Michelle Had Four Matching End Tables in Her Home

question 33

Multiple Choice

Michelle had four matching end tables in her home. A fire damaged the home, destroying two of the end tables. Michelle's home was covered by an unendorsed Homeowners 3 policy. Which of the following is true with regard to the settlement for the end tables in this case?

• A) Loss to a pair or set is excluded under the policy.
• B) The insurer will pay the difference in actual cash value of the property before and after the loss.
• C) The insurer will pay the replacement cost of the loss.
• D) If a partial loss to a pair or set occurs, the insurer is liable for replacement of the entire pair or set.

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Definitions:

Second Law

This term is incomplete without a context but could refer to the Second Law of Thermodynamics, which states that the total entropy of an isolated system can never decrease over time.

Thermodynamics

The branch of physics that deals with the relationships and conversions between heat and other forms of energy.

Second Law

An ambiguous term that may refer to the second law of thermodynamics, which states that the entropy of an isolated system not in equilibrium almost always increases.

Thermodynamics

The branch of physics that deals with the relationships between heat and other forms of energy, and how they affect matter.