Which of the Following Statements Is True About Open-Perils Policy

question 60

Multiple Choice

Which of the following statements is true about open-perils policy and named-perils policy?

• A)Open-perils policies cover many perils not covered by named-perils policies.
• B)An open-perils policy covers only losses caused by the perils listed in the policy.
• C)A named-perils policy is also known as the "all risk" policy.
• D)The exclusions in a named-perils policy are more definitive of coverage than in an open-perils policy.
• E)A named-perils policy provides broader coverage than an open-perils policy.

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Definitions:

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution, aiming to provide an accurate description of the entire data set.

Median

The middle value in a data set, which divides the set into two equal halves, with an equal number of data points above and below it.

Mode

The value that appears most frequently in a data set. A mode can be used as a measure of central tendency, especially for categorical data.

Histogram

A type of graph that represents the distribution of numerical data by showing the number of data points that fall into various ranges or bins.