Which of the Following Statements About the Additional Coverage for Damage

question 24

Multiple Choice

Which of the following statements about the additional coverage for damage to property of others in Section II of the homeowners policy is true?

• A)The maximum amount of coverage is $25,000 per occurrence.
• B)Payments are made on the basis of the replacement cost of the damaged property.
• C)There is coverage for property damage arising out of a business engaged in on a full-time basis by an insured.
• D)There is coverage for intentional property damage by any insured who is a teenager.

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Definitions:

Special Journals

Accounting books designed for recording specific types of transactions in a detailed and efficient manner.

Purchases Journal

A special journal that records all purchases of merchandise on account.

Merchandise

Goods purchased for resale to customers in the ordinary course of a business's operations.

Subsidiary Ledger

A subsidiary ledger is a detailed record that supports the entries recorded in a primary accounting ledger, often used for accounts like accounts payable and receivable.