Arizona Adjuster Practice Exam

Which statement about the commercial inland marine policy commercial articles floater is true?

1. Theft is covered under a commercial articles floater

2. Exclusively for non-profit organizations

3. Only covers automotive equipment

4. Insurance limited to photography equipment only

The correct answer is: Theft is covered under a commercial articles floater

The statement regarding theft coverage under a commercial articles floater is accurate because commercial inland marine policies, including commercial articles floaters, are designed to cover a wide range of movable and transportable property. This type of floater typically includes coverage for various items that a business may need to transport or use away from its premises, including theft protection. Since these policies are intended to insure goods that are often in transit or used at multiple locations, theft coverage is an essential component, allowing businesses to protect their assets from loss due to theft regardless of the specific type of property insured. The other choices do not align with the purpose and scope of a commercial articles floater. For instance, claiming that the floater is exclusively for non-profit organizations does not reflect the reality that both profit and non-profit entities can utilize this coverage. Similarly, stating that it only covers automotive equipment or photography equipment is incorrect, as the commercial articles floater encompasses a broad spectrum of business property, not limited to specific types of equipment.