Registered Insurance Brokers of Ontario (RIBO) Practice Exam

What does Freezer foods coverage typically insure against?

1. Loss caused by any appliance breakdown

2. Loss due to spoilage from power interruptions

3. Loss caused by mechanical breakdown or outside power interruption

4. Loss from theft of freezer contents

The correct answer is: Loss caused by mechanical breakdown or outside power interruption

Freezer foods coverage is specifically designed to protect against losses related to food spoilage resulting from certain events. The correct answer encompasses two critical aspects: mechanical breakdown (such as a malfunction of the freezer itself) and outside power interruption (like a power outage from the utility company). This means that if either of these circumstances leads to the deterioration of the food stored in the freezer, the insurance policy would typically cover the associated losses. The focus here is on the conditions that directly impact the ability of a refrigerated appliance to maintain safe temperatures, leading to spoilage. Other scenarios, while they might seem relevant, do not comprehensively address the primary risks this coverage aims to mitigate. For instance, coverage for loss caused by any appliance breakdown overall may not be limited to food spoilage but could encompass various other issues not specifically tied to food losses. Similarly, loss from theft of freezer contents pertains to theft rather than spoilage, which is outside the standard focus of freezer foods coverage.