O-LevelCommerceInsuranceOct/Nov 2024Paper 1 Q281 Mark
A retail store suffers fire damage worth $35000. The store closes for four weeks while the damage is being repaired. The cost of the repair is $30000. The store owner has insurance policies for premises and consequential loss. Which statement best explains the store owner's insurance cover?
AThey can claim full compensation of $35000 for the fire damage.
BThey can claim loss of profit from being closed as well as $30000 for the fire damage.
CThey will only receive payment for loss of profit from being closed.
DThey will receive $65000 as compensation for the fire damage to the premises.
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of insurance within the Commercesyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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