Which of the Following Statements About Dwelling Property 1 (Basic

question 44

Multiple Choice

Which of the following statements about Dwelling Property 1 (basic form) is true?

• A)Coverage on the dwelling is written on a replacement cost basis.
• B)The full amount of personal property coverage applies to property away from the insured premises.
• C)Coverage for fair rental value of the dwelling is subject to both an overall maximum and a monthly maximum.
• D)"Open-perils" (all risks)coverage is automatically provided for both the dwelling and personal property.

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Definitions:

Market-Oriented Economy

A market-oriented economy is one where economic decisions and the pricing of goods and services are guided by the interactions of individuals and businesses in the marketplace.

Enforce Contracts

The legal process of ensuring that the terms of a contract are upheld by the parties involved.

Private Property

A legal designation for the ownership of property by non-governmental legal entities, giving the owner exclusive rights over the use, disposal, and benefits of the property.

Federal Government

The federal government is the national government of a federated state, which holds the authority to govern the entire country and is responsible for areas such as defense, foreign policy, and interstate commerce.