Other Commercial Coverages

Chapter: Other Commercial Coverages A contract for the transport of goods between the shipper and the carrier is called A A bill of lading B A bailment C A binder D A bill of sale

A A bill of lading correct! A bill of lading is a contract between the carrier and the shipper detailing the carrier's responsibilities and duties.

Which of the following is NOT covered under accounts receivable coverage form? A Any loans required to offset uncollectible amounts B Interest on loans required to offset uncollectible amount pending payment of the insurance proceeds C Sums due the insured that are uncollectible due to a covered loss D Expenses to reestablish the records, if possible, and collection expenses that are in excess of normal costs

A Any loans required to offset uncollectible amounts correct! Loan principal amounts are not covered under the form. However, other expenses, such as interest on necessary loans, are covered.

Chapter: Other Commercial Coverages Which inland marine coverage condition states that payment of any claim will not reduce the limit of insurance, except in case of a total loss on a scheduled item? A Reinstatement of limit B Legal action against the insurer C Privilege to adjust with the owner D Transfer of rights of recovery

A Reinstatement of limit Correct! The reinstatement of limit condition states that payment of any claim will not reduce the limit of insurance, except in case of a total loss on a scheduled item. In this case the insurer will cancel the specific coverage and refund any unearned premium for the coverage on that item.

For insurance purposes, when an insured loses property to another because the person used violence or threat of violence to gain the property, this is defined as A Robbery. B A theft. C A burglary. D False pretense.

A Robbery. Correct! Robbery coverage requires that the insured property was taken by the use of violence or threat of violence.

Which Inland Marine Form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners? A Vendor's Single Interest Policy B Bailee's Customer Policy C Furriers Block Policy D Personal Property Coverage Part

B Bailee's Customer Policy Correct! A Bailee's Policy does not cover property of the insured, but does cover their customer's property while in the care of the insured.

All of the following are excluded in the equipment breakdown basic policy EXCEPT A Loss of power, lights, heat, steam, or refrigeration. B Explosion of steam boilers. C Ordinance or law coverage. D Business interruption.

B Explosion of steam boilers. Correct! Equipment breakdown coverage covers the sudden and accidental breakdown of the vessel. Business interruption may be added by endorsement.

Which inland marine coverage condition says that an insurer will settle with the actual owners of property involved in a loss? A Legal action against the insurer B Privilege to adjust with the owner C Transfer of rights of recovery D Reinstatement of limit

B Privilege to adjust with the owner Correct! Because inland marine coverages can cover property of others in the insured's care, custody, or control, the privilege to adjust with the owner condition says that the insurer will settle with the actual owners of the property in the event of a loss.

Which inland marine coverage condition says that an insurer will settle with the actual owners of property involved in a loss? A Legal action against the insurer B Privilege to adjust with the owner C Transfer of rights of recovery D Reinstatement of limit

B Privilege to adjust with the owner correct! Because inland marine coverages can cover property of others in the insured's care, custody, or control, the privilege to adjust with the owner condition says that the insurer will settle with the actual owners of the property in the event of a loss.

The type of insurance used to cover goods for one specific trip is called A Motor truck cargo policy. B Trip transit. C Commercial property. D Bailee policy.

B Trip transit. Correct! Trip transit policies cover a single shipment of goods for a specific trip.

Which inland marine coverage condition says that an insurer will settle with the actual owners of property involved in a loss? A Reinstatement of limit B Legal action against the insurer C Privilege to adjust with the owner D Transfer of rights of recovery

C Privilege to adjust with the owner correct! Because inland marine coverages can cover property of others in the insured's care, custody, or control, the privilege to adjust with the owner condition says that the insurer will settle with the actual owners of the property in the event of a loss.

What are common carriers required to issue to every shipper that it transports goods for? A A transit coverage form B A motor truck cargo form C A common carrier cargo liability notice D A uniform bill of lading

D A uniform bill of lading Correct! Common carriers are required to issue a uniform bill of lading to every person (shipper) for which it transports goods.

Which would be considered a single accident in equipment breakdown coverage? A All accidents at all insured locations at same time by same cause B All accidents at same location within a 24-hour period C All accidents at same location within a 48-hour period D All accidents at single location at same time by same cause

D All accidents at single location at same time by same cause Correct! If an accident causes other accidents, all related accidents will be treated as one accident. All accidents occurring at a single location at the same time, and having the same cause, will be considered to be one accident.

