Which of the Following Is Covered Under a Fire Insurance

question 10

Multiple Choice

Which of the following is covered under a fire insurance policy without any extended coverage?

• A) A fire caused by extreme heat in desert areas
• B) A fire caused by an electrical fault in a factory
• C) Smoke arising out of a singed electrical circuit
• D) Smoke damage as a result of excessively overcooked food

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Definitions:

Personal Exemption

A specific amount that taxpayers could deduct from their taxable income for themselves and their dependents, applicable in tax years before 2018.

Income Tax Withholding

The practice of deducting income tax from an employee's gross pay on behalf of the government, reducing the amount the employee takes home.

Multiple Support Agreement

An agreement where multiple parties contribute to the support of an individual, allowing one to claim a tax exemption under certain conditions.

Claim the Mother

The act of declaring a mother as a dependent or beneficiary for tax or legal purposes, subject to specific criteria.