Florida Insurance Licensing Practice Exam

What is it called when both commercial property and liability are combined into one policy?

1. A Package Policy

2. A bundled cover

3. A comprehensive policy

4. A unified policy

The correct answer is: A Package Policy

A Package Policy, also known as a Commercial Package Policy, is a type of insurance policy that combines different types of coverage into one policy. It is commonly offered to businesses, particularly small and medium-sized businesses, to provide protection for both property damage and liability claims. It is not a bundled cover, as this term typically refers to a service or product that combines multiple items or services for a discounted price. A comprehensive policy can also refer to a package policy, but it is a more general term that can be applied to other types of insurance as well. A unified policy is not a commonly used term in insurance and is not specifically associated with combining property and liability coverage.