Which of the following may be covered by Electronic Data Processing coverage from under an Inland Marine policy? A Computer hardware that is specifically scheduled. B Extra expense the insured incurs to continue the business following a loss. C Data processing media, including magnetic tapes or paper tapes, punch cards and discs D All of these are covered.

D All of these are covered. Correct! All of these are covered items under Electronic Data Processing coverage.

Which of the following is NOT covered under accounts receivable coverage form? A Interest on loans required to offset uncollectible amount pending payment of the insurance proceeds B Sums due the insured that are uncollectible due to a covered loss C Expenses to reestablish the records, if possible, and collection expenses that are in excess of normal costs D Any loans required to offset uncollectible amounts

D Any loans required to offset uncollectible amounts correct! Loan principal amounts are not covered under the form. However, other expenses, such as interest on necessary loans, are covered.

The inland marine coverage form for outdoor signs provides "open peril" coverage and excludes coverage for breakage only during A Transportation. B Repairing. C Installation or dismantling. D Any of the above.

D Any of the above. Correct! The open peril coverage provided under outdoor signs excludes damage done while transporting, repairing, installing, or dismantling the sign.

Individuals in the business of selling construction equipment and mobile equipment should insure with a/an A Contractor's equipment floater. B Installation floater. C PPF. D Equipment dealers coverage form.

D Equipment dealers coverage form. correct! An equipment dealer's coverage form covers dealer's stock in trade consisting primarily of mobile agricultural equipment and construction equipment. It also covers property of others in the dealer's care, custody, or control. It excludes coverage for autos, motorcycles, aircraft, and watercraft.

Under the Commercial Crime coverage part, loss resulting from employee theft is A Always covered. B Always excluded. C Always covered, provided the employee has not been previously responsible for such a loss. D Excluded unless a limit of insurance is shown in the Declarations for Employee Theft coverage.

D Excluded unless a limit of insurance is shown in the Declarations for Employee Theft coverage. correct! Employee Theft covers losses resulting from the theft of covered property by employees. Property covered under this form includes money, securities, and property other than money or securities.

Chapter: Other Commercial Coverages A business using its own trucks to move its own cargo would insure the cargo using A Motor truck cargo - truckers form. B Motor carrier form. C Trip transit coverage. D Motor truck cargo - owners form.

D Motor truck cargo - owners form. Correct! A business using its own trucks to move its own cargo would insure the cargo using the owners form.

Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck? A Motor truck cargo policy - owners form B Trip transit policy C Truckers coverage form D Motor truck cargo policy - truckers form

D Motor truck cargo policy - truckers form Correct! The motor trucker cargo truckers is liability insurance and the owners form is property coverage.

Which inland marine coverage condition states that payment of any claim will not reduce the limit of insurance, except in case of a total loss on a scheduled item? A Legal action against the insurer B Privilege to adjust with the owner C Transfer of rights of recovery D Reinstatement of limit

D Reinstatement of limit correct! The reinstatement of limit condition states that payment of any claim will not reduce the limit of insurance, except in case of a total loss on a scheduled item. In this case the insurer will cancel the specific coverage and refund any unearned premium for the coverage on that item.

Your accounts receivable records have been destroyed or damaged. Your loss may be covered with A Commercial property insurance. B The commercial articles coverage form. C The valuable papers coverage form. D The accounts receivable coverage form.

D The accounts receivable coverage form. Correct! The accounts receivable coverage form reimburses the insured for amounts that can't be collected from customers due to damage to the company's records.

When a regular bill of lading is issued, who will be responsible for the invoice cost of any damaged property? A The person to whom the goods are being shipped B The shipper C The driver of the truck D The carrier

D The carrier correct! When a regular bill of lading is issued, the carrier will be responsible for the invoice cost of any damaged property, and the shipper does not have to specifically declare a value.

A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's building, and $30,000 of expediting expenses, how much will the insured collect under the policy? A $175,000 B $180,000 C $200,000 D $100,000

A $175,000 Correct! The limit of the equipment breakdown policy applies to property of the insured, property of others, and expediting expenses in any combination as long as expediting expense does not exceed $25,000.

Which of the following would be covered under the crime coverage inside the premises - theft of money and securities? A Loss or damage to a locked safe, vault, or cash register B Loss resulting from the surrendering of property in any exchange or purchase C Dishonest acts of employees, directors, trustees or representatives D Accounting or arithmetic errors or omissions

A Loss or damage to a locked safe, vault, or cash register Correct! Inside the premises - theft of money and securities would cover loss or damage to a locked safe, vault, or cash register.

