In an ISO Businessowners Policy, which section contains common policy conditions?

• A. Section 1 - Property
• B. Section 2 - Liability
• C. Section 3 - Common Policy Conditions
• D. Section 4 - Endorsements

Answer: (C)

Common policy conditions are the rules that apply to the entire policy, not to any one coverage part. In an ISO Businessowners Policy, these general terms are gathered in a section specifically labeled Common Policy Conditions. This section covers duties after a loss, cancellation and nonrenewal rights, premium and duties related to payment, how changes are handled, subrogation, transfer of rights of recovery, and other broad terms that affect the whole policy.

Because property coverage is handled in Section I and liability coverage in Section II, with endorsements making adjustments or additions, the general conditions that govern the policy as a whole sit in the common policy conditions section. That’s why this section is the best and correct choice.