Commercial Package Policy (CPP) Quizs

Common Policy Declarations

• Lists essential information such as the named insured, policy period, business description, and included coverage parts.

• Provides a summary of the policy limits and deductibles.

• Describes the claims process and procedures for filing a claim.

• Outlines the exclusions and limitations of the policy.

Causes of Loss Forms

• Basic, Broad, and Special forms, each covering different perils.

• Only Basic forms cover all perils.

• Broad forms are the most limited in coverage.

• Special forms do not cover any perils.

Common Policy Conditions

• Standard provisions that apply to all coverage parts unless modified.

• Specific rules that apply only to certain types of insurance.

• Guidelines for filing claims and reporting losses.

• Terms that are unique to each insurance policy.

Business Income Coverage Form

• Covers lost income due to suspension of operations from a covered loss.

• Covers physical damage to business property.

• Covers liability for injuries on business premises.

• Covers employee theft and fraud.

Medical Payments

• Covers legal fees for lawsuits against the insured.

• Pays for medical expenses to third parties injured on the insured’s premises, regardless of fault.

• Provides coverage for property damage caused by the insured.

• Offers compensation for lost wages due to injury on the premises.

Commercial General Liability (CGL) Coverage Forms

• Occurrence Form (CG 00 01) and Claims-Made Form (CG 00 02)

• General Liability Form (GL 00 01) and Professional Liability Form (PL 00 02)

• Occurrence Form (CG 00 03) and Claims-Made Form (CG 00 04)

• Comprehensive Form (CF 00 01) and Limited Form (LF 00 02)

Value Reporting Form

• Allows insured to report fluctuating inventory values to adjust coverage and premium.

• A form used to apply for a new insurance policy.

• A document for filing a claim after an incident occurs.

• A report that summarizes annual insurance costs.

Spoilage Endorsement

• Covers perishable goods damaged by power outage or equipment breakdown.

• Covers non-perishable goods damaged by fire or theft.

• Covers all types of goods regardless of condition.

• Covers only perishable goods during transportation.

Insured Contract

• A contract where the insured assumes liability, such as leases or easements.

• A contract that guarantees payment for damages regardless of liability.

• A contract that is not legally binding and can be canceled at any time.

• A contract that only covers property damage and not personal injury.

Inside the Premises — Theft of Money and Securities

• Covers theft, disappearance, or destruction of money/securities inside the premises.

• Covers theft of physical assets outside the premises.

• Covers loss of data and digital assets.

• Covers theft of personal belongings in public places.