TB - Equipment Breakdown Coverage Flashcards
If an initial “accident” to a boiler causes three other boilers to have accidents, under the insurance policy, all four events will be considered:
One event
Two events
Three events
Four events
One event
The Equipment Breakdown policy is designed to cover equipment __________ the insured.
Owned by
Leased to
Operations by
All of the above
All of the above
An “accident” under an Equipment Breakdown policy includes:
Sudden breakdown of an object
Gradual breakdown of an object
Leakage of a valve
All of the above
Sudden breakdown of an object
The maximum amount of coverage provided for spoilage to covered property caused by contamination under an Equipment Breakdown policy is:
$5,000
$10,000
$25,000
The policy limits
$25,000
The purpose of Equipment Breakdown insurance is:
To fill the gaps left by property insurance policies
To cover the maintenance of boilers and machinery
To cover damage done to boilers and machinery only
To cover the explosions of boilers in non-owned buildings that may cause damage the insured’s property
To fill the gaps left by property insurance policies
The insured has suffered a boiler explosion and desperately needs a replacement as soon as possible. What coverage would respond to assist the insured?
Replacement coverage
Expediting expenses
Extra expense coverage
Loss of income coverage
Expediting expenses
If a boiler explodes and damages a building, contents and property of others, what coverage would apply?
Only the damage to the boiler is covered
Only the building coverage is provided
Only the insured’s contents are covered
If proper limits are in place the entire loss is covered
If proper limits are in place the entire loss is covered
Automatic coverage is provided for newly acquired equipment for:
30 days
60 days
90 days
120 days
90 days
A steam boiler has been inspected and found to be in serious need of repairs. The inspector “red-tags” the item. This means:
A 30 day grace period is provided until repairs are made after the coverage is suspended
Coverage is suspended until repairs are made
The entire facility must be shut down until repairs are made
The company will cancel the entire insurance applicable to all property insured
Coverage is suspended until repairs are made
The term “undamaged stock” in Equipment Breakdown coverage refers to:
The fact that the insurer is not liable for any damage to the stock
The salvage value of the stock
The reduction in the value of the stock
Losses that are not adjusted on a replacement cost basis
The reduction in the value of the stock
