Actuarial Notes

Exam DISC-IA Practice Question 611

Study guide: Exam DISC-IA

A restaurant insures its building and business personal property under the BPP with the causes of loss special form. In one month, a server takes $3,000 of wine home, and a cook who has just been fired smashes $5,000 of kitchen equipment on his way out. What does the special form cover?

  • A) Both losses, because the special form covers all risks of direct physical loss
  • B) Neither loss, because the form excludes all dishonest or criminal acts of employees
  • C) The equipment the cook smashed, but not the wine the server took
  • D) The wine the server took, but not the equipment the cook smashed

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