Match the term with its definition.
-A loss in which physical damage to property reduces its value to the property owner
A)actual cash value (ACV)
B)commercial general liability (CGL) insurance
C)direct loss
D)disability buyout insurance
E)disability insurance
F)indirect loss
G)loss avoidance
H)loss prevention
I)loss reduction
J)replacement value of property

Question

Quizplus · Accepted Answer

Direct loss is a loss in which physical damage to property reduces its value to the property owner.

Answer: A 
 Actual cash value (ACV) is the value of property that has been lost or damaged.

Answer: F 
 Indirect loss is a loss that results from a direct loss, such as lost income or extra expenses.

Answer: J 
 Replacement value of property is the cost of replacing property that has been lost or damaged without any deduction for depreciation.

Answer: H 
 Loss prevention refers to measures taken to prevent or reduce the frequency or severity of losses.

Answer: G 
 Loss avoidance refers to measures taken to avoid losses altogether, such as not engaging in risky activities or not taking on certain clients.

Answer: E 
 Disability insurance provides income to an individual who is unable to work due to a disability.

Answer: D 
 Disability buyout insurance is a type of insurance that provides funds to a business owner to buy out a disabled co-owner.

Answer: B
 Commercial general liability (CGL) insurance covers businesses for claims of bodily injury or property damage that occur as a result of their business operations.

Match the Term with Its Definition