Which of the Following Statements About Dwelling Property 3 (Special

question 38

Multiple Choice

Which of the following statements about Dwelling Property 3 (special form) is (are) true?
I.Personal property is covered only for those perils specifically named in the policy.
II.The dwelling and other structures are covered on an "open perils" (all risks) basis.

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

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Definitions:

2% Floor

A tax rule that limits the deductibility of certain miscellaneous expenses to only the portion that exceeds 2% of the taxpayer’s adjusted gross income.

Sales Taxes

Taxes levied by governments on the sale of goods and services, which are typically paid by the consumer at the point of purchase.

Schedule A

A form used with the U.S. federal tax return (Form 1040) to itemize deductions, including medical expenses, state and local taxes, and charitable donations.

Itemized Deduction

Itemized deductions are specific expenses allowed by the IRS that can decrease an individual's taxable income.