Florida 6 – 20 All Lines
Adjuster TEST Q & A
(LATEST 2023 / 2024)
The Equipment Breakdown policy is designed to cover equipment __ the
insured.
A. Owned by
B. Leased to
C. Operated by
D. All of the above
Answer:
D. All of the above
If an initial “accident” to a boiler causes three other boilers to have accidents,
under the
insurance policy, all four events will be considered:
A. One event.
B. Two events.
C. Three events.
D. Four events.
Answer:
A. One event.
An “accident” under an Equipment Breakdown policy includes:
A. Sudden breakdown of an object.
B. Gradual breakdown of an object.
C. Leakage of a valve.
D. All of the above.
Answer:
A. 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:
A. $5,000.
B. $10,000.
C. $25,000.
D. The policy limits.
Answer:
C. $25,000.
The purpose of Equipment Breakdown insurance is:
A. To fill the gaps left by property insurance policies.
B. To cover the maintenance of boilers and machinery
C. To cover damage done to boilers and machinery only
D. To cover the explosions of boilers in non-owned buildings that may cause
damage the
insured’s property.
Answer:
A. 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?
A. Replacement coverage
B. Expediting expenses
C. Extra expense coverage
D. Loss of income coverage
Answer:
A. Replacement coverage
If a boiler explodes and damages a building, contents and property of others,
what coverage
would apply?
A. Only the damage to the boiler is covered.
B. Only the building coverage is provided.
C. Only the insured’s contents are covered.
D. If proper limits are in place the entire loss is covered.
Answer:
D. If proper limits are in place the entire loss is covered.
Automatic coverage is provided for newly acquired equipment for:
A. 30 days
B. 60 days
C. 90 days
D. 120 days
Answer:
C. 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. A 30 day grace period is provided until repairs are made after the coverage is
suspended
B. Coverage is suspended until repairs are made
C. The entire facility must be shut down until repairs are made
D. The company will cancel the entire insurance applicable to all property
insured
Answer:
B. Coverage is suspended until repairs are made
The term “undamaged stock” in Equipment Breakdown coverage refers to:
A. The fact that the insurer is not liable for any damage to the stock
B. The salvage value of the stock
C. The reduction in the value of the stock
D. Losses that are not adjusted on a replacement cost basis
Answer:
C. The reduction in the value of the stock
The BOP is designed to cover all of the following, except:
A. Gas stations.
B. Small apartment houses.
C. Medium size clothing stores.
D. An office complex with 7,500 square feet in total floor area.
Answer:
A. Gas stations.
All of the following are exclusions under the standard BOP form, except:
A. Governmental action.
B. Building ordinance
C. Earth movement.
D. Transportation.