Which of the Following Statements Concerning Coverage Under the Homeowners

question 40

Multiple Choice

Which of the following statements concerning coverage under the Homeowners 3 policy is true?

• A)If a power failure away from the insured dwelling causes a loss,the loss is covered.
• B)If a Coverage C peril causes a collapse,the resulting damage is covered.
• C)If an insured peril damages a portion of a pair or set (e.g.matching lamps or end tables),the insurer must pay the full value of the entire pair or set.
• D)If a discharge from a home appliance causes the home to flood,the loss is excluded..

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Definitions:

Reissuance

The process of re-releasing previously issued shares back into the market, often after they've been bought back by the company.

Treasury Stock

Shares that were once issued and outstanding but were later bought back by the company, reducing the amount of outstanding stock on the open market.

Cash Dividend

A payout from a corporation's profits, determined by its board of directors, provided to a specific group of its stockholders as cash.

Authorized Shares

The maximum number of shares that a corporation is legally permitted to issue, as outlined in its articles of incorporation.