Chapter 11 - The Commercial Package Policy
Support for FSS team to take INS Exam
- 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.
Correct Answer(s)
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.Explanation
A, B, and C are correct. Ocean Marine and Aviation insurance are not eligible for the CPP.Rate this question:
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- 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
Correct Answer(s)
A. The policy period
B. The name and mailing address of the insured
D. The insured's premium for each coverage part purchasedExplanation
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.Rate this question:
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- 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.
Correct Answer(s)
B. The insurance company.
C. 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.Rate this question:
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- 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
Correct Answer
A. 10 daysExplanation
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.Rate this question:
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- 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
Correct Answer
D. 3 yearsExplanation
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.Rate this question:
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- 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
Correct Answer
A. At any timeExplanation
A is correct. The insurance company has the right to inspect the insured's premises at any time.Rate this question:
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Mar 20, 2023Quiz Edited by
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Feb 25, 2009Quiz Created by
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