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Risk Management

Business

Quiz 15 :

Multirisk Management Contracts: Business

Quiz 15 :

Multirisk Management Contracts: Business

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Normal operating expenses are those costs associated with the activity of the business, not the materials that may be consumed by the business.
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True False
Answer:

Answer:

True

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In a building and personal property policy, the coinsurance policy can be overridden with an agreed value option.
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True False
Answer:

Answer:

True

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The water damage peril in the broad causes of loss form in an ISO commercial property policy covers floods and similar types of catastrophic water damage.
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True False
Answer:

Answer:

False

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The business income coverage policy protects against business interruption, but not against extra expense losses.
True False
Answer:
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In a building and personal property policy, the basic causes of loss form is an open-perils option of the commercial property policy.
True False
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The commercial general liability policy provides open-perils coverage for the insured's liabilities due to bodily injury or property damage experienced by others.
True False
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An organization with stable earnings and expectations of a short period of restoration would find the maximum period of indemnity option worthwhile.
True False
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The commercial general liability policy replaced the liability coverage previously available through the comprehensive general liability policy.
True False
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In a commercial general liability policy, 'Coverage C' refers to 'Personal and Advertising Injury Liability.'
True False
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The property portion of the business owners program covers both direct and consequential losses.
True False
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In a business owner's policy, seasonal fluctuation permits recovery of lost personal property up to 125 percent of the declared limit, as long as the average value of the personal property over the prior twelve months is not greater than the limit.
True False
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In a commercial general liability policy, claims for injuries that occurred thirty years ago can be covered if coverage is available on a claims-made basis.
True False
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In a commercial general liability policy, the medical payments coverage is intended to provide health insurance to the insured and to any employees of the insured.
True False
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The umbrella policy excludes medical expense coverages.
True False
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The agreed value option does not ensure that the policyholder will have sufficient limits of insurance to cover a total loss, especially in times of high inflation.
True False
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The extended coverages in building and personal property coverage form primarily offer protection for properties included in the definition of covered buildings and personal property.
True False
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If the insured chooses replacement cost new basis of property insurance payment in building and personal property coverage form, then the provision 7 valuation of section E, loss conditions, applies.
True False
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The insurer has the general right to settle any suit against injuries as it deems appropriate.
True False
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Instead of listing those perils that are covered, the special causes of loss form provides protection for all causes of loss not specifically excluded.
True False
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In a commercial general liability policy, the occurrence policy may lessen the insurer's uncertainty about likely future payments because the time lag between premium payments and loss payments generally is smaller with occurrence than with claims-made.
True False
Answer:
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