Unit 10: Commercial Package Policy (CPP)

Question 1

Commercial Package Policy (CPP)

Answer 1

Allows businesses to combine coverage for multiple risks in one place (shopping cart analogy)

• Common policy declarations
• Common policy conditions
• Two or more coverage parts
• One property/one casualty

Question 2

CPP Declarations

Answer 2

Named insured

• If an individual - includes spouse
• If individual partners - includes spouse
• If a corporation - includes individual officers and directors - includes

Question 3

CPP Common Conditions

Answer 3

• First-named insured
• Acts on behalf of all insured

Question 4

Cancellation

Answer 4

• Notices to first-named insured
• Premium refund to first-named insured
• Request from first-named insured

Question 5

Changes and Premiums

Answer 5

• Change request from first-named insured
• First-named insured responsible for payment of premium

Question 6

Examination of Books and Records

Answer 6

Right of insurance company

• Only for calculation of correct premium
• Up to 3 years after expiration

Right to inspect premises

• Purposes of insurability
• Not safety inspections

Question 7

Transfer of rights - change of insured

Answer 7

• Insurance company has to agree
• Automatic if named insured dies