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Commercial Package Policy (CPP).
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Commercial Package Policy (CPP).
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Commercial Package Policy (CPP)Bailee vs Bailor - ANS-Bailee: Someone who *receives* the property.
Bailor: The party of *owns* the property
Basic Causes of Loss Form - ANS-Covered Named Perils: Fire, Lightning, Extended
Coverage Endorsement/ECE(WHARVVES), vandalism, sprinkler leakage, sinkhole
collapse, volcanic actions.
*Volcanic Actions*=Loss caused by lava, ash or airborne shock waves. Land shock
waves caused by *Volcanic eruption* is *not covered*
*Exclusions*: War, flood, loss by Ordinance or Law, earth movement(other than sinkhole
collapse), nuclear radiation or reaction
Broad Causes of Loss Form - ANS-Covers all perils listed in Basic Causes of Loss
Form *Plus* four additional coverages:
Glass breakage(limited to $100 per pane and $500 per occurrence.), falling objects,
weight of ice, sleet or snow, water damage other than flood.
Builder's Risk form (Commercial Property Insurance Policy, CPP) - ANS-For companies
that builds commercial structures.
Coverage increases over time because when building a commercial structure, it's not
going to be fully completed until some time.
*Claims are paid on ACV value, Replacement cost is not available for this form*
*Builders Risk Form Coverage automatically gets terminated whenever the insured's
builders interest ceases, when the property is sold, or 90 days after construction is
completed*, because this form is for commercial buildings under construction.
Business Income Coverage Form/Business Interruption (Commercial Property
insurance policy) - ANS-*Endorsement form that provides coverage for indirect losses.*
This is utilized if the business must *shut down* due to covered loss, and if business
shuts down then they will lose business income. This endorsement will cover that
income loss.
*no deductible*
*Only losses incurred during the Period of Restoration is covered*
, This Endorsement pays the *net profit before Taxes PLUS continuing operating
expenses*
*Contingent Business Interruption insurance (Business income from Dependent
Properties)* is also covered under this endorsement.
It covers losses of income incurred by a loss on a Dependent Property that the insured
needs in order to stay in business. The coverage applies until the Dependent property is
rebuilt.
Cancellation Changes (CPP) - ANS-For *Nonpayment of Premium*, the insurer must
give *10 days* advanced notice. If the reason for cancel is anything else, the notice
should be given even earlier.
Most Commercial Property Coverage forms also contain *Cancellation Changes
Endorsement*, which allows the insurer to cancel a policy with *5 days* notice for
certain reasons such as *vacancy or occupancy for more than 60 days, unsafe
premises, failure to repair a covered loss within 30 days, or outstanding tax liens against
the property*
Causes of Loss Form - ANS-*Basic*- Named Peril
*Broad* - Named Peril
*Special* - All Risk
Causes of Loss Forms - ANS-Perils covered here are very similar to DP-1, DP-2, DP-3
*Basic*-Named Peril
*Broad*-Named
*Special*-A/R
*Earthquake*
Commercial Building and Personal Property Form (Commercial Property insurance
policy; CPP) - ANS-*Coverage A*: Covers buildings + Permanently installed equipment
(like air conditioning) + Personal property used to maintain or service the building (like
fire extinguisher) + Built in Appliances
*Coverage B*: Covers business personal property + Business Personal Property Within
100 feet of the described premises.
*Coverage C*: Personal Property of others that was left in insured's care, custody or
control.
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