Exam FX - CH 8 - Commercial Package Policy – Property Questions With Complete Solutions

Policy Components correct answer: Policy Cover Common Declarations Interline Endorsements Common Policy Conditions Coverage Part Components correct answer: Declarations Coverage Forms Conditions Endorsements General Form Structure correct answer: General Liability Commercial Property Inland Marine Commercial Auto Equipment Breakdown Crime Farm Policy Components - Common Declarations correct answer: Lists who, what, where, when, and how much Lists coverage parts that are in the policy Lists premium amounts Policy Components - Common Policy Conditions correct answer: Cancellation - First named IN may cancel at any time by written notice/Insurer may cancel reasonably with proper notice Changes - Only made by endorsement, and by first named insured Examination of books & records - Insurer has rights to audit books & records of IN up to 3 years after end of policy Inspections & surveys - Insurer can, but doesn't have to inspect Premiums - Payment from first named IN Transfer of rights & duties - (assignment) can only be granted w/ written consent Policy Components - Interline Endorsements correct answer: Apply, or could apply, to more than one coverage. Designed to eliminate redundancy and minimize number of endorsements in the policy