1. The owners of BB Hotel wanted to make sure that they were covered for damage to the air conditioning and refrigeration equipment. In equipment breakdown insurance, air conditioning and refrigeration equipment includes components such as

   		Circuit breakers.
   		Coils.
   		Distribution panels.
   		Liquefied gas tanks.

After experiencing an equipment breakdown loss, Long Industries incurred various expenses. In Long's Equipment Breakdown Protection Coverage Form, expediting expenses include which one of the following?

		The cost for Long to rent another building in order to continue operations
		The costs of overnight shipping for Long to obtain a machine part
		The cost for Long to rent computer equipment
		Long's loss of net income

1. T&T Tax Services experiences vandalism and burglary to its business office. Thomas, the owner of the business reports a claim to its insurer. Thomas is concerned that he may do something wrong during the claim process and he carefully reads the conditions of his Building and Personal Property Coverage Form (BPP). Which one of the following statements is correct with respect to the condition Duties in the Event of Loss or Damage of the (BPP)?

   		The claims adjuster is required to take all reasonable steps to protect the property from further loss, prepare an inventory and set the damaged property aside.
   		To prevent insurance fraud, the insurer is obliged to notify the police of all losses reported.
   		The insured is required to give the insurer notice of the loss, including a description of the property damaged, within 24 hours.
   		If the insured fails to perform any of them, the insurer may not have to pay for the loss.

In the Equipment Breakdown Protection Coverage Form, there are several exclusions that eliminate coverage for certain causes of loss and types of equipment. Which one of the following is an equipment breakdown exclusion?

		Additional expenses to clean up covered property damaged by a hazardous substance
		Spoilage damage to covered property resulting from ammonia contamination.
		Breakdown to equipment caused by fire
		Costs to research damaged computer data