Commercial PropertyQuestion 95 of 215
A commercial property policy is built from several standardized components. Which of the following is the MINIMUM combination of forms required to create a complete commercial property coverage part?
a.Just the coverage form and the declarations
b.Common policy declarations and common policy conditions only
c.Common policy declarations, common policy conditions, commercial property declarations, a coverage form, and a causes of loss form
d.A coverage form and a causes of loss form, with no separate declarations needed
Explanation
The commercial property coverage part is modular: it requires the common policy declarations, the common policy conditions, a commercial property declarations page, at least one coverage form (such as the Building and Personal Property Coverage Form), and a causes of loss form (Basic, Broad, or Special). Removing any of these breaks the coverage part.
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Related questions on this topic
- A commercial insured wants the broadest causes-of-loss form available so coverage applies to any direct physical loss that is not specifically excluded. Which causes-of-loss form should the producer recommend?
- Which of the following perils is covered under the Basic causes-of-loss form but is NOT one that an insured can rely on the Broad form to add?
- Under the Building and Personal Property Coverage Form (CP 00 10), which of the following is NOT included automatically in the definition of Building coverage when the insured shows a value for the building?
- A dry cleaner has customer garments on the premises waiting to be picked up. Which coverage category under CP 00 10 most accurately responds to direct physical damage to these garments?
- A commercial building with a replacement value of $1,000,000 carries an 80% coinsurance clause. The insured purchased only $600,000 of coverage. A covered fire causes a $200,000 loss. Ignoring the deductible, how much will the insurer pay?
- An insured selects the Agreed Value optional coverage on a commercial property policy. What is the primary effect of this option?
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