Home > Preview
The flashcards below were created by user
on FreezingBlue Flashcards.
What are the components of Iso's Commercial Package policy (CPP)?
- 1. Common Policy Declarations
- 2. Common Policy Conditions
- 3. Two or more coverage parts
what info is shown on a CPP's Common policy declarations?
- 1. policy #
- 2. Names of the insurer and the producer.
- 3. Name, address, and business description of the named insured.
- 4. Effective date and expiration date of the policy.
- 5. Premium for each coverage part included in the policy.
- 6. Total premium
It also includes a general statement, known as the "in consideration" clause, in which the insurer agrees with the named insured to provide the incurance as stated in the policy in returen for the payment of premium and subject to all the terms of the policy.
List and briefly describe the six common policy conditions in a CPP.
- 1. Cancellation: the insured may cancal the policy at any time by mailing or delivering written notice of cancellation to the insurer. If two or more insureds are listed in the declations, only one listed first ("the first named insured") can request cancellation. The insurer can cancel the policy by mailing or delivering written notice of cancellation to the first named insured. In almost every state, the cancellation condition is superseded by state law, and a state-specific cancellation endorsement is added to the policy.
- 2. Changes: THe CPP policy can be changed only by a written endorsement issued by the insureer. SUch changes may be made, with the insurer's consent, upon the request of the first named insured. Only the first named insured has the authority to request policy changes, and the insurer is authorized to make changes upon the request of the 1st named insured without specific permission of any other insured.
- 3. Examination of your books and records: the insurer reserves the right to examine and audit the insured's book and records related to the policy at any time during the policy period and for up to three years after the termination of the policy.
- 4. Inspections and surveys: the insurer has the right, but not the obligation, to inspect the insured's premises and operations at anhy reasonable time during the policy period. SUch inspections are important in determining the insurability of the insured's property and operations, in setting proper insruance rates, and in making loss control recommendations.
- 5. Premiums: The 1st named insured is responsible for paying the premium under the policy. The insuer must also pay any return premium under the policy to the first named insured.
- 6. Transfer of Rights and Duties under the policy: the insured cannot transfer any rights or duties undert he policy to any other person or organization without the written consent of the insurer. The fransfer of rights and duties condition also provides specifically for the automatic right and duties under the policy are automaticaly transferred to the insured's legal representative, or, if the insured's legal representative has not yet been appointed, to any person having proper temporary sutody of the insured property.
Briefly describe the elements in each coverage part of a CPP?
- 1. Declarations page that pertains only to that coverage part.
- 2. one or more coverage forms, which contain insuring agreements, exclusions, and other policy provisions.
- 3. applicable endorsements, which modifu the terms of the coverage forms to fit the needs of the particular insured.
Give six examples of coverage parts that may beused in ISO's Commercial Package Policy.
- 1. Commercial property
- 2. Commercial general liability.
- 3. Commercial crime.
- 4. Equipment breakdown
- 5. Commercial inland marine.
- 6. Commercial auto.
Danford Grocery is a local vegatable and fruit distributor. Farmers from the surrounding areas bring their produce to Danford, which then purchases the produce and sells it to customers. Identify the necessary components of a CPP for Danford, based on the following loss exposures: the store it owns, the customers on the premises, and Danford's cash transactions.
- 1. Common policy declarations
- 2. Common policy conditions
- 3. Commercial property coverage part: Dec page, Coverage forms, causes of loss forms, conditions.
- 4. Commercial general liability coverage part: Dec page, coverage form
- 5. Commercial crime coverage part: Dec page, Coverage forms.