The Concurrent Causation Exclusion in the Homeowners 3 Policy Specifies

question 1

Multiple Choice

The concurrent causation exclusion in the Homeowners 3 policy specifies that:

• A)if two or more perils jointly cause a loss,there is no coverage if one of the perils is excluded.
• B)if the insured has two or more policies in force at the time of the loss,the loss is not covered.
• C)if the insured has two or more policies in force at the time of the loss,the loss is pro-rated between the insurers.
• D)if two or more perils jointly cause a loss,there is coverage as long as one of the perils is covered.

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Definitions:

Market Price

The current value at which a good or service can be bought or sold in a marketplace, determined by the forces of supply and demand.

Perfect Price Discrimination

Perfect price discrimination occurs when a seller charges every consumer the maximum they are willing to pay, capturing the entire consumer surplus as profit.

Marginal Revenue

The additional revenue that a company gains by selling one more unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping.