Which of the following statements about the extra expense coverage form is (are) true?

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Which of the following statements about the extra expense coverage form is (are) true?

I. It provides coverage for the increased cost that must be paid to continue operations during a period of restoration.
II. It provides coverage for lost profits for up to 90 days following a loss.

A) I only
B) II only
C) Both I and II
D) Neither I nor II

Answer: A

Commercial Property Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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