Exam DISC-IA Practice Question 606
Study guide: Exam DISC-IA
A distributor's BPP covers its building and business personal property at one described location, with a 70% coinsurance percentage. Twenty days after buying a second warehouse across town, which it has not yet reported to the insurer, a fire destroys the warehouse. What does the BPP pay for the warehouse?
- A) Up to $250,000, because the newly acquired property extension covers buildings for 30 days
- B) Up to $100,000, because a newly acquired location is covered only for business personal property
- C) The full building limit, because the building item covers any building the insured owns
- D) Nothing, because the coverage extensions do not apply under this coinsurance percentage
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