California Commercial Insurance Exam Questions and Answers 100% Correct

The term "Time element Coverage" is used when the amount of loss depends on what? The time it takes to repair, rebuild, or restore damaged property.The term time element coverage is used for many indirect losses, such as a business income loss, because the amount of loss might not be directly related to the amount of property damage that occurred, but it is related to the time it takes to repair,, rebuild, or restore the damaged property. Many factors can influence the ultimate loss, including the availability of supplies and replacement parts. Which is NOT one of the common law defenses against an employer's liability? Proximate causeAssumption of risk, contributory negligence, and the fellow servant rule are the traditional common law defenses against employer liability. Are Vehicles eligible for a Personal Auto Policy PAP if used in a delivery business? No. Vans used in a delivery business are not eligible for coverage.Generally, four-wheel private passenger autos, pickups, and vans owned by an individual or married couple are eligible if used for pleasure or general transportation. Pickups and vans used in a business, other than farming or ranching, are not eligible. Business owners policies provide an additional coverage for preservation of property when it is removed from the premises to protect it from loss by a covered peril. The coverage will apply at other locations for up to? 30 DaysThe preservation of property additional coverage under a BUSINESS OWNERS POLICY covers direct physical loss or damage from an cause if the property has been removed to another location in order to protect it from loss by a covered peril. Coverage applies while the property is being moved and while it is temporarily stored at another location, but only for 30 days after the property is first moved. Which losses are excluded under the physical damage coverage of a personal auto policy? Loss of custom furnishings in a customized van loss caused by freezing of the cooling system Damage to equipment designed for the detection of Radar.Damage to a covered auto while being used as apart of a car pool is not excluded. Under the BUSINESS AUTO COVERAGE PART, liability insurance applies to mobile equipment while it is: Being carried or towed by a covered auto.Although mobile equipment exposures are usually covered by CGL insurance, it is covered by business auto insurance while being carried or towed by a covered auto because in such cases it is considered an extension