California Commercial Insurance | Questions with 100% correct answers | verified solutions

California Commercial Insurance | Questions with 100% correct answers | verified solutions What is a Modular Policy? - -A modular policy is a policy consisting of several different documents, none of which by itself forms a complete contract. What is a Commercial Package Policy (CPP)? - -A Commercial Package Policy is a modular policy that combines different forms and more than one line of coverage. What must a CPP policy consist of? - -A Declaration Page (stating premium charges and coverage limits) A Policy Conditions (six conditions that apply to the entire contract) Two or more Coverage Modules/Parts What is the purpose of an Interline form? - -An Interline form is used to eliminate redundancy and minimize the number of pages. EXAMPLE: A CPP policy only contains one Declarations page listing all of the separate coverages. In this case the Declaration page would be considered an interline form. What is a Coverage Part? - -A Coverage Part is a component of a CPP or a Monoline Policy that contains the policy provisions relating to a particular line of business, such as commercial property or commercial auto. What are the 7 Coverage Parts? - -Commercial Property, Commercial General Liability, Commercial Automobile Insurance, Commercial Crime, Commercial Inland Marine, Boiler and Machinery Insurance (Equipment Breakdown), and Farm Coverage. What are the California Amendatory Endorsements? - -It states that if the policy has been in effect for less than 60 days and is not a renewal, the insurer can cancel for any reason. If the policy has been in effect for atleast 60 days or is a renewal, then the insurer may only cancel for one or more of the allowable reasons. It also states that if the insurer decides to non renew the policy, the insurer must provide notice atleast 60 days in advance, but not more than 120 days before the expiration date. What does "You" refer to a Commercial Policy? - -The named insured. What does "Your" refer to a Commercial Policy? - -The named insured on the declarations page and a resident spouse. What does "We" "Us" and "Our" refer to in a Commercial Policy? - -The insurance company providing the coverage. What are the 9 property conditions? - -Concealment, Misrepresentation or Fraud Coverage, Control of Property, Insurance Under Two or More Coverages, Other Insurance, Legal Action Against the Insurer, Liberalization. No benefit to Bailee, Policy Period and Coverage Territory, and Transfer of Rights of Recovery Against Others (Subrogation). Under the BPP, what does the Pollutant Clean Up additional coverage cover? - -This Coverage allows for up to $10,000 in expenses incurred by the insured as a result of a covered loss incolcing a requirement to extract pollutants from land or water at the described premises. This What does Aggregate Limit mean? - -The most an insurer will pay per policy period. What is the Legal Action Against the Insurer condition? - -An insured may bring legal action against an insurer if the insured feels coverage was denied when it should have been allowed, as long as two conditions have been met: 1) The suit is within two years of the loss date, and 2) All conditions and terms of the policy have been adhered to. What is the Liberalization condition? - -This provision states that if the insurer broadens the coverage without any additional premium being charged, the revision will automatically apply to the coverage part. As long as it is during the policy period or within 45 days prior to the effective date. What is the No Benefit to Bailee condition? - -The insurance will not ignore the obligations of the bailee for a loss to customers; property. The insurer will still pay the insured for covered losses, but this clause preserves the insurer's right to subrogate against the negligent bailee for the amount of the claim paid. What is a Bailee? - -A person who has possession, care, custody , or control of the property of customers for business p