What is not a consideration when paying an inland marine claim? A Market value when the property was first purchased B Cost to replace the property C ACV on date of loss D Cost to repair or restore the property

A Market value when the property was first purchased Correct! Inland marine policies pay ACV, but the insurer reserves the right to repair or replace instead. The value of the insured property when new is not considered.

In which of the following situations would the jewelers block extension cover a loss? A Maurice's Jewelers fixes a necklace and sends it by registered mail to the owner. When the necklace arrives, it has been damaged. B Jeana's Jewelry Concepts is robbed while displaying bracelets and necklaces at a public exhibition. C Diamond Fire Jewelry store agrees to exhibit a necklace and earrings set in a showcase away from the premises. The case is broken into, and the set is stolen. D Julie, an employee of Antique Jewelers, is wearing a cameo brooch and ring set to display to customers. During the day, she discovered the brooch has fallen off, and she can't find it.

A Maurice's Jewelers fixes a necklace and sends it by registered mail to the owner. When the necklace arrives, it has been damaged. correct! Property in transit by registered mail is covered under the jewelers block extension.

ABC Trucking hauls products for Acme, Inc. as a contract carrier. On one shipment, the driver stopped at a truck stop for lunch. Leaving the truck in the parking lot, he made certain that the truck was locked before leaving it. Upon returning to the truck, he discovered that someone had broken into the truck and stolen the cargo. Is ABC legally liable for this loss? A No, the driver had taken reasonable measures to protect the property by locking the truck. B Yes, ABC's liability is absolute for the cargo in its possession. C The truck stop would be liable for the loss. D None of the above.

A No, the driver had taken reasonable measures to protect the property by locking the truck. correct! ABC, as a contract carrier, would not be legally liable for this loss. If ABC were operating as a common carrier rather than a contract carrier, it would have been legally liable.

Robbery is A Taking of property by use of force, violence, or fear. B Taking of property without causing property damage or bodily harm. C Any act of stealing. D Taking of property from within the premises leaving visible signs of forced entry.

A Taking of property by use of force, violence, or fear. Correct! When one's property is taken by another by use of force, violence, or fear, it is robbery.

Equipment breakdown coverage is written with a single limit of insurance per accident. However, what is the sublimit for hazardous substance cleanup, or repair or replacement of contaminated property? A $20,000 B $25,000 C $50,000 D $15,000

B $25,000 correct! Equipment breakdown coverage is written with a single limit of insurance per accident. However, within this limit, the policy has the following sublimits: $25,000 for expediting expenses; $25,000 for hazardous substance cleanup, or repair or replacement of contaminated property; $25,000 for ammonia contamination damage; $25,000 for water damage. Review ContentNext Question

Chapter: Other Commercial Coverages The Employee Theft crime policy coverage includes a coverage extension that applies to employees temporarily outside the coverage territory for up to A 60 days. B 90 days. C 120 days. D 30 days.

B 90 days. correct! The coverage includes a coverage extension that applies to employees temporarily outside the coverage territory for up to 90 days.

A contract for the transport of goods between the shipper and the carrier is called A A bill of sale B A bill of lading C A bailment D A binder

B A bill of lading Correct! A bill of lading is a contract between the carrier and the shipper detailing the carrier's responsibilities and duties.

Professional photographers and musicians may insure their equipment with A An installation floater. B A commercial articles floater. C A theatrical property coverage form. D A contractors equipment floater.

B A commercial articles floater. Correct! The commercial articles form covers photo equipment or musical instruments used commercially, such as by a professional band.

What are common carriers required to issue to every shipper that it transports goods for? A A common carrier cargo liability notice B A uniform bill of lading C A transit coverage form D A motor truck cargo form

B A uniform bill of lading Correct! Common carriers are required to issue a uniform bill of lading to every person (shipper) for which it transports goods.

All of the following are excluded in the equipment breakdown basic policy EXCEPT A Loss of power, lights, heat, steam, or refrigeration. B Explosion of steam boilers. C Ordinance or law coverage. D Business interruption.

B Explosion of steam boilers. correct! Equipment breakdown coverage covers the sudden and accidental breakdown of the vessel. Business interruption may be added by endorsement.

What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy? A $20,000 all expenses incurred during a 12-month period B $5,000 for all expenses incurred during a 12-month period C $10,000 for all expenses incurred during a 12-month period D $15,000 all expenses incurred during a 12-month period

C $10,000 for all expenses incurred during a 12-month period correct! The maximum the insurer will pay under this extension is $10,000 for all expenses incurred during a 12-month period.

