Arkansas Insurance Adjuster Practice Exam 2026 - Free Insurance Adjuster Practice Questions and Study Guide

A This type of loss cannot be covered because it is incorrect. Business income and extra expense due to loss of electrical service can be covered under utility time element endorsement.

B: Spoilage is incorrect because it covers losses related to contamination or spoilage of goods, not loss of business income and extra expense.

D: Utility Services - Direct Damage is incorrect because it only covers physical damages to utility services, not loss of business income and extra expense.

Utility time element endorsement is the correct answer because it specifically covers loss of business income and extra expense due to loss of electrical service. This type of endorsement is designed to provide coverage for utility service interruptions that result in financial loss for businesses. This includes interruption of services due to damage to utility property, such as power lines, that affects the business's ability to operate. Additionally, it can cover extra expenses incurred by the business to minimize the impact of the interruption.