Arkansas Insurance Adjuster Practice Exam

A This type of loss cannot be covered

This option is incorrect because there is an endorsement that can cover a company's lost business income and extra expense due to loss of electrical service. It is important to have this coverage in case of unexpected events such as power outages.

C: Spoilage

This option is incorrect because spoilage coverage would apply to perishable items that require specific storage conditions, such as food or medication. It would not cover the loss of business income and extra expenses due to loss of electrical service.

D: Utility Services - Direct Damage

This option is incorrect because utility services coverage would only cover the direct physical damage to the utility services, such as pipes or power lines, and not the resulting loss of business income and extra expenses.

Utility Time Element endorsement, also known as Utility Interruption coverage, is specifically designed to