It would be reasonable to assume that the hot spot and case temperature test would be performed with the device running at maximum continuous output power of 500W, but it has been stated that the device will not be tested under such operating conditions.
The hot spot temperature will be monitored using the thermocouple output of the drive under all the test conditions. If the temperature exceeds the specified temperature, it has to enter fault mode. When the fault conditions are reached, the system will have to provide an indication should be made as required in the technical reference document item 14.E. How the system responds to the fault event would be up to the different teams.