Which of the following statements about the equipment breakdown protection coverage form is (are) true?
I. The covered cause of loss is a breakdown of covered equipment, including boilers, machinery, and electrical and mechanical equipment.
II. It provides coverage for the reasonable cost of expediting permanent repair or replacement of damaged property.
A) I only
B) II only
C) both I and II
D) neither I nor II
Question 2
All of the following statements about business income insurance are true EXCEPT
A) Business income is defined as total sales that would have been made if the loss had not occurred.
B) Payroll is considered a continuing normal operating expense.
C) Business income insurance does not cover the physical damage caused by a peril which created the interruption in business.
D) The business income coverage form can be purchased with a coinsurance requirement.
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