Florida Insurance Claims Adjuster License Practice Exam

Under Boiler and Machinery insurance, an 'accident' is defined as:

1. Occurring within the policy period of an occurrence policy

2. A continuous and repeated exposure to the same condition

3. A sudden and accidental breakdown of a part

4. A one-time occurrence

The correct answer is: A sudden and accidental breakdown of a part

Boiler and Machinery insurance often referred to as Equipment Breakdown insurance, offers protection against physical damage to machinery and equipment caused by breakdown or an accident. An 'accident' in the context of this insurance is defined as a sudden and unexpected event that is not caused by continuous or repeated exposure to the same condition. Options A and D are incorrect as they do not mention the sudden and unexpected nature of an accident. Option B is incorrect as it refers to a continuous and repeated exposure rather than a one-time occurrence. Therefore, C is the correct answer as it accurately reflects the definition of an 'accident' in the context of Boiler and Machinery insurance.