77. How much coverage does the Equipment Breakdown Coverage policy automatically provide for losses arising out of ammonia contamination?
Answer: C
The Equipment Breakdown Coverage policy automatically provides $25000 per breakdown for losses arising out of ammonia contamination.
A) $15000 per breakdown
This option is incorrect as it underestimates the amount of coverage provided by the Equipment Breakdown Coverage policy for losses due to ammonia contamination. The policy explicitly states a higher limit than $15,000, indicating that this amount is insufficient.
B) $20000 per breakdown
This option is also incorrect. Although $20,000 is a higher limit than $15,000, it still does not meet the actual coverage amount specified in the Equipment Breakdown Coverage policy for ammonia contamination, which is greater than $20,000.
C) $25000 per breakdown
This is the correct answer, as the Equipment Breakdown Coverage policy automatically provides $25,000 per breakdown for losses arising from ammonia contamination. This amount reflects the policy's specific provisions for such incidents, ensuring adequate coverage for insured parties.
D) $30000 per breakdown
This option is incorrect because it exceeds the coverage limit established by the Equipment Breakdown Coverage policy for ammonia contamination. The policy does not provide $30,000, indicating that this amount is beyond what is automatically covered.
Conclusion
The correct answer, $25,000 per breakdown, accurately reflects the coverage provided by the Equipment Breakdown Coverage policy for losses due to ammonia contamination. All other options fail to align with the policy's specified limits, either underestimating or overestimating the coverage amount. Thus, Option C is definitively the only accurate choice.