Chapter 11 - The Commercial Package Policy

6 Questions

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Policy Quizzes & Trivia

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Questions and Answers
  • 1. 
    Which of these statements concerning the CPP are correct?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

      A CPP can include Ocean Marine and Aviation insurance.

  • 2. 
    Which of the following are contained in the Common Policy Declarations?
    • A. 

      The policy period

    • B. 

      The name and mailing address of the insured

    • C. 

      Conditions specifying the insured's duties following a loss

    • D. 

      The insured's premium for each coverage part purchased

  • 3. 
    Who may cancel a CPP?
    • A. 

      Any named insured.

    • B. 

      The insurance company.

    • C. 

      The first named insured.

    • D. 

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

  • 4. 
    Under a CPP, how many days advance notice is required if the insurance company is cancelling the contract for nonpayment of premium?
    • A. 

      10 days

    • B. 

      21 days

    • C. 

      30 days

    • D. 

      60 days

  • 5. 
    Under a CPP, how long after the end of the policy period can the insurance company examine the insured's books and records?
    • A. 

      10 days

    • B. 

      3 months

    • C. 

      1 year

    • D. 

      3 years

  • 6. 
    Under a CPP, when does the Inspections and Surveys condition give the insurance company the right to inspect the insured's premises?
    • A. 

      At any time

    • B. 

      Quarterly

    • C. 

      Every six months

    • D. 

      Once a year