CPP (commercial package policy) (Ch 7)

the most significant different between the claims made and the occurrence form of a general liability policy is

what triggers the insurance coverage

Exclusions of the Special cause of loss form

(similar to DP-3 and HO-3) -wear and tear -deterioration -rust -dry rot -industrial smoke -pollutants -mechanical breakdown -settling -shrinking -expansion -vermin -rodents -insects -domestic animals -mold

Basic Broad and Special for Property

-agritainment excluded for property & liability coverage -endorsements available

what are the two forms

-claims made forms -occurrence form (mainly used)

how many coverage parts are there in CPP

-commercial property -general liability -commercial auto -crime -inland marine -equipment breakdown -farm

Other coverage form

-condo association; owner of building -condo unit owner; commercial customer owns the unit they occupy -legal liability; warehouse, storage facility, coverage based on contractual obligation

Broad & Special Form Cover Animal

-cover livestock, including electrocution, suffocation, attacks by wild animals, accidental shooting, drowning - loading or unloading mishaps

Mobile Agricultural Machinery

-covered on farm property but can be stand alone -$50,000 extension for newly acquired machinery fro 30 days

Optional Coverage - need to be purchased

-inflation guard (home up to date) -builders risk (ac unit, building material) -business income coverage form -contingent business interruption insurance (indirect loss) -the extra expense coverage form -earthquake endorsement (168 hr same event) -value reporting from (inventory fluctuates depending on the time of year) -peak season endorsement (holiday season) -ordinance or law coverage endorsement -spoilage coverage endorsement

what are the extended reporting policys and what are the time frames for each

-mini tail - 60 days from the end of the policy to report claim -midi tail - 1 to 5 yr supplemental tail -maxi tail - forever supplemental

Livestock

-newly acquired animals covered for 30 days -no freezing or poultry

CGL proves Medical Expense Payments for injuries if the expenses are insured and reported to the insured within ___________ yr

1 year

What/How are the categories of eligible marine risk

1.import 2.export 3.domestic shipments 4.instrumental of transpiration or communication 5. personal property floater 6. commercial floater

what is the time frame to report a claim

2 yr

Farm Coverage form

A- building/ residential dwelling B- other private structures C- household personal property D- loss of use E- scheduled farm personal property F- unscheduled farm personal property G- other farm structures

Occurrence form

BI or PD that occurs during the policy period trigger: did the "event" happen during the policy period

an Inland Marine policy that covers the insureds merchandise held for sale, the insureds property off premises, customers property in the custody of the insured and property being transported is a

Jewelers Block policy

CGL contracts cover what

L-lease contracts for equipment and premises E-easement or a license agreement A-agreement to indemnify S-sidetrack agreement, often known as a railroad siding E-elevator/escalator maintenance agreement

Types of property

Money- currency, coin, travelers check, money order Securities- negotiable & non instruments, or contracts representing money (ex-stamp) Property-other than money & securities

Theft (Larceny)

act of stealing, theft is a broad category including the act of stealing, such as burglary and robbery

Special cause of loss form

all risk of physical loss to both the building and business personal property. special maximum limits for theft of certain business property, such as a maximum of $2,500 for fur, jewelry, watches, and precious stones

Custodian

any of the insured partner/employee while having care and custody of the insured property inside the premises. not including watchperson or janitor

Messenger

any of the insured partner/employee while having care and custody of the insured property outside the premises

Watchperson

any person the insured retains to have care and custody of property inside the premises and who has no other duties

what are the types of cause of loss forms

basic broad special

Basic cause of loss form

covers REV FL SHAW (11) also include sprinkler leakage, sinkhole collapse, and volcanic action

Broad cause of loss form

covers basic perils + 3 more WWF, weight of ice, snow or sleet, water damage other than flood, and falling objects. in addition broken glass, collapse or the structure is also covered

which type of crime coverage requires more than just an inventory computation in order to prove a loss has occurred

employee theft

optional coverage on the commercial property policy to minimize the suspension of operations is know as

extra expense coverage

what crime form covers the holiday inn if a guest claims their property was damaged while in the hotel safe

guest property

in order for coverage to apply within the products and completed operations hazard of a CGL, the injury or damage must NOT

have occurred on the insureds premises

business income coverage is

indirect consequential coverage

The BI and PD coverage on a farm liability policy provides coverage for

injury to the guest

what is not covered in coverage A- bodily injury and property damage on a CGL

libel, slander, and false arrest are not covered

Equipment breakdown policy, expediting expenses does not cover the reasonable cost

of permanent replacement

The commercial package policy does NOT provide protection for what type of insurance?

personal liability.

The supplemental extended reporting period on a claims made CGL is

purchased for time frames of up to five years, or forever.

the taking of property by a visible sign of a forced entry or threat of bodily harm would be covered by which crime forms

robbery and safe burglary

the commercial cause of loss form that covers theft of business personal property is the

special

Extortion

surrender of property away from the premises as a result of a threat communicated to the insured to do bodily harm to an insured or person, or allegedly is, being held captive (kidnapping)

Safe Burglary

taking property from a locked safe or vault by a person unlawfully entering the safe vault as evidenced by visible marks of forced entry on the safe, also includes taking the safe/vault from the premises

Robbery

taking property from the care and custody of a person by someone who has caused or threatened to cause bodily harm

Claims made form

the claim must be reported while the policy is in force or with in 60 days after the expiration date . will contain a retroactive date trigger: when was the "event" reported?

Premises

the interior of that portion of any building occupied by the insured for the purpose of conducting business

Burglary

unlawfully entering or leaving the premises as evidenced by marks of forcible entry or exit. visible damage at the point of entry or exit

in order to avoid problems with under or under-insurance, a business with a fluctuating inventory should write coverage on a ___________ basis

value reporting

in the newest edition of the commercial property form which of the following is now considered part of the building

vegetated roofs

volunteer workers are covered under the commercial general liability policy but only under which of the following circumstances

while performing duties related to the business