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.
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.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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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.
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