California Commercial Insurance
Exam Questions & Correct
Answers
What is a Modular Policy? - correct answer ✔✔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)? - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔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 Monoline form? - correct answer ✔✔A Monoline form only contains one 1 coverage
part.
(A single coverage policy)
, In a Commercial policy, who can cancel, request changes, is responsible for premium, and will
be the only person named on a refund of premium? - correct answer ✔✔The first named
insured.
NOTE: This may be an individual or a company.
What are the 6 common conditions in a Commercial policy? - correct answer ✔✔Cancellation,
Changes, Inspections and Surveys, Premiums,
How many days does the Insurer have to provide written notice to the Insured before
cancellation of their policy? - correct answer ✔✔10 days prior to the date of cancellation for
nonpayment of premium.
30 days prior to the date of cancellation for any other allowable reason.
NOTE: The insure must be able to prove it has mails the cancellation notice to the address on
file, although no proof of delivery of this notice is required.
When can an insurer cancel a policy? - correct answer ✔✔An insurer can cancel a policy at
anytime but only under certain conditions.
When can Examination of Books and Records be completed? - correct answer ✔✔At anytime
during the policy period and for up to three years after the policy ends/expires. This is done to
verify that the insure has collected the appropriate premium.
What is the Inspections and Surveys condition? - correct answer ✔✔The insurer has the right
but is not obligated to inspect the property and make recommendations. This is done for
insurability and rating only. It does not warrant the place safe or in compliance.
Exam Questions & Correct
Answers
What is a Modular Policy? - correct answer ✔✔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)? - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔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 Monoline form? - correct answer ✔✔A Monoline form only contains one 1 coverage
part.
(A single coverage policy)
, In a Commercial policy, who can cancel, request changes, is responsible for premium, and will
be the only person named on a refund of premium? - correct answer ✔✔The first named
insured.
NOTE: This may be an individual or a company.
What are the 6 common conditions in a Commercial policy? - correct answer ✔✔Cancellation,
Changes, Inspections and Surveys, Premiums,
How many days does the Insurer have to provide written notice to the Insured before
cancellation of their policy? - correct answer ✔✔10 days prior to the date of cancellation for
nonpayment of premium.
30 days prior to the date of cancellation for any other allowable reason.
NOTE: The insure must be able to prove it has mails the cancellation notice to the address on
file, although no proof of delivery of this notice is required.
When can an insurer cancel a policy? - correct answer ✔✔An insurer can cancel a policy at
anytime but only under certain conditions.
When can Examination of Books and Records be completed? - correct answer ✔✔At anytime
during the policy period and for up to three years after the policy ends/expires. This is done to
verify that the insure has collected the appropriate premium.
What is the Inspections and Surveys condition? - correct answer ✔✔The insurer has the right
but is not obligated to inspect the property and make recommendations. This is done for
insurability and rating only. It does not warrant the place safe or in compliance.
