Commercial Package Policy (CPP) Flashcard

Front

What are the three required components of a Commercial Package Policy (CPP)?

Back

Declarations, Conditions, Coverage Parts

Answer explanation

A Commercial Package Policy (CPP) requires three components: Declarations, Conditions, and Coverage Parts. Declarations provide policy details, Conditions outline the rules, and Coverage Parts specify the insured risks.

Front

What information is included in the Common Policy Declarations?

Back

Named insured and mailing address

Answer explanation

The Common Policy Declarations include essential information such as the named insured and mailing address, which identifies the policyholder and where communications should be sent.

Front

Which part of Emma's Commercial General Liability (CGL) policy would protect her against claims of making false statements that damaged a competitor's reputation?

Back

Libel and slander

Answer explanation

Coverage B under Commercial General Liability (CGL) specifically protects against libel and slander, which are forms of defamation. This coverage is distinct from bodily injury, property damage, and medical payments.

Front

Which incident is NOT covered under Coverage B of a Commercial General Liability (CGL) policy?

Back

Bodily injury

Answer explanation

Coverage B of CGL includes personal and advertising injury, such as copyright infringement, slander, and libel. However, bodily injury is covered under Coverage A, making it the correct answer as it is NOT covered under Coverage B.

Front

What is the key difference between Occurrence Form and Claims-Made Form insurance policies?

Back

Occurrence Form covers events during the policy period, while Claims-Made Form covers claims made during the policy period.

Answer explanation

The key difference is that the Occurrence Form covers events that happen during the policy period, while the Claims-Made Form covers claims that are made during the policy period, regardless of when the event occurred.

Front

Samuel, a contractor, installs wiring in a new home. Months after the job is completed, the faulty wiring causes a fire, resulting in property damage. Which of the following is an example of liability covered under Products & Completed Operations?

Back

A contractor installs faulty wiring that causes a fire months later.

Answer explanation

The correct choice is the contractor installing faulty wiring, as it represents a liability arising from completed operations that can lead to future claims, unlike the other options which do not fit this category.

Front

What is the purpose of the Extended Reporting Period (ERP) in a Claims-Made Form?

Back

To extend the time to report claims

Answer explanation

The Extended Reporting Period (ERP) allows insured parties additional time to report claims after the policy has expired, ensuring they can still seek coverage for incidents that occurred during the policy period.

Front

What is a major exclusion under Commercial General Liability (CGL) that applies when a company's own product malfunctions and causes damage to itself?

Back

Damage to your own product

Answer explanation

Damage to your own product is a major exclusion under Commercial General Liability (CGL) policies, meaning that claims for damage to products you manufacture or sell are not covered.

Front

Who is considered an insured under Emma and Henry's Commercial General Liability (CGL) policy?

Back

Partners and their spouses

Answer explanation

Under a Commercial General Liability (CGL) policy, partners and their spouses are considered insureds, providing them coverage for liabilities arising from the partnership's operations.

Front

Samuel owns a small grocery store. One day, a customer slips and falls inside the store, sustaining minor injuries. Samuel remembers the memory hook 'Coverage C = quick medical money.' What type of insurance coverage does this refer to?

Back

Medical payments for customers injured on premises

Answer explanation

The memory hook 'Coverage C = quick medical money' refers to medical payments for customers injured on premises, highlighting that this coverage provides immediate financial assistance for medical expenses.