Which of the following statements about covered perils and loss settlement under an unendorsed Homeowners 3 policy is true?
A) The dwelling is covered on a named-perils basis.
B) Personal property losses are settled on an actual cash value basis.
C) Losses to the dwelling are always settled on an actual cash value basis.
D) Personal property is covered on an open-perils basis.
Answer: B
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Chapter 1 discusses 10 principles that form the foundation of personal finance. The principle that considers the importance of insurance is the ________ principle
A) agency problem — beware the sales pitch B) all risk is not equal C) time value of money D) protect yourself against major catastrophes E) none of the above
If you want to have $1,700 in seven years, how much money must you put in a savings account today? Assume that the savings account pays 6% and it is compounded quarterly (round to the nearest $10)
A) $1,120 B) $1,130 C) $1,110 D) $1,140