Commercial PropertyQuestion 116 of 215
Which of the following statements about commercial property insurance is FALSE?
a.Equipment breakdown caused by mechanical or electrical failure of pressure vessels is typically excluded from standard commercial property forms
b.The Special causes-of-loss form covers any direct physical loss unless specifically excluded
c.A Businessowners Policy combines property and liability coverages for eligible small-to-mid-sized businesses
d.Ocean marine policies are designed primarily for land-based commercial buildings
Explanation
The false statement is that ocean marine policies are designed for land-based commercial buildings. Ocean marine is the oldest line of insurance and covers ships, cargo, freight, and the shipowner's liability — it is not used to insure buildings on land. The other three statements are accurate: the Special form is open-perils, equipment/boiler losses normally need a separate form or endorsement, and a BOP packages property and liability for small-to-mid commercial risks.
Law Reference: ISO Commercial Property — common policy conditions and modular structurePractice all 215 questions free — no signup required.
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