Florida Insurance Claims Adjuster License Practice Exam

Covered losses in a Boiler and Machinery Policy include:

1. Explosion, overheating, burning and cracking

2. Leaking at the valve, fitting or shaft

3. The functioning of a safety device

4. Depletion, deterioration and wear and tear

The correct answer is: Explosion, overheating, burning and cracking

A boiler and machinery policy provides coverage for physical damage to equipment and the resulting business income loss. Covered losses would include sudden and accidental direct physical loss or damage to the covered equipment as a result of explosion, overheating, burning and cracking. Option B is incorrect because it only specifies leaking at specific parts of the equipment and does not cover other sources of loss. Option C is incorrect because it only covers the functioning of a specific part of the equipment, and not the equipment as a whole. Option D is incorrect because it only covers normal wear and tear of the equipment, not sudden and accidental damage as specified in the policy.