West Virginia Adjusters Practice Exam

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Which of the following is NOT an example of an "indirect loss"?

During a fire, the fire department hoses down a house to extinguish the flames. The water damage that results is an indirect loss.
During a power outage, food spoils in a refrigerator resulting in a loss.
After a burglary, the temporary closure of a business results in loss of income.
The additional living expenses incurred after a house fire while waiting for permanent repairs.

The correct answer is: During a fire, the fire department hoses down a house to extinguish the flames. The water damage that results is an indirect loss.

Indirect loss refers to a financial loss that is a result of an event, but not directly caused by it. Option A is incorrect because the water damage is a direct result of the fire, whereas the other options are clear examples of indirect loss. Option B is an indirect loss as a result of a power outage. Option C is an indirect loss due to the temporary closure of a business after a burglary. Option D is an indirect loss due to the additional living expenses incurred after a house fire.