One option for coverage for flood, earthquake, and possible other loss exposures not covered under regular commercial property policies is a difference in conditions (DIC) policy. Which one of the following statements is true regarding DIC policies? DIC policies often require coinsurance as a condition of the property coverage. DIC insurance is not a cost-effective method of obtaining flood and earthquake coverage. DIC forms may offer broader coverage for some perils, and some exclusions may be less restrictive. A DIC policy takes little time to negotiate and prepare when compared to a policy made up of standard forms.

This sort of insurance is designed to protect the buyer from risks that are not covered by standard…

Answered: One option for coverage for flood,…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

One option for coverage for flood, earthquake, and possible other loss exposures not covered under regular commercial property policies is a difference in conditions (DIC) policy. Which one of the following statements is true regarding DIC policies?

		DIC policies often require coinsurance as a condition of the property coverage.
		DIC insurance is not a cost-effective method of obtaining flood and earthquake coverage.
		DIC forms may offer broader coverage for some perils, and some exclusions may be less restrictive.
		A DIC policy takes little time to negotiate and prepare when compared to a policy made up of standard forms.