium amount is shown, there (is/no) coverage for that coverage part.

the first named insured may cancel the policy at any time by giving written notice to the insurer

the common policy condition is a modular part combined with other parts to create the contract. the common policy condition section contains provisions that are applicable to all lines of coverage that may be included in the policy. which of the following provisions would be found in the common policy conditions section of the policy? A) the insurer is granted the right to audit books & records of the insured relating to the policy for a period of up to 5 years after the end of the policy B) the first named insured may cancel the policy at any time by giving written notice to the insurer C) prior to the insurer making inspections, surveys, and reports relating to the insurance, approval from the insured must be obtained D) requests for any changes in the policy from the insured may b made by the second named insured

description of the property insured (provides the info as to who, what, where, why, and how much)

the commercial property declarations page contains which of the following information A) description of the property insured B) common policy conditions C) interline endorsements D) cause of loss forms

for inspections & examinations

the major portion of the premium for an equipment breakdown policy pays A) for replacement parts B) for inspections & examinations C) for repairs after loss D) coverage for bodily injury and property damage of others

the bulldozer being used as part of a business addition under construction that is parked 500ft from the building (has to be within 100ft of the premises)

which item would NOT be covered under building coverage in a building & personal property policy? A) tables & chairs used by a coffee shop as part of their outdoor seating B) the building housing a dress shop C) the ice cream caste permanent installed in an ice cream shop D) the bulldozer being used as part of a business addition under construction that is parked 500ft from the building

certificate of authority

which of the following is NOT found in a CPP A) common policy conditions B) common policy declarations C) interline endorsements D) certificate of authority

first-named insured

In commercial package policies (CPP) who may cancel the policy in writing and make changed to the policy with the connect of the insurer?

monoline

A _________ policy contains only one coverage part. EX: a coverage (i.e. general liability) can be written separately. You do not need the entire policy in order to pick up that particular coverage. You can separate it & write it separately as a ______.

completed value form

A builders risk form is most often written as which of the following? A) reporting form B) specific value form C) completed value form D) scheduled form

all accidents at a single location, at the same time, by the same cause

what would be considered a single accident in equipment breakdown coverage (boiler & machinery)

a share of the loss

when other insurance is written on the same basis as a CPP, what is the insurer obligate to cover?

automobiles held for sale (are among the exclusions in the BPP form the rest are covered types of property)

Business personal property coverage form covers all of the following EXCEPT: A) stock B) automobiles held for sale C) furniture and fixtures D) machinery that is not permanently installed

3 years

CPPs (commercial package policy) insurer's are granted the right to audit books and records of the insured relating to the policy for a period up to ____ years after policy expiration.

basic, broad, special

Commercial property coverage can be written with one of three causes of loss forms. what are they?

all volcanic eruptions within a 72 hour period will be considered one occurrence (one event)

The insured with a homeowners policy has had damage to his property caused by a volcano. Which of the following is true? A) all volcanic eruptions within a 72 hour period will be considered one occurrence B) none of the damage is covered C) all eruptions are considered separate occurrences no matter how close D) coverage for each volcanic eruption would require a separate deductible

policy cover policy declarations interline endorsements lines of insurance declaration page lines of insurance coverage forms common policy conditions lines of insurance condition causes of loss forms endorsements

What are the modular parts that are combined to create the contract in a commercial packaged policy aka what components make up a (CPP)?

Commercial Package Policy (CPP)

What does CPP stand for?

certificate of authority

Which of the following is NOT found in a commercial package policy? A) common policy conditions B) common policy declarations C) interline endorsements D) certificate of authority

monoline

Which policy consist of the declarations and conditions, endorsements, and other attachments applicable to a single line of insurance? A) commercial package B) monoline C) insurance D) casualty

the surf side club waterfront restaurant is damaged when flood waters rise and seep into the restaurant

Which situation would NOT be covered by the basic Causes of Loss form under a commercial property policy (CPP)? A) Piccolo Pete's cafe has its door broken by vandals trying to get inside B) the automatic fire protective sprinkler system inside new realities book shop leaks, causing damage to store C) Gordons motorcycle heaven is damaged by the sudden sinking of land created by the action of water on limestone D) the surf side club waterfront restaurant is damaged when flood waters rise and seep into the restaurant

30 days (coverage is for 30 days for newly acquired building and personal property that are similar in use to the property insured)

a business owner has a builder & personal property policy that covers a shed in which he stores extra parts. if he buys a second shed for the same purpose, this will be automatically covered for how long? A) 15 days B) 30 days C) 60 days D) 90 days

10 days

under business owners policy Section I, if an insurer wants to non renew a policy for nonpayment of premium, how many days before the expiration date must the insurer notify the mortgageholder? A) 10 days B) 15 days C) 20 days D) 30 days

sprinkler leakage

under the commercial property coverage program, the basic causes of loss form insures against loss caused by A) nucelar hazard B) power failure off the premises C) sprinkler leakage D) earth movement

-Commercial property -General Liability -Crime -equipment breakdown -Auto -Inland Marine -Farm

what are the coverage parts that may be included in a Commercial Package Policy (CPP)?

interline endorsements

what is the name for policy endorsements that may apply to more than one coverage part?

the building or structure, temporary structures, foundations, fixtures, equipment, and materials and supplies within 100 FT of the premises.

what type of property would be covered under the Builder's Risk Coverage form?