A Fort Lauderdale contract requires general liability limits of $2,000,000, and the startup policy limit is $1,000,000. What status should be reported?
Correct Answer
D) coverage gap
Insurance startup review compares required limits with policy evidence.
Why This Is the Correct Answer
Insurance startup review compares required limits with policy evidence.
Why the Other Options Are Wrong
Option A: tax registration gap banking setup log
tax registration gap banking setup log puts the item in the wrong financial bucket, timing, base, or comparison for insurance limit gap.
Option B: lien period open tax registration packet
lien period open tax registration packet puts the item in the wrong financial bucket, timing, base, or comparison for insurance limit gap.
Option C: qualifier inactive ownership review memo
qualifier inactive ownership review memo puts the item in the wrong financial bucket, timing, base, or comparison for insurance limit gap.
Memory Technique
Startup and review live in different drawers; Office Manager tells which opens.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Insurance setup; certificate limits and contract requirements; verify the startup duty, registration, or financial setup before answering.
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