Self-contained policy is a single document that contains all the agreements between the insurer and the insured that forms a complete policy by itself.
Endorsement
An Endorsement is a document that amends an insurance policy in some way. Endorsements might add or delete coverage, include state specific changes, show a change in the insured’s exposures or otherwise modify the policy.
Modular Policies
A Modular Policy consists of several different documents, none of which by itself form a complete contract. Commercial Package Policies are examples of Modular Policy.
In case of personal auto policy, which contains four coverages in one form, a CPP combines different forms depending on the coverages, a particular insured purchases. All CPPs must contain common policy declarations and common policy conditions. The CPP declarations contains information that applies to the entire policy such as name and address of the insured, the policy period and the coverages on which the premium has
been paid. The common policy conditions are standard provisions that apply to all CPPs regardless of the coverage included.
For example, if a business owner wanted to purchase property and liability insurance, the CPP would include the following documents: -
· Common policy declarations
· Common policy conditions
· Common property declarations
· One or more commercial property coverage forms
· Commercial property conditions
· One or more cause of loss forms
· Commercial general liability declarations
· Commercial general liability coverage form
Insurance Contracts, Loss Exposures and Risk Management
