Study guide
9.1 Commercial Package Policy Structure and Common Policy Conditions
Arkansas Property & Casualty Insurance State
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1 Standalone Coverage Map
Standalone Coverage Map
2 Introduction: Arkansas Property & Casualty Insurance Exam Overview
Arkansas Property & Casualty Exam Overview
3 National Portion: Insurance Fundamentals
1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority
4 National Portion: Property Insurance Concepts
2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses
5 National Portion: Dwelling Policies (DP)
3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage
6 National Portion: Homeowners Policies - Forms & Section I
4.1 Homeowners Forms HO-2 through HO-8 and Eligibility 4.2 Section I Coverages A-D and Additional Coverages 4.3 Section I Perils Insured Against and Exclusions 4.4 Replacement Cost vs. ACV and Loss Settlement in Homeowners
7 National Portion: Homeowners Policies - Section II & Endorsements
5.1 Section II Coverages E (Liability) and F (Medical Payments) 5.2 Homeowners Conditions and Duties After Loss 5.3 Common Homeowners Endorsements (scheduled property, water backup, ordinance or law)
8 National Portion: Personal Auto Policy - Liability & Injury
6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists
9 National Portion: Personal Auto Policy - Physical Damage & Duties
7.1 Part D: Coverage for Damage to Your Auto 7.2 Exclusions and Part E: Duties After an Accident 7.3 Part F: General Provisions, Endorsements, and No-Fault Concepts
10 National Portion: Liability Insurance Concepts
8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury
11 National Portion: Commercial Property Insurance
9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP
12 National Portion: Commercial General Liability - Coverages
10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments
13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions
11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements
14 National Portion: Commercial Auto Insurance
12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements
15 National Portion: Workers Compensation
13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements
16 National Portion: Other Commercial Lines - BOP, Crime & Marine
14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)
17 National Portion: Other Commercial Lines - Specialty & Professional
15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability
18 National Portion: Other Commercial Lines - Surety, Flood & Specialty
16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines
19 National Portion: Insurance Regulation & Market Conduct
17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations
20 National Portion: Ethics & Unfair Trade Practices
18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection
21 Chapter 1: Arkansas P&C Insurance Regulation & Licensing
1.1 Arkansas Insurance Department 1.2 Arkansas P&C Producer Licensing Requirements 1.3 Arkansas Producer Responsibilities
22 Chapter 2: Arkansas Property Insurance
2.1 Arkansas Homeowners Insurance 2.2 Arkansas Commercial Property Insurance
23 Chapter 3: Arkansas Casualty & Auto Insurance
3.1 Arkansas Auto Insurance Requirements 3.2 Arkansas Liability Insurance 3.3 Arkansas Workers' Compensation Insurance
24 Chapter 4: Arkansas Ethics & Professional Conduct
4.1 Ethical Practices and Consumer Protection
9.1 Commercial Package Policy Structure and Common Policy Conditions
Key Takeaways Explain This Topic AI
A CPP combines Common Declarations, Common Policy Conditions, and one or more coverage parts; the Commercial Property part needs a declarations page, a coverage form, and a causes of loss form.
The first Named Insured handles cancellation notice, premiums, and policy changes for the entire package.
Cancellation notice is at least 10 days for nonpayment and 30 days otherwise; the insurer may audit books for up to three years.
Limits and coinsurance live in the Declarations; covered perils live in the Causes of Loss Form; broad rules live in conditions pages.
Last updated: June 2026
How ISO Builds a Commercial Property Policy
Most tested commercial property questions assume the ISO Commercial Package Policy (CPP) architecture. A CPP is a single contract assembled from modular parts, and the exam expects you to know which document supplies which information. Every CPP is built from four building blocks that fit together in a fixed order.
The four required components
- Component What it does Example content
- Common Policy Declarations Identifies the insured Named insured, address, policy period, premium
- Common Policy Conditions Rules for the whole package Cancellation, transfer, examination of books
- One or more Coverage Parts The actual coverages Commercial Property, CGL, Crime, Inland Marine
Coverage forms, causes-of-loss forms, endorsements Build out each part BPP form, Special Cause of Loss, endorsements
A monoline policy has only one coverage part; a package has two or more. Combining lines into a CPP usually earns a package discount and prevents coverage gaps between separate contracts. The Commercial Property Coverage Part itself needs at least three documents: the Commercial Property Declarations, one or more coverage forms (such as the Building and Personal Property Coverage Form), and a Causes of Loss Form.
The Common Policy Conditions (memorize these six)
The Common Policy Conditions (IL 00 17) apply to every coverage part in the package. Examiners love testing the notice periods and who has authority.
Cancellation — The first Named Insured may cancel anytime. The insurer must give written notice: at least 10 days for nonpayment and at least 30 days for any other reason. Notice goes to the first Named Insured only.
Changes — The policy can be changed only by written endorsement issued by the insurer; the first Named Insured is authorized to request changes.
Examination of Your Books and Records — The insurer may audit records up to three years after the policy period.
Inspections and Surveys — The insurer has the right (not the duty) to inspect; an inspection is not a safety guarantee.
Premiums — The first Named Insured is responsible for paying premiums and receives any return premium.
Transfer of Rights and Duties (assignment) — The policy cannot be transferred without the insurer's written consent, except on death of an individual insured.
Note the recurring theme: the first Named Insured is the contact point for cancellation, premiums, and changes. A common trap asks who receives the cancellation notice — it is the first Named Insured, even if other insureds are listed.