Maryland Property and Casualty
(Commercial Policies) Test Questions
with Accurate Solutions.
Commercial Package Policy (CPP) - Answer May Include 7 coverage parts. If it includes more
than one coverage part, it is a CPP; \
Auto
Commercial Property
Crime
Equipment breakdown: known as boiler & machinery
Farm
General Liability
Inland Marine
Every policy is made up of modular parts to create a contract.
Each coverage part will be listed in Common Policy Declarations with its premium amount. Ex.
Auto - $900.00
Commercial Policy Parts - Answer Policy cover
Common policy declarations
Interline Endorsements
Declarations page or pages
Coverage form or forms
Common policy conditions
Causes of Loss Forms
Endorsements
Common Policy Declarations - Answer Answers to questions;
Who? - 1st named insured
What? - Corporation, LLC, etc.
When? - 12:01AM
Where? - Location
, Cancellation - written notice to cancel by both insurer and insured. Insurer must give reason
why.
Changes - changes can be made only by endorsement. Only first named insured may request
change.
Examination of Books and Records - insurer has right to audit books and records of insured
relating to policy period of up to 3 yrs or 36 months after end of policy
Inspections and Surveys - Insurer has right to make inspections, surveys, reports and
recommendations pertaining to insurance coverage
Premiums- First named insured responsible
Transfer of Rights and Duties - Insured can transfer their policy rights and duties to another
party only with written permission from their insurer. At death automatically transferred to
insured's legal rep.
Interline Endorsements - Answer eliminate unnecessary endorsements by streamlining those
that apply or could apply to more than one coverage part. Designed to cut down redundancy.
One or More Coverage Parts - Answer Made up of declarations, conditions, coverage forms,
endorsements and attachments that apply to a single line of insurance. Also included are
common policy declarations, common policy conditions and interline endorsements. When
policy contains only one part it is known as a monoline policy.
Commercial Property Conditions Form - Answer Contains numerous conditions in addition to
the conditions contained in the common policy conditions form. Some are in individual
coverage forms and others are attached by endorsement known as Commercial Property
Conditions
Commercial Property Conditions Form (common conditions) - Answer - Concealment,
misrepresentation, or fraud coverage: coverage voided if insured commits fraud relating to
policy
- Control of Property: any act or negligence by persons not under direction of insured will not
void their coverage.
- Insurance under 2 or more coverages: insurer will only pay for actual loss of coverage
regardless if loss is insured under coverage.
- Legal Action Against Insurer: Legal action can be taken against insurer if all policy's terms have
been met and action is brought against them within 3 yrs of loss.
- Liberalization: if insurer accepts to broaden coverage during policy within 45 days prior to
effective date it will apply without endorsement on policy
(Commercial Policies) Test Questions
with Accurate Solutions.
Commercial Package Policy (CPP) - Answer May Include 7 coverage parts. If it includes more
than one coverage part, it is a CPP; \
Auto
Commercial Property
Crime
Equipment breakdown: known as boiler & machinery
Farm
General Liability
Inland Marine
Every policy is made up of modular parts to create a contract.
Each coverage part will be listed in Common Policy Declarations with its premium amount. Ex.
Auto - $900.00
Commercial Policy Parts - Answer Policy cover
Common policy declarations
Interline Endorsements
Declarations page or pages
Coverage form or forms
Common policy conditions
Causes of Loss Forms
Endorsements
Common Policy Declarations - Answer Answers to questions;
Who? - 1st named insured
What? - Corporation, LLC, etc.
When? - 12:01AM
Where? - Location
, Cancellation - written notice to cancel by both insurer and insured. Insurer must give reason
why.
Changes - changes can be made only by endorsement. Only first named insured may request
change.
Examination of Books and Records - insurer has right to audit books and records of insured
relating to policy period of up to 3 yrs or 36 months after end of policy
Inspections and Surveys - Insurer has right to make inspections, surveys, reports and
recommendations pertaining to insurance coverage
Premiums- First named insured responsible
Transfer of Rights and Duties - Insured can transfer their policy rights and duties to another
party only with written permission from their insurer. At death automatically transferred to
insured's legal rep.
Interline Endorsements - Answer eliminate unnecessary endorsements by streamlining those
that apply or could apply to more than one coverage part. Designed to cut down redundancy.
One or More Coverage Parts - Answer Made up of declarations, conditions, coverage forms,
endorsements and attachments that apply to a single line of insurance. Also included are
common policy declarations, common policy conditions and interline endorsements. When
policy contains only one part it is known as a monoline policy.
Commercial Property Conditions Form - Answer Contains numerous conditions in addition to
the conditions contained in the common policy conditions form. Some are in individual
coverage forms and others are attached by endorsement known as Commercial Property
Conditions
Commercial Property Conditions Form (common conditions) - Answer - Concealment,
misrepresentation, or fraud coverage: coverage voided if insured commits fraud relating to
policy
- Control of Property: any act or negligence by persons not under direction of insured will not
void their coverage.
- Insurance under 2 or more coverages: insurer will only pay for actual loss of coverage
regardless if loss is insured under coverage.
- Legal Action Against Insurer: Legal action can be taken against insurer if all policy's terms have
been met and action is brought against them within 3 yrs of loss.
- Liberalization: if insurer accepts to broaden coverage during policy within 45 days prior to
effective date it will apply without endorsement on policy
