One Inland Marine Coverage Form Is the Accounts Receivable Coverage

question 22

Multiple Choice

One inland marine coverage form is the accounts receivable coverage form.In which of the following cases would the purchaser of this form (the insured) be indemnified through the coverage?

• A)if the insured cannot pay amounts owed because the purchaser has become insolvent
• B)if the insured cannot pay amounts owed because the purchaser has suffered an insured physical damage loss
• C)if the insured cannot collect accounts receivable because of the destruction of records
• D)if the insured cannot collect accounts receivable because the purchaser extended credit to poor credit risks

---

Definitions:

Peptic Ulcer Disease

A condition involving the formation of open sores in the lining of the stomach or the upper part of the small intestine, often due to infection with H. pylori or the use of NSAIDs.

Nonsteroidal Antiinflammatory Drugs

A class of medications that reduce pain, decrease fever, prevent blood clots, and, in higher doses, decrease inflammation.

Hypertension

A chronic medical condition where the blood pressure in the arteries is persistently elevated, which can lead to serious health complications.

Streptococcal Infections

Diseases caused by Streptococcus bacteria, which can lead to conditions ranging from mild throat infections to life-threatening diseases.