Which of the Following Statements About the Additional Coverage for Damage

question 24

Multiple Choice

Which of the following statements about the additional coverage for damage to property of others in Section II of the homeowners policy is true?

• A)The maximum amount of coverage is $25,000 per occurrence.
• B)Payments are made on the basis of the replacement cost of the damaged property.
• C)There is coverage for property damage arising out of a business engaged in on a full-time basis by an insured.
• D)There is coverage for intentional property damage by any insured who is a teenager.

---

Definitions:

Financial Synergy

The potential increase in value and performance of two companies when they are merged, due to various factors like cost savings or revenue enhancement.

Pro Forma Cash Flows

Projected cash flows based on assumptions and estimates, used for planning and financial analysis.

Required Rate of Return

The minimum annual percentage earnings necessary for an investment to be considered acceptable, taking into account its risk and the time value of money.

Financial Merger

A financial merger is a consolidation of two or more companies, primarily for financial gains, improving capital, or enhancing corporate strength through combined resources.