One inland marine coverage form is the accounts receivable coverage fo

One inland marine coverage form is the accounts receivable coverage form. In which of the following cases would the purchaser of this form (the insured) be indemnified through the coverage?

A) if the insured cannot pay amounts owed because the purchaser has become insolvent
B) if the insured cannot pay amounts owed because the purchaser has incurred an insured physical damage loss
C) if the insured cannot collect accounts receivable because of the destruction of records
D) if the insured cannot collect accounts receivable because the purchaser extended credit to poor credit risks

ANSWER

Answer: C