Colorado CDL Practice Test

Why must an insured take reasonable steps to prevent further damage after an insured event?

Because it converts an excluded loss into a covered loss Because the insurer becomes owner of the premises immediately Because the insured has a duty to mitigate the loss Because mitigation automatically removes the policy excess

Correct Answer:

Because the insured has a duty to mitigate the loss

Explanation:

The insured is expected to act reasonably to limit further loss, for example by arranging emergency protection. Mitigation does not change exclusions or automatically remove an excess.

Access more questions from this quiz

Continue to Colorado CDL Practice Test for more practice questions and the full quiz experience.

Access More Questions