True or False: The name insured must inform the insurance company at once if they begin work in any state listed in item 3.C.

True or False: The name insured must inform the insurance company at once if they begin work in any state listed in item 3.C.

• A. True
• B. False
• C. Not specified
• D. Only if 3.C is amended

Answer: (A)

Prompt disclosure of changes in where the insured operates is essential in many commercial policies. When a policy includes a scheduled list of states (item 3.C), beginning work in any state on that list means the insured must notify the insurer immediately. This allows the insurer to confirm that coverage is appropriate for that jurisdiction, adjust ratings or endorsements if needed, and ensure compliance with state-specific requirements. Notifying at once helps prevent coverage gaps or disputes later if a claim arises from activities in that state. So the statement is true.

Prompt disclosure of changes in where the insured operates is essential in many commercial policies. When a policy includes a scheduled list of states (item 3.C), beginning work in any state on that list means the insured must notify the insurer immediately. This allows the insurer to confirm that coverage is appropriate for that jurisdiction, adjust ratings or endorsements if needed, and ensure compliance with state-specific requirements. Notifying at once helps prevent coverage gaps or disputes later if a claim arises from activities in that state. So the statement is true.