California Adjuster Practice Test 2025 - Free Adjuster Exam Practice Questions and Study Guide

The term "breakdown" under Boiler and Machinery Insurance encompasses specific types of incidents that lead to direct physical damage to machinery. In this context, it refers to unexpected mechanical failures that result in operational issues and potential repair costs.

Options like direct physical damage, leaks from valves, and accidental failure of machinery clearly fit within the definition of breakdown, as they all represent instances where machinery or equipment fails to operate correctly and incurs damage that requires insurance coverage.

However, malfunction due to misalignment is not typically categorized as a breakdown in this insurance framework. Misalignment is often seen as a result of ongoing maintenance issues or lack of proper alignment procedures rather than an unexpected mechanical failure. Therefore, it usually does not qualify for coverage under Boiler and Machinery Insurance, as the term "breakdown" is reserved for more sudden and unforeseen incidents.