Actuarial Notes

Exam DISC-IA Practice Question 613

Study guide: Exam DISC-IA

An electrician wires a new kitchen in a restaurant incorrectly. Months later the faulty wiring starts a fire that damages the kitchen. The restaurant is insured under the BPP with the causes of loss special form. How does the form treat the loss?

  • A) The whole loss is excluded, because faulty workmanship caused it
  • B) The whole loss is covered, including the cost to redo the faulty work, because fire is a specified cause of loss
  • C) Only the wiring is covered, because the fire damage is a consequence of the excluded cause
  • D) The fire damage is covered, because a covered cause of loss resulted from the faulty workmanship

Answer this question and see the worked solution

Concepts tested

More questions from this set