The employees of an industrial heating and cooling company spent four days installing a large gas furnace in a newly-constructed building. While testing the furnace one week later, an explosion occurred, damaging the building.
Damage to the building was covered under the heating and cooling company's general liability insurance. When the heating and cooling company also sought reimbursement for the time its employees spent installing the furnace, the insurer denied coverage and noted a specific applicable exclusion. What exclusion denies coverage for such reimbursement?
A) damage to the insured's product
B) damage to the insured's work
C) damage to impaired property
D) damage to the insured's reputation.
Question 2
The risk premium would be greater for an investment in an oil and gas exploration in unproven
fields than an investment in preferred stock because
A) the preferred stock is more liquid.
B) oil and gas exploration investments have a greater variability in possible returns.
C) the inflation rate would vary more with oil and gas exploration investments.
D) both A and B
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