A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's building, and $30,000 of expediting expenses, how much will the insured collect under the policy? A $200,000 B $100,000 C $175,000 D $180,000

C $175,000 Correct! The limit of the equipment breakdown policy applies to property of the insured, property of others, and expediting expenses in any combination as long as expediting expense does not exceed $25,000.

Which of the following would be covered under the crime coverage inside the premises - theft of money and securities? A Dishonest acts of employees, directors, trustees or representatives B Accounting or arithmetic errors or omissions C Loss or damage to a locked safe, vault, or cash register D Loss resulting from the surrendering of property in any exchange or purchase

C Loss or damage to a locked safe, vault, or cash register correct! Inside the premises - theft of money and securities would cover loss or damage to a locked safe, vault, or cash register.

A business using its own trucks to move its own cargo would insure the cargo using A Motor carrier form. B Trip transit coverage. C Motor truck cargo - owners form. D Motor truck cargo - truckers form.

C Motor truck cargo - owners form. Correct! A business using its own trucks to move its own cargo would insure the cargo using the owners form.

In addition to the usual notice requirements of insurance policies, if a loss occurs, the insured must A Post a surety bond. B Take a full inventory. C Notify the proper law enforcement agency. D Hire a competent attorney.

C Notify the proper law enforcement agency.

The inland marine coverage form for outdoor signs provides "open peril" coverage and excludes coverage for breakage only during A Transportation. B Repairing. C Installation or dismantling. D Any of the above.

D Any of the above. correct! The open peril coverage provided under outdoor signs excludes damage done while transporting, repairing, installing, or dismantling the sign.

Which Inland Marine Form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners? A Furriers Block Policy B Personal Property Coverage Part C Vendor's Single Interest Policy D Bailee's Customer Policy

D Bailee's Customer Policy correct! A Bailee's Policy does not cover property of the insured, but does cover their customer's property while in the care of the insured.

The crime of forced entry into the premises of another by a person or persons with felonious intent, is defined as a A Breaking and entering. B Theft. C Robbery. D Burglary.

D Burglary. Correct! Insurance policies covering the peril of burglary require that following a loss, there are visible signs of forced entry or exit from the premises.

Chapter: Other Commercial Coverages Which of the following would be covered under the crime coverage inside the premises - theft of money and securities? A Loss resulting from the surrendering of property in any exchange or purchase B Dishonest acts of employees, directors, trustees or representatives C Accounting or arithmetic errors or omissions D Loss or damage to a locked safe, vault, or cash register

D Loss or damage to a locked safe, vault, or cash register correct! Inside the premises - theft of money and securities would cover loss or damage to a locked safe, vault, or cash register.

Chapter: Other Commercial Coverages Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck? A Motor truck cargo policy - owners form B Trip transit policy C Truckers coverage form D Motor truck cargo policy - truckers form

D Motor truck cargo policy - truckers form correct! The motor trucker cargo truckers is liability insurance and the owners form is property coverage.

Chapter: Other Commercial Coverages In addition to the usual notice requirements of insurance policies, if a loss occurs, the insured must A Hire a competent attorney. B Post a surety bond. C Take a full inventory. D Notify the proper law enforcement agency.

D Notify the proper law enforcement agency. Correct! In addition to the usual requirement that apply to all direct payment for loss policies, the insured is required to notify the proper law enforcement agency in the event of a loss.

Which coverage would a business owner need in a crime policy to cover money that may be stolen from a messenger? A Fidelity bond B CGL C Safe burglary D Outside the premises

D Outside the premises Correct! Outside the premises (theft, disappearance, and destruction) coverage covers outside loss of money and securities.

Professional photographers and musicians may insure their equipment with A A commercial articles floater. B A theatrical property coverage form. C A contractors equipment floater. D An installation floater.

A A commercial articles floater. correct! The commercial articles form covers photo equipment or musical instruments used commercially, such as by a professional band.

Under the Commercial Crime coverage part, loss resulting from employee theft is A Excluded unless a limit of insurance is shown in the Declarations for Employee Theft coverage. B Always covered. C Always excluded. D Always covered, provided the employee has not been previously responsible for such a loss.

A Excluded unless a limit of insurance is shown in the Declarations for Employee Theft coverage. Correct! Employee Theft covers losses resulting from the theft of covered property by employees. Property covered under this form includes money, securities, and property other than money or securities.

