A homeowners policy that covers only the specific perils explicitly listed in the policy, such as fire, lightning, or windstorm, is known as which type of coverage form?
A. Open-peril (all-risk) coverage
B. Named-peril coverage
C. Guaranteed replacement coverage
D. Blanket coverage
Source: General insurance principle
In the standard ISO homeowners policy series, which form is generally recognized as providing the broadest 'special form' (open-peril) coverage on the dwelling among the commonly issued homeowners forms?
A. HO-1 (Basic Form)
B. HO-2 (Broad Form)
C. HO-3 (Special Form)
D. HO-4 (Contents Broad Form/Renters)
Source: General insurance principle
The HO-6 policy form is specifically designed to insure which type of property?
A. A single-family detached home
B. A mobile/manufactured home
C. A condominium unit owner's interior improvements and personal property
D. A landlord's rented dwelling structure
Source: General insurance principle
The valuation method that pays a claim based on the cost to repair or replace damaged property with new property of like kind and quality, without any deduction for depreciation, is called:
A. Actual cash value (ACV)
B. Replacement cost value
C. Agreed value
D. Market value
Source: General insurance principle
Actual cash value (ACV) is most commonly calculated using which formula?
A. Replacement cost plus depreciation
B. Replacement cost minus depreciation
C. Market value plus depreciation
D. Original purchase price with no adjustment
Source: General insurance principle
