Commercial Chp 3

Question 1

Buisness income insurance

Answer 1

Insurance that covers the reduction in an organization’s income when operations are interrupted by damage to property caused by a covered peril.

Question 2

Net income

Answer 2

The difference between revenues (such as money recieved for goods or services) and expenses (such as money paid for merchandise, rent, and insurance).

Question 3

Profit

Answer 3

Net income that results when revenues exceed expenses.

Question 4

Net loss

Answer 4

Net income that results when expenses exceed revenues.

Question 5

Continuing expenses

Answer 5

Expenses that continue to be incurred during a buisness interruption.

Question 6

Noncontinuing expenses

Answer 6

Expenses that will not continue durring business interruption.

Question 7

Extra expenses

Answer 7

Expenses, in addition to ordinary exenses, that an organization incurs to mitigate the effects of a business interruption.

Question 8

Probable maximum loss (PML)

Answer 8

The largest loss that an insured is likely to sustain.