Chapter: Other Commercial Coverages Under the Commercial Crime coverage part, loss resulting from employee theft is A Excluded unless a limit of insurance is shown in the Declarations for Employee Theft coverage. B Always covered. C Always excluded. D Always covered, provided the employee has not been previously responsible for such a loss.

A Excluded unless a limit of insurance is shown in the Declarations for Employee Theft coverage. correct! Employee Theft covers losses resulting from the theft of covered property by employees. Property covered under this form includes money, securities, and property other than money or securities.

The major portion of the premium for an equipment breakdown policy pays A For inspections and examinations. B Repair to prevent. C Coverage for BI & PD of others. D For replacement parts.

A For inspections and examinations. correct! Inspecting the machinery to be insured is critical to the underwriting of equipment breakdown coverage. Finding flaws that could lead to losses and requiring corrective action is the purpose.

ABC Trucking hauls products for Acme, Inc. as a contract carrier. On one shipment, the driver stopped at a truck stop for lunch. Leaving the truck in the parking lot, he made certain that the truck was locked before leaving it. Upon returning to the truck, he discovered that someone had broken into the truck and stolen the cargo. Is ABC legally liable for this loss? A No, the driver had taken reasonable measures to protect the property by locking the truck. B Yes, ABC's liability is absolute for the cargo in its possession. C The truck stop would be liable for the loss. D None of the above.

A No, the driver had taken reasonable measures to protect the property by locking the truck. Correct! ABC, as a contract carrier, would not be legally liable for this loss. If ABC were operating as a common carrier rather than a contract carrier, it would have been legally liable.

Question 5 of 12 Chapter: Other Commercial Coverages Robbery is A Taking of property by use of force, violence, or fear. B Taking of property without causing property damage or bodily harm. C Any act of stealing. D Taking of property from within the premises leaving visible signs of forced entry.

A Taking of property by use of force, violence, or fear. Correct! When one's property is taken by another by use of force, violence, or fear, it is robbery.

A Taking of property from within the premises leaving visible signs of forced entry. B Taking of property from the care of a person in a violent act. C Any act of stealing. D Taking of property by use of force, violence, or fear.

A Taking of property from within the premises leaving visible signs of forced entry. Correct! Signs of forced entry or exit to closed premises must be present for burglary coverage to apply.

Which would be considered a single accident in equipment breakdown coverage? A All accidents at same location within a 48-hour period B All accidents at single location at same time by same cause C All accidents at all insured locations at same time by same cause D All accidents at same location within a 24-hour period

B All accidents at single location at same time by same cause correct! If an accident causes other accidents, all related accidents will be treated as one accident. All accidents occurring at a single location at the same time, and having the same cause, will be considered to be one accident.

An installation floater is used to insure A Dams, power plants, water plants, and other such installations. B Appliances intended to become a permanent part of the building. C Buildings under construction. D All types of for-sale merchandise.

B Appliances intended to become a permanent part of the building. correct! The installation floater covers the interest of the owner, seller, or contractor of refrigeration systems, elevators, or other pieces of large equipment intended to be a permanent part of the building on location awaiting or in the process of being installed or tested.

A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's building, and $30,000 of expediting expenses, how much will the insured collect under the policy? A $200,000 B $100,000 C $175,000 D $180,000

C $175,000 correct! The limit of the equipment breakdown policy applies to property of the insured, property of others, and expediting expenses in any combination as long as expediting expense does not exceed $25,000.

Under a Commercial Crime Coverage Part, following a covered loss, the insured must submit a written proof of loss within A 60 days. B 90 days. C 120 days. D One year.

C 120 days. Correct! In the Common Conditions of a commercial crime coverage part, in the event of a loss, a written proof of loss must be submitted to the insurer within 120 days of request.

Under a Commercial Crime Coverage Part, following a covered loss, the insured must submit a written proof of loss within A 60 days. B 90 days. C 120 days. D One year.

C 120 days. correct! In the Common Conditions of a commercial crime coverage part, in the event of a loss, a written proof of loss must be submitted to the insurer within 120 days of request.

Which would be considered a single accident in equipment breakdown coverage? A All accidents at same location within a 24-hour period B All accidents at same location within a 48-hour period C All accidents at single location at same time by same cause D All accidents at all insured locations at same time by same cause

C All accidents at single location at same time by same cause correct! If an accident causes other accidents, all related accidents will be treated as one accident. All accidents occurring at a single location at the same time, and having the same cause, will be considered to be one accident.

