Which of the following is NOT a covered peril under the AAIS Contractors Equipment Floater?

The correct answer identifies "voluntary parting" as not being a covered peril under the AAIS Contractors Equipment Floater. In the context of insurance, voluntary parting refers to situations where the insured willingly parts with their property, often as a result of deceptive practices, but it usually does not cover scenarios where the insured has abandoned or surrendered the property without a demand for its return.

The Contractors Equipment Floater is designed to cover specific risks associated with construction equipment, such as theft, fire damage, and explosion, which are common threats to such property. Since these perils are prevalent and critical in assessing risks in construction operations, they are explicitly covered under this type of policy.

On the other hand, voluntary parting is considered a behavioral risk that does not arise from a direct physical hazard or catastrophic event, which is why it is excluded. Understanding this distinction helps individuals in the insurance industry better evaluate the limitations and exclusions present in coverage agreements.