Actuarial Notes

Exam DISC-IA Practice Question 802

Study guide: Exam DISC-IA

A sign contractor carries consecutive one-year occurrence CGL policies with different insurers: Policy 1 for 2025 and Policy 2 for 2026. On December 30, 2025 the contractor's crane falls across a street, blocking the entrance of a restaurant for the first ten days of January 2026. Nothing at the restaurant is physically damaged, but it loses ten days of business. Which policy's Coverage A applies to the restaurant's claim, and why?

  • A) Policy 2, because the restaurant's loss of business was actually suffered in January 2026
  • B) Policy 2, because loss of use of tangible property is deemed to occur when the claim is made
  • C) Neither, because loss of use of property that is not physically injured is not property damage at all
  • D) Policy 1, because such loss of use is deemed to occur when the occurrence causing it happened

Answer this question and see the worked solution

Concepts tested

More questions from this set