Other Than Life (OTL) Practice Exam

Which coverage pays for lost earnings from damage to finished stock under a Profits Form policy?

1. Gross Earnings Insurance

2. Extra Expense Insurance

3. Property Damage Insurance

4. None of the above

The correct answer is: None of the above

The correct answer is that none of the options listed specifically covers lost earnings from damage to finished stock under a Profits Form policy. In a Profits Form policy, coverage is generally focused on loss of income due to business interruption rather than direct physical losses or damage. Gross Earnings Insurance typically covers loss of income caused by property damage that interrupts the business operations but is more aligned with business income as a whole rather than specifically targeting finished stock. Extra Expense Insurance is intended to cover additional costs incurred to continue business operations after a loss, rather than compensating lost earnings. Property Damage Insurance focuses on protecting physical assets rather than income losses. Therefore, the context of the question regarding lost earnings from damage to finished stock falls outside the definitions and purposes of the other listed types of coverage, leading to the conclusion that none of the options adequately addresses this specific need in a Profits Form policy.