Author Question: The major difference between the dwelling coverage (Part A) of the Homeowners 2 (Broad From) policy ... (Read 73 times)

Capo · **on:** Jul 11, 2018

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.

Question 2

Assume that you have 100,000 invested in a stock that is returning 14, 150,000 invested in a
stock that is returning 18, and 200,000 invested in a stock that is returning 15. What is the
expected return of your portfolio?

A) 15.67 B) 14.97 C) 13.25 D) 15.78