Which of the Following Statements About the Coverage for Other

question 6

Multiple Choice

Which of the following statements about the coverage for other structures (Coverage B.under the Homeowners 3 policy is true?

• A)The coverage applies to a detached garage or tool shed on the residence premises.
• B)Structures attached to the dwelling by a fence or utility line are considered to be part of the dwelling rather than other structures.
• C)Coverage applies even if the other structure is used for business purposes.
• D)There is no coverage for a private garage if it is rented to a tenant of the dwelling.

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Definitions:

Outstanding Stock

The shares of a corporation that have been issued and are in the hands of the public.

Long-Term Investments-HTM

Investments classified as held-to-maturity (HTM) are financial assets a company intends and is able to hold until a fixed future date.

Short-Term Investment-AFS

Refers to Available-for-Sale short-term investments that are not classified as held-to-maturity or trading, and can be sold in response to liquidity needs or changes in interest rates.

Available-for-Sale Debt Securities

Debt securities not classified as held-to-maturity or trading securities, and are thus recorded at fair value with changes reflected in other comprehensive income.