Commercial Lines & Coverages

Chapters 8,9,11 of CA P&C License: Chapter 8 - Commercial General Liability (CGL), Chapter 9 - Commercial Auto, Chapter 11 - Businessowners Policy

What is covered under the Legal Liability Coverage Form?

Property in the insured’s care, custody or control

What would be considered a single accident in Equipment Breakdown coverage?

All accidents at a single location, at the same time, by the same cause

In Commercial Inland Marine policies, who transports the property of anyone who hires them?

Common carriers

A liability policy that covers all claims arising out of incidents occurring during the policy period, regardless of whether or not the policy is still in effect at the time of the claim, is known as

An occurrence policy

In Commercial Package Policies (CPPs), who may cancel the policy in writing and make changes to the policy with the consent of the insurer?

First-named insured

Which coverage would a business owner need in a crime policy to cover money that may be stolen from a messenger?

Outside the Premises

What are the 3 liability coverages included in the Commercial General Liability (CGL) Coverage Form?

Coverage A - Bodily Injury and Property Damage, Coverage B - Personal and Advertising Injury, and Coverage C - Medical Payments

What type of property can be covered under Inland Marine insurance?

Any type of property that is portable on land, as well as means of transportation and communication

What is the difference between a personal injury and an advertising injury?

Personal injury refers to individuals; advertising injury is incurred to a business. Both, however, are nonphysical injuries.

Commercial property coverage can be written with one of three causes of loss forms. What are they?

Basic, Broad, and Special

What is the name for policy endorsements that may apply to more than one coverage part?

Interline endorsements

What is the limit that the insurer will pay for all losses that occur during a policy period?

Aggregate limit

What are the 2 coverage triggers in Commercial Crime policies?

Discovery Form and Loss Sustained Form

What are the coverage parts that may be included in a Commercial Package Policy (CPP)?

Commercial property, general liability, crime, equipment breakdown, auto, inland marine, and farm

What is the date stipulated on the declaration page of a claims-made liability form as the earliest date on which an incident may occur and be covered by the policy?

Retroactive date

What is a commercial floater?

An Inland Marine policy designed to cover movable commercial property, wherever it may be located

What does Coverage A of the Commercial General Liability (CGL) form provide coverage for?

Injury or death suffered by a third party, or damage to the property of others

What is the broadest coverage in the Commercial Crime Form?

Theft coverage

When other insurance is written on the same basis as a Commercial Property policy, what is the insurer obligated to cover?

A share of the loss

What type of property would be covered under the Builder’s Risk Coverage Form?

The building, temporary structures, foundations, fixtures, equipment, and materials and supplies within 100 feet of the premises

What components make up a Commercial Policy?

Policy cover; policy declarations; interline endorsements; lines of insurance declaration pages; lines of insurance coverage forms; common policy conditions; lines of insurance conditions; causes of loss forms; and endorsements

What types of expenses are covered by Coverage C - Medical Payments in Commercial General Liability policies?

Medical, surgical, hospital, or funeral expenses for third parties injured because of the insured’s business operations

What is the occurrence form trigger based on?

The date of the injury or damage

What type of perils are covered by the Advertising Injury Form?

Libel, slander, defamation, violation of privacy, infringement of copyright or titles

What type of policy consists of the declarations, conditions, endorsements, and other attachments applicable to a single line of insurance?

Monoline

How are supplementary payments paid in liability insurance policies?

In addition to the limits of liability

What is the purpose of a claims-made form?

To pay for bodily injuries or property damage reported during the policy period

In a commercial crime policy, what does employee theft cover?

Losses resulting from theft by employees

What is the purpose of interline endorsements in Commercial Package Policies (CPPs)?

They eliminate redundancy and minimize the number of other policy endorsements.

What types of entities can be insured under a General Liability policy?

Sole proprietors, partnerships, and corporations

A vehicle rented from a commercial rental company is known as what type of auto?

Hired auto

How does the Auto Medical Payments Coverage endorsement modify the auto policy?

It adds medical payment coverage to a commercial auto policy.

What types of vehicles may be included in the definition of an auto in a commercial auto policy?

A land motor vehicle, trailer or semitrailer designed for use on public roads, and any other land vehicle that is subject to compulsory financial responsibility laws where it is licensed or principally garaged, but NOT mobile equipment.

What coverage is provided in the liability section of the business auto coverage form?

The policy will pay for injury or property damage to third parties

What are the 2 parts of the Garage Liability Coverage?

Garage Operations - Covered Autos, and Garage Operations - Other than Covered Autos

Who does the Garage Coverage form insure?

Auto dealers, service stations, auto repair shops

What is covered by the Trailer Interchange coverage?

Loss or damage to a nonowned trailer in the insured’s care, custody, or control if the insured is legally liable for the damage

What are the coverage forms used in commercial auto insurance?

Business Auto Coverage Form, Business Auto Physical Damage Coverage Form, Garage Coverage Form, and Motor Carrier Coverage Form

What do numerical symbols represent in auto policies?

They define the type of vehicle insured for specific coverages

What type of losses are indicated by the split limits in an auto insurance policy?

Bodily injury per person, bodily injury per accident, and property damage per accident