Unit 9 Quiz

Question 1

The primary purpose of the business income coverage forms is to reimburse the insured for…

Answer 1

… loss of income resulting from property damage at the insured’s property.

Question 2

Which of the following losses to covered equipment would be covered under the equipment breakdown protection coverage form?

Answer 2

Damage from an explosion caused by the centrifugal force of moving parts.

Question 3

The extra expense coverage form provides…

Answer 3

… coverage that will permit the insured to continue in business without interruption following a property damage loss.

Question 4

Under the commercial package policy, who may cancel the policy in writing and make changes to the policy with the consent of the insurer?

Answer 4

First named insured.

Question 5

Which of the following would be covered under the building coverage of the building and personal property coverage form?

Answer 5

Fixtures.

Question 6

Under the commercial property coverage part, the Cause of Loss–Broad Form insures against…

Answer 6

… the perils in the Cause of Loss–Basic Form and additional perils (i.e. BIG AFFECT)

Question 7

Which commercial property coverage form coverts damage to the property of others in the insured’s care, custody, or control when a fee is exchanged.

Answer 7

It is always excluded.

WHY?

CPPs don’t cover bailee losses.