AIC 304 – (ADDRESSING
FINANCIAL IMPACTS OF LOSS)
EXAM QUESTIONS AND THEIR
VERIFIED SOLUTIONS
Is business income and extra expense coverage
covered under separate limits?
No. They are subject to a single limit that is the most an
insurer will pay for a loss under any one occurrence
What are 7 considerations when determining if there
is coverage for a business income and extra expense
loss.
1. named insured and insurable interest in damaged
property
2. direct loss occurrence during policy period
3. meets coverage requirements. business income loss
must occur because of a necessary cessation or
slowdown of the insured's operations during the period of
restoration
4.Extra expenses are documented by the insured for the
amounts incurred and must be shown as covered extra
expenses in the insuring agreement
5.Additional coverage / coverage extension: civil authority,
alterations/new buildings, extended business income,
interruption of computer operations
6:Policy conditions met: Appraisal, Duties in the event of
, loss, loss determination, co-insurance condition
7: Optional coverage and endorsements
What is the duration of the period of restoration?
72 hrs after physical loss occurs until the property is (or
should have been) restored, within a reasonable
timeframe.
What does the supplemental insuring agreement for
civil authority cover?
Covers business income loss and/or extra expenses
incurred due to actions by civil authority which makes the
described property inaccessible to the insured when
property at a location within one mile of the described
premises is damaged by a covered cause of loss. Time
frame is limited.
What does the supplemental insuring agreement for
Alterations and New Buildings provide?
Extends business income and extra expense coverage to
new buildings or structures, alterations, or additions at the
described location.
What does the supplemental insuring agreement for
Extended Extra Expenses cover?
business income loss occurring for up to 60 days after the
damaged property has been repaired and operations have
resumed, but not beyond the date that the insured could
have restored its business income to the amount that
would have been earned if no direct physical loss had
occurred.
What does the supplemental insuring agreement for
Interruption of Computer Operations cover?
FINANCIAL IMPACTS OF LOSS)
EXAM QUESTIONS AND THEIR
VERIFIED SOLUTIONS
Is business income and extra expense coverage
covered under separate limits?
No. They are subject to a single limit that is the most an
insurer will pay for a loss under any one occurrence
What are 7 considerations when determining if there
is coverage for a business income and extra expense
loss.
1. named insured and insurable interest in damaged
property
2. direct loss occurrence during policy period
3. meets coverage requirements. business income loss
must occur because of a necessary cessation or
slowdown of the insured's operations during the period of
restoration
4.Extra expenses are documented by the insured for the
amounts incurred and must be shown as covered extra
expenses in the insuring agreement
5.Additional coverage / coverage extension: civil authority,
alterations/new buildings, extended business income,
interruption of computer operations
6:Policy conditions met: Appraisal, Duties in the event of
, loss, loss determination, co-insurance condition
7: Optional coverage and endorsements
What is the duration of the period of restoration?
72 hrs after physical loss occurs until the property is (or
should have been) restored, within a reasonable
timeframe.
What does the supplemental insuring agreement for
civil authority cover?
Covers business income loss and/or extra expenses
incurred due to actions by civil authority which makes the
described property inaccessible to the insured when
property at a location within one mile of the described
premises is damaged by a covered cause of loss. Time
frame is limited.
What does the supplemental insuring agreement for
Alterations and New Buildings provide?
Extends business income and extra expense coverage to
new buildings or structures, alterations, or additions at the
described location.
What does the supplemental insuring agreement for
Extended Extra Expenses cover?
business income loss occurring for up to 60 days after the
damaged property has been repaired and operations have
resumed, but not beyond the date that the insured could
have restored its business income to the amount that
would have been earned if no direct physical loss had
occurred.
What does the supplemental insuring agreement for
Interruption of Computer Operations cover?
