DC Property Insurance 2

Question 1

What does 'extra expense' coverage provide in a DC commercial property policy?

Accepted Answer

Payment for expenses above normal operating costs incurred to continue operations after a covered loss

Answer

Extra expense coverage pays for additional costs above normal operating expenses that are necessary to continue or resume operations after a covered loss.

Question 2

Under DC property insurance rules, what is 'subrogation'?

Accepted Answer

The insurer's right to recover from a negligent third party after paying the insured's claim

Answer

Subrogation allows the insurer, after paying a claim, to step into the insured's shoes and recover the loss from the responsible third party.

Question 3

Which DC property coverage pays for loss or damage to goods in transit by a motor carrier?

Accepted Answer

Motor truck cargo insurance

Answer

Motor truck cargo insurance covers freight while in transit in a motor vehicle, protecting the carrier against claims for cargo loss or damage.

Question 4

What is the 'appraisal clause' in a DC property insurance policy used for?

Accepted Answer

Resolving disputes about the amount of loss when the insured and insurer disagree

Answer

The appraisal clause provides a mechanism to resolve disputes about the dollar amount of a covered loss without going to court.

Question 5

Which of the following is covered under the Causes of Loss – Special Form for commercial property in DC?

Accepted Answer

Accidental discharge of water from a burst pipe inside the building

Answer

Accidental discharge from a burst pipe (sudden and accidental water discharge) is generally covered under the Special Causes of Loss Form as it is not among the standard exclusions.

DC - District of Columbia Insurance Practice Test

DC - District of Columbia Insurance Practice Test

DC Property Insurance 2