Arkansas Insurance Adjuster Practice Exam

Under the Earthquake and Volcanic Eruption endorsement in a commercial property policy, what is the time span within which multiple events are considered a 'single occurrence'?

1. 120 hours (5 days)

2. 24 hours (1 day)

3. 168 hours (7 days)

4. 72 hours (3 days)

The correct answer is: 120 hours (5 days)

The correct answer is A 120 hours (5 days). This means that if multiple earthquake or volcanic eruption events occur within a 120-hour time span, they will be considered as a single occurrence for the purpose of coverage under the endorsement. This is important to note as it determines how many separate deductibles or limits may apply. Option B is incorrect because 24 hours is too short of a time span to accurately assess the impact and damages caused by multiple events. Option C is incorrect because 168 hours is too long of a time span and would likely result in multiple occurrences being combined into a single event, potentially causing confusion and disputes during the claims process. Option D is incorrect because 72 hours is also too short of a time span and does not allow for enough time to thoroughly evaluate the impact and damages caused by multiple events.