Which coverage form would provide coverage for all incoming and outgoing shipments? A Motor truck cargo B Mail coverage C Annual transit D Trip transit

C Annual transit correct! Annual transit policies provide coverage for a shipper's or receiver's incoming and outgoing shipments during the year.

An individual's construction company leaves mobile equipment and construction machinery on the job site until the project is completed. What could this individual use to insure it? A Builders risk form B General property form C Contractors equipment floater D Bailee customers form

C Contractors equipment floater Correct! The contractors equipment floater covers equipment left unattended on a job site until the project is finished.

A unique feature in a bailee form is that it covers A All loss and has no exclusions. B The building occupied by the insured whether it is owned or leased. C Customer's property whether or not the insured has been negligent. D Fire and theft losses to the insured's stock held for sale without any deductibles.

C Customer's property whether or not the insured has been negligent. Correct! The bailee/customers form is liability coverage for the customer's property the bailee has accepted into his care. Negligence on the part of the bailee is not required for a loss to be covered.

Which coverage applies to losses caused by larceny, embezzlement, misappropriation, wrongful abstraction and other acts of theft by an employee? A Inside the Premises - Theft of Money and Securities B Inside the Premises - Robbery or Safe Burglary of Other Property C Employee Theft D Forgery or Alteration

C Employee Theft Correct! Employee Theft applies to losses caused by theft or forgery. The policy defines theft as the unlawful taking of money, securities, or other property. This would include the acts of larceny, embezzlement, misappropriation, wrongful abstraction, and other dishonest acts.

Chapter: Other Commercial Coverages Individuals in the business of selling construction equipment and mobile equipment should insure with a/an A Installation floater. B PPF. C Equipment dealers coverage form. D Contractor's equipment floater.

C Equipment dealers coverage form. correct! An equipment dealer's coverage form covers dealer's stock in trade consisting primarily of mobile agricultural equipment and construction equipment. It also covers property of others in the dealer's care, custody, or control. It excludes coverage for autos, motorcycles, aircraft, and watercraft.

A business using its own trucks to move its own cargo would insure the cargo using A Motor carrier form. B Trip transit coverage. C Motor truck cargo - owners form. D Motor truck cargo - truckers form.

C Motor truck cargo - owners form. correct! A business using its own trucks to move its own cargo would insure the cargo using the owners form.

Which coverage would a business owner need in a crime policy to cover money that may be stolen from a messenger? A CGL B Safe burglary C Outside the premises D Fidelity bond

C Outside the premises correct! Outside the premises (theft, disappearance, and destruction) coverage covers outside loss of money and securities.

A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's building, and $30,000 of expediting expenses, how much will the insured collect under the policy? A $180,000 B $200,000 C $100,000 D $175,000

D $175,000 correct! The limit of the equipment breakdown policy applies to property of the insured, property of others, and expediting expenses in any combination as long as expediting expense does not exceed $25,000.

The Employee Theft crime policy coverage includes a coverage extension that applies to employees temporarily outside the coverage territory for up to A 120 days. B 30 days. C 60 days. D 90 days.

D 90 days. Correct! The coverage includes a coverage extension that applies to employees temporarily outside the coverage territory for up to 90 days.

Professional photographers and musicians may insure their equipment with A A theatrical property coverage form. B A contractors equipment floater. C An installation floater. D A commercial articles floater.

D A commercial articles floater. Correct! The commercial articles form covers photo equipment or musical instruments used commercially, such as by a professional band.

Professional photographers and musicians may insure their equipment with A A theatrical property coverage form. B A contractors equipment floater. C An installation floater. D A commercial articles floater.

D A commercial articles floater. correct! The commercial articles form covers photo equipment or musical instruments used commercially, such as by a professional band.

Which of the following Commercial Crime coverages would cover a loss resulting from theft of the company's money and securities from the armored vehicle making a delivery? A Forgery or alteration B Robbery and safe burglary C Inside the premises D Outside the premises

D Outside the premises Correct! Outside the premises (theft, disappearance, and destruction) provides coverage for a company's money and securities for outside loss.

Chapter: Other Commercial Coverages Which coverage would a business owner need in a crime policy to cover money that may be stolen from a messenger? A Fidelity bond B CGL C Safe burglary D Outside the premises

D Outside the premises correct! Outside the premises (theft, disappearance, and destruction) coverage covers outside loss of money and securities.