Chapter 11 - The Commercial Package Policy

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Fsspc
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  • 1/6 Questions

    Under a CPP, when does the Inspections and Surveys condition give the insurance company the right to inspect the insured's premises?

    • At any time
    • Quarterly
    • Every six months
    • Once a year
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About This Quiz

This quiz covers key aspects of the Commercial Package Policy (CPP), including eligibility, policy declarations, cancellation rights, and inspection conditions.

Insurance Quizzes & Trivia

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  • 2. 

    Under a CPP, how long after the end of the policy period can the insurance company examine the insured's books and records?

    • 10 days

    • 3 months

    • 1 year

    • 3 years

    Correct Answer
    A. 3 years
    Explanation
    D is correct. The insurance company can examine an insured's books and records up to three years after the end of the policy period.

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  • 3. 

    Under a CPP, how many days advance notice is required if the insurance company is cancelling the contract for nonpayment of premium?

    • 10 days

    • 21 days

    • 30 days

    • 60 days

    Correct Answer
    A. 10 days
    Explanation
    A is correct. When a CPP is cancelled by the insurer for nonpayment of premium, it is required to give notice at least 10 days in advance. In all other cases of permitted cancellation by the insurer, it must give notice at least 30 days in advance.

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  • 4. 

    Which of the following are contained in the Common Policy Declarations?

    • The policy period

    • The name and mailing address of the insured

    • Conditions specifying the insured's duties following a loss

    • The insured's premium for each coverage part purchased

    Correct Answer(s)
    A. The policy period
    A. The name and mailing address of the insured
    A. The insured's premium for each coverage part purchased
    Explanation
    A, B, and D are correct. The Common Policy Declarations contains information about who is insured, when he or she is insured, and for what lines he or she is insured. It includes the name and mailing address of the named insured, the policy period, and a summary of the premiums charged. Loss conditions are described in the policy form, not the declarations.

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  • 5. 

    Who may cancel a CPP?

    • Any named insured.

    • The insurance company.

    • The first named insured.

    • None of the above; once a policy is issued, it can never be cancelled.

    Correct Answer(s)
    A. The insurance company.
    A. The first named insured.
    Explanation
    B and C are correct. Under the Common Policy Conditions, certain responsibilities and obligations are assigned to the first named insured. One of these is cancellation of the policy. The insurance company may also cancel the policy under certain circumstances.

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  • 6. 

    Which of these statements concerning the CPP are correct?

    • Almost all commercial risks are eligible for coverage under the CPP.

    • The insured can choose a variety of eligible commercial coverages to tailor the package to fit his or her specific business insurance needs.

    • A complete CPP includes Common Policy Declarations, Common Policy Conditions, and two or more coverage parts.

    • A CPP can include Ocean Marine and Aviation insurance.

    Correct Answer(s)
    A. Almost all commercial risks are eligible for coverage under the CPP.
    A. The insured can choose a variety of eligible commercial coverages to tailor the package to fit his or her specific business insurance needs.
    A. A complete CPP includes Common Policy Declarations, Common Policy Conditions, and two or more coverage parts.
    Explanation
    A, B, and C are correct. Ocean Marine and Aviation insurance are not eligible for the CPP.

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Quiz Review Timeline (Updated): Mar 20, 2023 +

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  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Feb 25, 2009
    Quiz Created by
    Fsspc
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