Commercial Package Policy

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Commercial Package Policy Common Policy Conditions

Changes

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The policy has all agreements between the first named insured and the insurer concerning the insurance. Changes in the terms of the policy can only be made by the first named insured with the insurer's consent. The policy's terms can be amended or waived only by the insurer and made a part of the policy.

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Commercial Package Policy Common Policy Conditions

Examination of your books and records

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The insurer may examine and audit the insured's books and records relating to the policy any time during up to three years after the policy period.

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Commercial Package Policy Common Policy Conditions

Inspections and surveys

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The insurer or a rating service may make inspections and surveys relating to insurability and premiums at any time and give the insured reports on conditions and recommend changes. These inspections and surveys are not safety inspections, so neither the insurer nor the service will warrant that conditions are safe, healthful or in compliance with any laws, regulations, codes or standards.

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Commercial Package Policy Common Policy Conditions

Premiums

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The first named insured is responsible for premium payments and is the payee for any return premiums.

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Commercial Package Policy Common Policy Conditions

Transfer or your rights and duties under this policy

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This is the assignment clause. Generally, the named insured's policy rights and duties may not be transferred without the insurer's written consent. However, if an individual named insured dies, those rights and duties will transfer to anyone having proper temporary custody of the named insured's property (with respect to that property) until a legal representative is appointed and then to the legal representative while acting within the scope of duties as a legal representative.

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Commercial Package Policy Common Policy Conditions

Cancellation

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Procedures for cancellation of the policy by the insured or insurer are described, but are modified by and endorsement so they comply with state statues.

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Interline endorsements

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Endorsements that may apply to a number of lines of insurance

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Washington Changes

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Cancellation and Nonrenewal Endorsement changes the cancellation condition in all of the coverage parts to bring them into compliance with the Washing state law

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Monoline Policy

Back 9

When only one coverage part is selected

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Multiline Policy

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When more then one coverage part is selected

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Commercial Property Coverage Part

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Provides coverage for for Commercial buildings and business personal property, such as inventory, fixtures, furniture, equipment and machinery.

The Commercial Property Coverage Part Includes:

• a commercial property declaration form

• a commercial property condition form

• one or more coverage forms (building and personal property, glass, builder’s risk, business income, extra expense, Condominium, Association, Condominium Commercial Unit, Leasehold Interest, or Legal Liability)

• one or two causes of loss forms (basic, broad, special, or earthquake)

• any endorsements selected.

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Commercial Property Declarations

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• effective date of coverage.

• name and address of the named insured.

• type of construction and use of each insured premises.

• coverage form or forms for each insured premises.

• limits of insurance for each form.

• causes of loss form selected for each coverage form.

• coinsurance required.

• premium rates.

• optional coverages selected.

• name and address of mortgage holders (lenders).

• deductible.

• forms used (identified by form number).

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Commercial Property Conditions Form

Concealment, misrepresentation or fraud

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Coverage is void if the named insured commits fraud or intentionally conceals or misrepresents a material of fact concerning the coverage, the covered property, or his interest in the covered property.

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Commercial Property Conditions Form

Control of property

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Acts or neglect of someone other than the insured who is beyond the insured's direction or control will not affect the insurance. Violation of a condition of coverage will cause loss or damage at any involved location to not be covered but will not affect coverage at other locations.

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Commercial Property Conditions Form

Insurance under two or more coverages

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The insurer will not pay more than the actual amount of loss or damage when two or more of the policy's coverages apply to the same loss of damage.

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Commercial Property Conditions Form

Legal action

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A person can sue the insurer only if he has fully complied with all terms of coverage and brings suit within two years after the date of the direct physical loss or damage.

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Commercial Property Conditions Form

Liberalization

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If the insurer adopts any revision that would broaden coverage without and additional premium during the policy period, this broadened coverage will immediately apply.

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Commercial Property Conditions Form

No benefit to bailee

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Other than the insured, no one having custody of covered property will benefit from this insurance.

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Commercial Property Conditions Form

Other insurance

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If the insured has other insurance subject to the same plan, terms, conditions and provisions as this insurance, the insurer will prorate the loss or damage based on the proportion its limit of insurance covering the loss bears to the total of all limits covering the loss on the same basis. If the insured has any other type of insurance covering the same loss or damage, this insurance is excess and covers only the amount of the covered loss or damage above the amount due from the other insurance, up to the applicable limit of insurance.

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Commercial Property Conditions Form

Policy period, coverage territory

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Only loss or damage starting during the policy period and withing the coverage territory (U.S., Puerto Rico and Canada) is covered.

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Commercial Property Conditions Form

Transfer of rights of recovery against others to us (subrogation clause)

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Any rights to recover damages from another, held by a person to or for whom the insurer has paid a claim, are transfered to the insurer to extent of its payments. That person must do everything necessary to secure the insurer's rights and do nothing after the loss to impair them. A named insured may waive rights against another party in writing; or

• prior to a loss to covered property or to covered income; or

• after a loss only if, at the time of loss that party is:

• his tenant.

• someone insured by this policy.

• a business firm owned and controlled by the named insured or that owns and controls the named insured.