Question 4018 of 303 · California Life-Only Agent Exam

Business overhead expense insurance pays

Exactly one answer is correct.

Athe owner's personal living expenses while he or she is disabled
Bthe salaries of replacement workers for deceased employees
Cthe fixed expenses of a business during the owner's disability
Dthe payments due to the owner's heirs at the death of the owner

Show solution

Correct answer to question 4018

C: the fixed expenses of a business during the owner's disability

Explanation

Overhead expense coverage helps a business continue operating during an owner's disability. It is disability insurance, not life insurance.