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.A coverage form such as the Building and Personal Property Coverage Form plus a causes of loss form, with no separate declarations or common policy conditions needed
b.Just the coverage form and the declarations, with no causes of loss form attached
c.Common policy declarations, common policy conditions, commercial property declarations, a coverage form, and a causes of loss form
d.Common policy declarations and common policy conditions only, with no commercial property declarations
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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