Which of the Following Statements About Dwelling Property 1 (Basic

question 44

Multiple Choice

Which of the following statements about Dwelling Property 1 (basic form) is true?

• A)Coverage on the dwelling is written on a replacement cost basis.
• B)The full amount of personal property coverage applies to property away from the insured premises.
• C)Coverage for fair rental value of the dwelling is subject to both an overall maximum and a monthly maximum.
• D)"Open-perils" (all risks)coverage is automatically provided for both the dwelling and personal property.

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Definitions:

Accounts Payable

The amount of money owed by a company to its creditors for goods and services purchased on credit.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Expenses

The cost of assets consumed or services used in the process of earning revenue.

Depreciation Expense

Depreciation Expense is an accounting method of allocating the cost of a tangible asset over its useful life.