The Major Difference Between the Dwelling Coverage (Part A) of the Homeowners

question 38

Multiple Choice

The major difference between the dwelling coverage (Part A) of the Homeowners 2 (Broad From) policy and the Homeowners 3 (Special Form) policy is that

• A) the HO-3 provides open perils ("all risks") coverage and the HO-2 provides named-perils coverage.
• B) the HO-3 provides actual cash value coverage, the HO-2 provides replacement cost coverage.
• C) the HO-3 is always written without a deductible, the HO-2 always written with a deductible.
• D) the HO-3 can be used for any type of construction, the HO-2 is limited to wood frame homes.

---

Definitions:

E Codes

External cause codes in medical coding that represent the cause of injury, poisoning, or other adverse effects, used in health records and statistical data collection.

Third-Party Payer

A health plan that agrees to carry the risk of paying for patient services.

Three-Digit Categories

A system of grouping or classification that uses three numbers for identification and organization purposes.