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). What is the Concealment, Misrepresentation or Fraud Coverage condition? - -this condition states that, if intentional concealment, misrepresentation, or fraud on the part of the insured is discovered, the insurer has cause to void the contract and deny coverage. NOTE: This condition relates only to the Property Coverage portion of the policy. What is the Control of Property condition? - -This condition expresses the understanding that the insured may not alway have control over what happens to the insureds property. (E.G. If someone else creates a hazard that causes a loss to the property). As long as the condition is outside of the insured's control, the coverage is not voided under these conditions. What is the Insurance Under Two or More Coverages condition? - -If more than one of the policy coverages apply to the same loss, the insurer will not pay more that the actual amount of the loss or damage. This provision is necessary because a loss to property might be covered under two or more coverage parts that can be included in a single package. This supports the principle of indemnity by preventing double recovery. What is the Other Insurance condition? - -This provision applies when there is more than one policy that applies to the loss. This condition has two parts: Pro Rata Liability and Other Insurance condition. Pro Rata Liability states that, if the