Which of the Following Statements About the Homeowners 8 Policy

question 27

Multiple Choice

Which of the following statements about the Homeowners 8 policy is (are) true?
I.Losses to the dwelling are settled on a replacement cost basis if the dwelling is insured for its full market value.
II.It is designed primarily for expensive,newer,dwellings.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Cost Of Goods Sold

The total expense incurred by a business to manufacture or acquire products that were sold during a specific period.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs associated with making or selling products.

Profitability

A financial metric used to assess the ability of a business to generate earnings relative to its revenue, assets, equity, or other financial metrics.

Liquidity

How effortlessly an asset can be turned into cash without altering its market price.