Question 3786 Deck General

The correct answer is B) the cost of labor and material to restore the property to the service condition which existed prior to the casualty. This is the correct answer because when a MODU (Mobile Offshore Drilling Unit) is involved in a casualty, the cost of property damage refers to the actual cost of repairing the damaged property and restoring it to its pre-casualty condition. This includes the cost of labor and materials needed to complete the repairs, not just the monetary claims awarded to individuals or companies, or the lost revenue during the repair period. The other options are incorrect because they do not accurately represent the full scope of property damage costs in a MODU casualty. Option A is limited to a maximum of $50,000, which may not cover the actual repair costs. Option C is also limited to a maximum of $50,000 for lost revenue, which is not the same as the direct repair costs.