The modular concept: how a commercial package is built
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Base = Common Policy Declarations + Common Policy Conditions.
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Coverage part = its own declarations + coverage form(s) + endorsements.
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Only property adds a causes of loss form.
Common conditions: cancellation and changes
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First named insured cancels, pays premium, gets return premium, requests changes.
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CA §676.2(b): after 60 days (renewal: from day one) only listed cancellation grounds.
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Notice: 10 days for nonpayment; 30 days for most other grounds.
Common conditions: audits, inspections, premiums, transfer
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Audit right: during the policy and up to 3 years after, policy-related records only.
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Inspection ≠ safety guarantee; CA §676.2(b)(5) for unmet agreed loss control.
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No transfer without the insurer's written consent (exception: death of an individual named insured).
Package vs. monoline policies
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CPP = one policy with two or more coverage parts.
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Package perks: one policy period, often a premium credit.
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One coverage part alone = monoline policy.