Renee Is Risk Manager of XYZ Company

question 30

Multiple Choice

Renee is risk manager of XYZ Company.She purchased a Commercial Package Policy for her company and added one of the optional coverages.This option suspends the coinsurance clause and substitutes a new agreement covering any loss in the same proportion that the limit of insurance purchased bears to a value specified in the declarations.This provision is known as

• A)waiver of inventory coverage.
• B)inflation guard coverage.
• C)agreed value coverage.
• D)replacement cost coverage.

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Definitions:

Normally Open

A term describing an electrical switch or relay contact that is open (not conducting) when in its default state, closing only in response to a control action.

Normally Closed

A term used to describe a switch or circuit condition where the default state is closed, allowing current to flow unless actuated to open.

Normally Closed

Refers to an electrical switch or relay configuration where the contacts are in a closed position, allowing current flow, when no actuating force is applied.

Inhibit

To prevent or restrict a particular action or operation, often used in the context of control systems.