O-LevelCommerceInsurance7100/12 · Oct/Nov 2016 · Q281 Mark

Following a fire, an insurance company pays for damage to premises, for loss of contents and for consequential loss. An example of consequential loss is

Adamage to customers' vehicles.

Bdelay in settlement of the amount due.

Closs of profits as a result of the fire.

Dloss of stock due to water damage.

✓ Correct answer

C: loss of profits as a result of the fire.

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Topic: Insurance, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, Oct/Nov 2016 Paper 1 Variant 2, question 28.

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