FX LOUISIANA PROPERTY
COMMERCIAL EXAM QUESTIONS WITH
CORRECT ANSWERS
A specific coverage part is listed on the Commercial Package Policy (CPP) Declarations
Page, but there is no premium shown. What does that mean?
(a) Coverage is automatic.
(b) There is no coverage.
(c) Coverage applies without premium.
(d) This must be a misprint on the form - Answer- (b) There is no coverage
If no premium amount is shown, there is no coverage for that coverage part
page 74
According to the common policy conditions for a commercial package policy, if the
insured dies, the policy rights and duties...
(a) automatically transfer to a legal representative
(b) transfer to a legal representative after court appointment
(c) die with the insured
(d) are suspended until probate is completed - Answer- (a) automatically transfer to a
legal representative
The Insurance Services, Inc. (ISO) common policy conditions for the commercial
package policy stares that in the event the insured's death, rights, and duties are
automatically transferred to the insured's legal; representative
page 75
In a commercial package policy, who may cancel the policy in writing and make
changes to the policy with the consent of the insurer?
(a) First named insured
(b) Last named insured
(c) Beneficiary
(d) Insurer - Answer- (a) First named insured
Some commercial policies may have more than one named insured. Complications and
confusion over contractual duties are reduced by making the insurer and the first named
insured the primary parties for carrying out responsibilities.
, page 75
The common policy condition is a modular part combined with other parts to create the
contract. The "common policy condition" section contains provisions that are applicable
to all lines of coverage that may be included in the policy. Which of the following
provisions would be found in the common policy conditions section of the policy?
(a) The insurer is granted the right to audit books and records of the insured relating to
the policy for a period of up to 5 years after the end of the policy
(b) The first named insured may cancel the policy at any time by giving written notice to
the insurer
(c) Prior to the insurer making inspections, surveys, and reports relating to the
insurance, approval from the insured must be obtained
(d) Requests for any change in the policy requested by the insured may be made by the
second name insured - Answer- (b) The first named insured may cancel the policy at
any time by giving written notice to the insurer
The insurer is granted the right to audit books and records for a period of up to 3 years.
The insurer is automatically granted the right to make inspections, surveys, and such
relating to the insurance. Only the first named insured may make requests for any
changes in the policy.
page 75 and 78
Business Personal Property (BPP) Coverage Form covers all of the following
EXCEPT...
(a) stock
(b) automobiles held for sale
(c) furniture and fixtures
(d) machinery that is not permanently installed - Answer- (b) Automobiles held for sale
Automobiles held for sale are among the exclusions in the BPP Form. The rest are
covered types of property.
page 76
Which item would NOT be covered under building coverage in a building and personal
property policy?
(a) The tables and chairs used by a coffee shop as part of their outdoor seating
(b) The building housing a dress shop
(c) The ice cream case permanently installed in an ice cream shop
(d) The bulldozer being used as part of a business addition under construction that is
parked 500 feet from the building - Answer- (d) the bulldozer being used as part of a
business addition under construction that is parked 500 feet from the building
COMMERCIAL EXAM QUESTIONS WITH
CORRECT ANSWERS
A specific coverage part is listed on the Commercial Package Policy (CPP) Declarations
Page, but there is no premium shown. What does that mean?
(a) Coverage is automatic.
(b) There is no coverage.
(c) Coverage applies without premium.
(d) This must be a misprint on the form - Answer- (b) There is no coverage
If no premium amount is shown, there is no coverage for that coverage part
page 74
According to the common policy conditions for a commercial package policy, if the
insured dies, the policy rights and duties...
(a) automatically transfer to a legal representative
(b) transfer to a legal representative after court appointment
(c) die with the insured
(d) are suspended until probate is completed - Answer- (a) automatically transfer to a
legal representative
The Insurance Services, Inc. (ISO) common policy conditions for the commercial
package policy stares that in the event the insured's death, rights, and duties are
automatically transferred to the insured's legal; representative
page 75
In a commercial package policy, who may cancel the policy in writing and make
changes to the policy with the consent of the insurer?
(a) First named insured
(b) Last named insured
(c) Beneficiary
(d) Insurer - Answer- (a) First named insured
Some commercial policies may have more than one named insured. Complications and
confusion over contractual duties are reduced by making the insurer and the first named
insured the primary parties for carrying out responsibilities.
, page 75
The common policy condition is a modular part combined with other parts to create the
contract. The "common policy condition" section contains provisions that are applicable
to all lines of coverage that may be included in the policy. Which of the following
provisions would be found in the common policy conditions section of the policy?
(a) The insurer is granted the right to audit books and records of the insured relating to
the policy for a period of up to 5 years after the end of the policy
(b) The first named insured may cancel the policy at any time by giving written notice to
the insurer
(c) Prior to the insurer making inspections, surveys, and reports relating to the
insurance, approval from the insured must be obtained
(d) Requests for any change in the policy requested by the insured may be made by the
second name insured - Answer- (b) The first named insured may cancel the policy at
any time by giving written notice to the insurer
The insurer is granted the right to audit books and records for a period of up to 3 years.
The insurer is automatically granted the right to make inspections, surveys, and such
relating to the insurance. Only the first named insured may make requests for any
changes in the policy.
page 75 and 78
Business Personal Property (BPP) Coverage Form covers all of the following
EXCEPT...
(a) stock
(b) automobiles held for sale
(c) furniture and fixtures
(d) machinery that is not permanently installed - Answer- (b) Automobiles held for sale
Automobiles held for sale are among the exclusions in the BPP Form. The rest are
covered types of property.
page 76
Which item would NOT be covered under building coverage in a building and personal
property policy?
(a) The tables and chairs used by a coffee shop as part of their outdoor seating
(b) The building housing a dress shop
(c) The ice cream case permanently installed in an ice cream shop
(d) The bulldozer being used as part of a business addition under construction that is
parked 500 feet from the building - Answer- (d) the bulldozer being used as part of a
business addition under construction that is parked 500 feet from the building
