Question

    Losses other than property damage that occur as a result

    of physical loss to a business for example, the cost of maintaining key employees to help reorganize after a fire is called?
    A Conditional Contract Correct Answer Incorrect Answer
    B Conditional Receipt Correct Answer Incorrect Answer
    C Conditional Renewable Correct Answer Incorrect Answer
    D Consequential loss Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    The conditionally renewable provision that allows an insurance company to cancel or not renew a policy benefits the insurer, not the policyholder. ... The insurer may increase the insurance premium on the policy if it decides to let the policyholder renew for another period.

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