Final answer:
A commercial package policy must contain Common Declarations, which provide specific details about the insured, coverage, and limits. Option D is correct.
Step-by-step explanation:
In addition to the common conditions and two or more coverage forms, a commercial package policy (CPP) must contain Common Declarations. Declarations are part of the policy that provide details about the insured entity, what is insured, the coverage provided, and the limits of coverage.
They typically include the name of the insured, their address, the policy period, a description of the property or liability being insured, and the premium amounts for the coverages provided. The CPP allows businesses to combine various lines of insurance into one package.
This flexibility helps businesses customize their insurance according to their specific needs. For instance, a business might choose a combination of Commercial Property Form and Commercial General Liability to ensure comprehensive coverage.
While not a mandatory component, the policy might also include Common Exclusions, which are provisions that specify what events or circumstances are not covered by the policy.