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Flashcards in TB - Equipment Breakdown Coverage Deck (10)
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The Equipment Breakdown policy is designed to cover equipment __________ the insured.


Owned by

Leased to

Operations by

All of the above

All of the above

1

If an initial "accident" to a boiler causes three other boilers to have accidents, under the insurance policy, all four events will be considered:


One event

Two events

Three events

Four events

One event

2

An "accident" under an Equipment Breakdown policy includes:


Sudden breakdown of an object

Gradual breakdown of an object

Leakage of a valve

All of the above

Sudden breakdown of an object

3

The maximum amount of coverage provided for spoilage to covered property caused by contamination under an Equipment Breakdown policy is:


$5,000

$10,000

$25,000

The policy limits

$25,000

4

The purpose of Equipment Breakdown insurance is:


To fill the gaps left by property insurance policies

To cover the maintenance of boilers and machinery

To cover damage done to boilers and machinery only

To cover the explosions of boilers in non-owned buildings that may cause damage the insured's property

To fill the gaps left by property insurance policies

5

The insured has suffered a boiler explosion and desperately needs a replacement as soon as possible. What coverage would respond to assist the insured?


Replacement coverage

Expediting expenses

Extra expense coverage

Loss of income coverage

Expediting expenses

6

If a boiler explodes and damages a building, contents and property of others, what coverage would apply?


Only the damage to the boiler is covered

Only the building coverage is provided

Only the insured's contents are covered

If proper limits are in place the entire loss is covered

If proper limits are in place the entire loss is covered

7

Automatic coverage is provided for newly acquired equipment for:


30 days

60 days

90 days

120 days

90 days

8

A steam boiler has been inspected and found to be in serious need of repairs. The inspector "red-tags" the item. This means:


A 30 day grace period is provided until repairs are made after the coverage is suspended

Coverage is suspended until repairs are made

The entire facility must be shut down until repairs are made

The company will cancel the entire insurance applicable to all property insured

Coverage is suspended until repairs are made

9

The term "undamaged stock" in Equipment Breakdown coverage refers to:


The fact that the insurer is not liable for any damage to the stock

The salvage value of the stock

The reduction in the value of the stock

Losses that are not adjusted on a replacement cost basis

The reduction in the value of the stock