All the Following Are Provisions in the HO-2 Contract That

question 29

Multiple Choice

All the following are provisions in the HO-2 contract that can decrease amounts payable by the insurance company except:

• A)deductibles
• B)coinsurance/replacement cost provisions
• C)special limits on certain types of property
• D)mortgage clause

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Definitions:

Collateral

An asset offered to secure a loan or other credit and subject to seizure on default.

Investment Property

Real estate property that is purchased with the intention of earning a return on investment through rental income, the future resale of the property, or both.

Stocks

Shares of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.

Commodity Contracts

Commodity contracts are legally binding agreements for the purchase or sale of physical goods or raw materials at a predetermined price and future date.