CRIS Question and answers verified to pass Section 4. 1 - Overview - correct answer ...
What are Time Element losses? - correct answer a loss of income or an increase in operating expenses as a result of not being able to use the damaged property while it is being repaired or replaced.
It...
CRIS - Property Coverage - Ch. 4 - Time
Element Coverage
Section 4. 1 - Overview - correct answer ✔...
What are Time Element losses? - correct answer ✔a loss of income or an
increase in operating expenses as a result of not being able to use the
damaged property while it is being repaired or replaced.
It's referred to time element because the amount of the income loss or
expense increase depends on how long it takes to repair or replace the
damaged property.
Time element property insurance pays for...? - correct answer ✔the loss of
income or the increase in operating expenses that results from suspended or
makeshift operations while the damaged property is being repaired or
replaced.
Section 4. 2 - Time Element Loss Exposures for Contractors - correct answer
✔...
There are three principal types of time element loss exposures. What are
they? - correct answer ✔1) Loss of income (including rental value)
2) Extra expense
3) Dependent properties loss of income or extra expense
Loss of Income (Including Rental Value):
, Loss of income is the principal time element exposure for organizations whose
operations depend on....? - correct answer ✔particular buildings and their
contents.
- Manufacturers are the classic example of businesses in this category, which
also includes retailers. In the event of severe damage to their facilities, these
types of organizations would probably have to shut down until the buildings
were repaired and the contents replaced. The shutdown would undoubtedly
cause a loss of income.
Most contractors have little or no loss of income exposure associated with
their premises. Why? - correct answer ✔a contractor whose premises were
severely damaged would generally be able to continue operations with no loss
of income.
- The exception to this general rule is a contractor that owns its own building
and leases space in it to others. In that case, severe damage to the
contractor's premises would probably cause a loss of rental value.
Extra Expense:
What type of organization would benefit from this type of time element
coverage? - correct answer ✔Organizations that provide services, and
whose property is not a key source of their income, would generally be able to
function out of temporary quarters in the event of damage to their own, with
little or no resulting loss of income.
- the expenses associated with arranging, equipping, and operating out of the
temporary quarters on a moment's notice are likely to be far in excess of
normal operating expenses.
Contractors generally fall into which type of time element coverage? - correct
answer ✔Extra Expense
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Academia199. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
